Credit

Who has the money in the U.S.A.?

Tom Barlow Jul 21st 2010 @ 2:00PM EST Filed Under: Borrowing, Credit, Wealth

"Follow the money," said Deep Throat in the movie All The President's Men. This set us to wondering just where the money is in the U.S.A.? Luckily, OnlineSchools.org produced this infographic for our friends at Mint.com that shows clearly where following the money will lead you.

Made by Online Schools for Mint.com

7 ways financial reform will impact your life

Lynnette Khalfani-Cox Jul 21st 2010 @ 6:00AM EST Filed Under: Banks, Credit, Home, Personal Loans

Now that President Barack Obama has signed into law the biggest overhaul of the banking industry since the Great Depression, many Americans are wondering exactly how financial reform will impact them.

Officially called The Dodd-Frank Wall Street Reform and Consumer Protection Act, the far-reaching implications of the 2,300-page law will take many months, even years, to be fully felt. Moreover, since specific rules must still be written, observers fear that loopholes and carefully-worded fine print could muddy various elements of financial reform.

Despite these uncertainties, there are some clear ways that financial reform will impact you and your wallet. Here are seven of them:

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Can a piece of plastic make online banking more secure?

Josh Smith Jul 15th 2010 @ 4:00PM EST Filed Under: Banks, Credit, Technology, Fraud

Despite the best efforts of banks and security experts, Internet fraud continues to cost consumers millions of dollars every year. But a new credit card sized piece of plastic has the potential to stop one of the most popular forms of online fraud; fooling consumers or their banks into handing over information that can be used to empty accounts.

This credit card sized piece of plastic that inventor Matt Walker hopes to stop Internet fraud cold in its tracks is the PassWindow, which is a finalist in the Asian Innovation Awards.

Instead of the expensive-to-distribute security tokens that some banks use to verify the identity of a consumer, the PassWindow can be built into your existing bank debit or credit card and operates in a simple manner.

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America's new debtor prison: Jail time being given to those who owe

Martha C. White Jul 15th 2010 @ 8:00AM EST Filed Under: Borrowing, Credit, Debt, Bankruptcy, 101 credit&debt, In the News

Debtors prisons were federally abolished in the United States in the 1800's, yet in certain states, they seem to be making a comeback. Out of Minnesota come disturbing reports of Americans being thrown in jail due to outstanding bills -- sometimes for as little as $85. The Star-Tribune of Minneapolis profiles a number of people who say their debts got them jailed, including Joy Uhlmeyer a 57-year-old patient care advocate who was pulled over on her way home from visiting her elderly mother and put in jail for a night for missing a court hearing about unpaid debt.

The Star-Tribune reviewed the state's court documents and found that arrests like Uhlmeyer's are up 60% in Minnesota over the past four years. And Minnesota isn't the only state where this is happening. It's a turn of events Ed Mierzwinski, consumer program director at advocacy group U.S. Public Interest Research Groups (or PIRG), calls a "very bad situation for consumers." Mierzwinski attributes the practice to "bottom-feeder debt collectors [who] are very aggressive."

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Could 'liar loans' help bring back the housing market?

Ann Brenoff Jul 8th 2010 @ 5:30PM EST Filed Under: Credit, Debt, Real Estate, Mortgages

Liar loans: Where are they when we need them?

There is one surefire way to reinvigorate the housing industry and it's such a simple solution that regulators should be embarrassed they have to be reading about it here: Re-institute the liar loan.

In polite circles, these loans were called stated income loans or "no doc" -- short for "no documentation" loans. They allowed borrowers to say that their income was whatever the bank wanted to hear it was and then, with a wink and a nod, get their money to buy a house. Everybody was happy and no, this alone did not lead to the housing collapse -- although it may lead to its recovery.

First, in their defense: It was those adjustable rate loans with crazy low initial interest rates that jumped into the stratosphere at about the time you lost your job that led to the housing collapse. It was also the fact that some homeowners kept borrowing against the paper equity in their homes under the false assumption that the home's value would continue to appreciate. It didn't.

But liar loans? Puh-lease. They may have hurt those who lied to the extent that their noses grew, but that wasn't most people. Most people inflated their income 15% to 19%, says the research. And that was basically the populace disagreeing with the government about how much of our earnings we should spend on our housing. The regulators thought 25% was enough. I, for one, didn't.

Continue reading Could 'liar loans' help bring back the housing market?

