Judi Lisbin, spokesperson for www.getcreditrepair.org said, “While prepaid cards are popular, they don’t improve your credit score.
Fort Lauderdale, FL (PRWEB) February 09, 2012
Financial advisor Suze Orman, popular CNBC host and frequent guest on TODAY has created a new prepaid debit card called the Approved Prepaid MasterCard. As with all prepaid cards, the consumer loads a predetermined amount onto the card and that becomes their credit line. This is a great tool for the consumer to avoid getting into debt because they are limited to what they have already committed. GetCreditRepair.org works with consumers, credit bureaus and creditors to resolve negative, erroneous and outdated items on credit reports.
The new card has created a huge buzz among Orman’s fans and the public since its introduction last week. Along with the buzz has been a good amount of confusion, created by some misguided news outlets, regarding whether or not using the card will improve credit scores. The confusion may be caused by a statement made by Orman on her website promoting the card that says, “I am proud to say that the Approved card is the first prepaid card in history to share information with TransUnion, a major credit bureau.” Many have interpreted this statement to mean that their purchases and payments are reported to the credit reporting agency and responsible handling of credit will be rewarded with a better credit score. This is not the case however. John Ulzheimer, president of consumer education at http://www.smartcredit.com explained that, “The information about the usage of the prepaid card is not being reported to TransUnion for the purposes of credit reporting. It’s being sent to TransUnion for the purposes of research.” Indeed elsewhere on the website it actually discloses that the data gathered will not appear on a consumers TransUnion credit report.
Judi Lisbin, spokesperson for http://www.getcreditrepair.org said, “While prepaid cards are popular, they don’t improve your credit score. If you want to re-establish credit and build a better credit score you should apply for, and responsibly use, a secured credit card. The credit line is tied to a balance of funds deposited to your bank account but your payment history does show up on your credit reports.”
Financial services experts at Consumer Reports reviewed the terms and conditions of Orman’s new card and found that they compared favorably with the better prepaid debit cards in the marketplace.