These days, the question isn't just not what's in your wallet. It's who.
Celebrities like Suze Orman, Magic Johnson, and Russel Simmons all offer prepaid debit cards. Magic Johnson explains why he got into the personalized card business.
“Try to buy something online. You can't,” Magic Johnson said in his commercial.
And he's right. If you don't have a banking account or a credit card, a reloadable card can be helpful. But there can also be a lot of fees, and these celebrity endorsed cards are not the best options on the market That’s because they have monthly fees.
In 2010, the Kardashian Kard was pulled after less than a month for having insanely high fees. But they aren’t the only celebs cashing in on the prepaid card deal.
One of the most unexpected prepaid card spokesman is rapper Lil Wayne. Sure, Wayne knows money. He loves throwing it around and he’s got songs about money. And now the convicted felon wants you to pick up his Young Money prepaid card.
There are also a bunch of fees attached to his card. It costs $4.95 to reload, $2 charge to use at an ATM, and there’s a $3.95 monthly maintenance fee.
Most consumers are better served with traditional checking and credit cards. If you can't or don't want to have those types of accounts, a prepaid card like the Bluebird from Walmart is a much better option than any celebrity prepaid card.
There's no need to throw money away.