February 15, 2012

Current averages:

• Average consumer credit card rate, overall market: 16.88 percent
• Average consumer non-rewards credit card rate: 14.91 percent
• Average consumer rewards credit card rate: 17.73 percent
• Average student credit card rate: 17.06 percent
• Average business non-rewards credit card rate: 14.74 percent
• Average business rewards credit card rate: 15.69 percent

The US bank prime rate remained at 3.25 percent. This rate has now been unchanged for over three years; based on Federal Reserve data going back to the late 1940s, this now marks the second-longest stretch with no change in the bank prime rate. From September of 1960 through November of 1965, the bank prime rate remained unchanged at 4.5 percent, a stretch of over five years. Based on statements the current Fed has made about keeping interest rates low through the next couple of years, the current streak may yet grow to challenge that record.

In contrast, credit card rates were not at all stable in the first half of February, with significant increases in both co…………… continues on Fox Business

Since lenders have tightened their loan requirements, there has been much concern about credit. Unfortunately, many borrowers do not have the correct information about how credit scores are evaluated, according to professional credit specialists.

“Certain facts about credit will affect you and any financial decision you make or are about to make, so it’s important to have the correct information,” says Julie Macc, a certified credit and identity theft specialist with the Century Law Group.

Macc notes your credit score is based on the following components: past delinquencies, 35 percent; debt ratio, 30 percent; average age of file, 15 percent; mix of credit, 10 percent; and inquiries, 10 percent. She asked members of the Silicon Valley Association of Realtors to share with their clients the following top myths about these components and how credit scores are evaluated.

Myth No. 1: It is good to pay your credit card balance in full. If you pay off a balance and leave a zero balance account, you will have no payment history. After six months, some companies look at it as an inactive account, which can be closed due to inactivity. It is best to leave a small balance every month (ideally 1 percent) to show you can pay on time.

Myth No. 2: I don’t need to check my credit because I pay my bil…………… continues on San Jose Mercury News

Researchers are working on an on/off switch for the next generation of credit cards. No, not to stop you from spending money you shouldn’t, but to help protect you from theft and fraud.

Credit cards are moving away from magnetic strips to more modern, no-contact technology. Now, with radio frequency identification (RFID) chips or near-field communication (NFC) cards, you can just wave your credit card in front of a reader to quickly pay for a cup of joe.

However, this ease could open up the doors for a new type of criminal. In theory, shady characters with portable scanners can read the information off your RFID card by getting close enough to get your card in their reader’s electromagnetic field. This type of theft hasn’t taken off yet, due to clunky technology and minimal monetary gain (most RFID and NFC cards have low spending caps), but an on/off trick could be a smart preventative step.

Researchers at the Pittsburgh Swanson School of Engineering are working on a simple new technology that would require customers to place their finger on the card to turn it “on” when they pay. When you place your finger on a specific spot on the card, say a logo or icon, it would complete a circuit and enable readers to c…………… continues on VentureBeat

By Amy Calder acalder@mainetoday.com
Staff Writer

WATERVILLE — A man who racked up nearly $ 4,600 in charges on a stolen credit card is under arrest after police found him Wednesday in a motel with a homeless woman and four hungry children.

The man, Chad Gilley, 38, told police he found the card on the floor of a convenience store and used it in Waterville over the weekend to buy food, clothing, lottery tickets and a hotel room, according to police Chief Joseph Massey.

Massey said he was angry that the children, ages 6 to 11, had not eaten breakfast when the family was picked up by police late morning Wednesday. Police fed the children, who played games and watched children’s programs on television for about six hours until the state Department of Health and Human Services came for them.

“The worst thing about this case is that we had four children here, who I can call victims, to be hauled around all weekend … by this…………… continues on Press Herald

NEW Y…………… continues on BusinessWeek

According to federal court records, Chapter 7 bankruptcy filings outnumbered Chapter 13 filings more than two to one during 2011. Home foreclosures and insurmountable medical bills topped the reasons why many Americans are seeking this last resort for debt relief. Even if you’ve been dutifully paying your credit card bills every month for years, defaulting on another debt means saying goodbye to premium perks and platinum status.

Because predatory lenders scrape names and addresses from courthouse records, you’ve probably received mail solicitations from banks you’ve never heard of. They hope you’re willing to tolerate spending hundreds of dollars in application fees, only to end up with an already-maxed out Visa or MasterCard. Instead, seek out only the credit cards for bad credit that can potentially help your credit score.

Prepaid debit cards offer convenience, at a price

It’s probably the only thing that could put Suze Orman, Russell Simmons and Kim Kardashian in the same categor…………… continues on Fox Business

Tara Steele | 2012/02/13  |

Bank says you’ve been pushing up daisies

South Carolina man, Arthur Livingston applied for a new mortgage, but was quickly denied as his credit report says, “File not scored because subject is deceased,” according to ABC News. Since May 2009 when he sold his home, Bank of America has been reporting Livingston as deceased to the credit bureaus and even after months of local media attention, the error has not been repaired and continues to plague him.

Bank of America still has not offered a solution, his mortgage company cannot obtain his credit score in order to give him a new home loan, and Livingston tells ABC News that he fears the inactivity on his credit will negatively affect his credit score. He notes that he regularly pays off all of his credit cards in full, sometimes thousands of dollars worth for work expenses.

A spokeswoman for Bank of America said the company is working with Livingston directly to “resolve this issue as quickly as possible.”

“It’s been a complete waste of time,” Livingston said, adding that he is not litigious, has been patient, but this process has been “inexcusable.”

Livingston is not alone

Livingston, his wife and two young children have been living in a rental home while they wait for Bank of America to repair…………… continues on AGBeat