Suze Orman Prepaid Cards

In news today, Suze Orman partners with Transunion to trace whether people using her prepaid card can develop a credit score.

Her prepaid card is not the first of it’s kind, however it is the first one to share the data on its users spending habits with a credit bureau. This makes it sound like your score will increase doesn’t it? Wrong!

It is a pilot program and the paperwork says that all information will remain anonymous and will not appear in any Transunion credit reports. To my understanding this means they are going to collect a whole load of data (possibly 2 years worth) before they do anything. The initial decision will be based on everyone’s information, so the chances of you eventually improving your credit score are pretty slim in my mind.

This is not the first time this kind of thing has been attempted, but having Suze Orman’s name attached is a huge deal. Just to say that myself and my wife loved her show when we watched it, some good sense advice that no doubt people will ignore!

My opinion (for what it is worth) is that if you need to use prepaid cards you probably have more issues than can be fixed by this process. You probably need to go old school, try all you can to earn more money, pay of your debt and get a small line of credit from just about anywhere, PAY THE DEBT ON TIME, and move forward from there.

Read more about Suze Orman and TransUnion - http://articles.baltimoresun.com/2012-01-23/business/bs-bz-ambrose-orman-20120123_1_credit-scores-president-of-consumer-education-credit-history