Google Checkout and QR codes may change the way you pay

Josh Smith Jul 6th 2010 @ 12:00PM EST Filed Under: Credit, Shopping, Technology, Credit Cards

Paying with your phone has long been a desire of shoppers and like many of our desires, Google might have the answer. A new extension released this week from Google makes it possible for shoppers to use their Android mobile phone to make a payment through Google Checkout.

The Android Payment Chrome Extension allows a shopkeeper to populate their storefront with items and send a shopping cart to the customer's Android powered phone with a QR code. QR codes are a special type of bar code that can be easily created on a computer and then scanned with a smartphone camera. From there, the customer completes the purchase using the credit card they have on file with Google Checkout.

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Apple iTunes account hacks reported; protect yours

Sarah Gilbert Jul 4th 2010 @ 6:17PM EST Filed Under: Credit, Technology, Fraud

Early Sunday, suspicious activity in the Apple App Store prompted customer complaints and technology sleuths to discover an inexplicable rise in sales of Vietnamese-language books, seemingly pirated, in both the App and Apple iTunes stores. The hackers, burned customers reported, were hijacking their accounts and purchasing a large number of these apps, resulting in charges between $40 and $600 to their accounts. Those whose accounts were linked to prepaid Apple gift cards got off the easiest; many with accounts linked to debit or credit cards were left without immediate recourse.

As the Apple customer support phone lines were closed for the holiday weekend, customers who reported fraudulent activity were left sending emails to the company in frustration. Technology sites reporting the hack reports began recommending customers take protective action, including checking iTunes previous purchases for unauthorized activity; changing iTunes account passwords; and finally, disabling bank account information from your account. For iTunes accounts, until Apple follows up with some public comment to address this issue, the safest approach seems to be using only prepaid iTunes gift cards, which will limit exposure.

Some customers who reported hacks before the holiday weekend said they were told by Apple customer support that they must take fraudulent purchases up with their bank; in many cases, when purchases are approved via debit card, customers will first suffer the repercussions of the money clearing the account, and possibly overdraft fees or bounced checks, before the charges are reversed. In addition, because the app developers all appear to be in Asian countries, it is unlikely U.S. or British law enforcement will have the ability to prosecute the suspected fraudsters. For now, the very safest route seems to be to choose "none" as payment method under your iTunes account.

Top-ranked female financial adviser offers advice to WalletPop readers

Vera Gibbons Jul 2nd 2010 @ 4:00PM EST Filed Under: Credit, Debt, Family Money, Career, Recession, Retirement Advice

With concerns rising that the economic recovery is stalling, and that we're at risk of slipping into a "double dip" recession -- when the economy shrinks, grows, and then goes back into reverse -- it's no surprise that one of three Americans are losing sleep. But did you know what we're spending 3.5 hours a day worrying about our financial troubles?

One of Barron's top-ranked "Women Financial Advisors," Ameriprise Financial's Geri Eisenman Pell, CFP, MBA, provides some insight -- and advice -- as it relates to the key financial issues that are robbing Americans of their all-important zzzzz's.

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An easy primer on understanding and raising your credit scores

Lynnette Khalfani-Cox Jun 30th 2010 @ 6:15PM EST Filed Under: Credit, Credit Reports

Having super-high credit scores can make your financial life a breeze - helping you earn a VIP pass to the best interest rates and terms on credit cards, mortgages and loans of all kinds. A stellar credit rating can also help you land a job or a promotion, save money on insurance, and get approved for that apartment or condo you want to rent. Despite all these benefits, however, most people understand precious little about credit scores, how they work, and what can be done to improve them.

To help you get up to speed fast, here's a quick primer on credit scores, based on eight common credit questions:

1. What exactly Is a FICO credit score? FICO scores get their name from Fair Isaac Corporation, the Minneapolis-based company that creates FICO scores. All FICO scores range from a low of 300 points to a high of 850 points. While there are various types of credit scores in the marketplace, FICO scores are the most popular, with more than 90% of top banks in America using FICO credit scores when checking a consumer's credit history.

Your credit score serves two purposes. First, it summarizes how well you've handled past credit obligations by giving you a three-digit credit score, which is the equivalent of a financial grade. Additionally, your credit score tells prospective lenders how likely you are to repay (or default on) credit or a loan in the future. The higher your credit score, the more statistically likely you are to repay your bills on time. The lower your score, the more likely you are to pay late or default on a debt.

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