DEVELOP A WORLD-CLASS BRAND ON A SMALL BUSINESS BUDGET – Pueblo Chieftain: Community

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DEVELOP a WORLD-CLASS BRAND ON a SMALL BUSINESS BUDGET

Tuesday, May 22, 2012, 5:30 pm – 7:30 pm

Join The Small Business Development Center and ENT Federal Credit Union for the monthly seminar series workshop.    

EVERY business has a brand, good, bad or indifferent. once defined and fully understood, you can begin capitalizing on it to create and build your unique competitive advantage.

LEARN… The SECRETS of how your customers REALLY make buying decisions.

· Why the first 7 seconds of contact with your customers is integral to their buying decision and loyalty to you.

· Why your employee team holds the secrets to your brand success!

· How to enhance your brand’s overall customer experience without spending one dollar in marketing!

How do they do it? Follow best in class with these intriguing case study examples.

Sign up now for this fun, experiential workshop to   ignite your brand into WORLD-CLASS status.

Speaker: Suzanne Tulien, Co-Founder of the Brand Ascension Group

Please contact the Small Business Development Center with any questions or to register for the workshop. Phone: 719-549-3224, email: sbdc@pueblocc.edu, or register online at: events.constantcontact.com/register/event?llr=lmldmqdab&oeidk=a07e5v53ri817e3f1d0

Location: Pueblo Community College, GATC Building, Occhiato Theater

900 W. Orman Ave, Pueblo, CO 81004

Contact Info cost DEVELOP a WORLD-CLASS BRAND ON a SMALL BUSINESS BUDGET is a free event. details Website: coloradosbdc.org

A Tribe Turns to Its National Pastime

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BY JOEL MILLMAN

CROW AGENCY, Mont.—the scourges of drug addiction, teen pregnancy and school dropouts plague youth here on the reservation of an American Indian tribe, the Crow.

But on territory that is within sight of the little Bighorn Battlefield, Crow are betting big that a favored pastime will lift lives and spirits here—basketball.

the most striking landmark in this reservation town of 1,600 is the $10 million Health & Wellness Center, opened last November and financed through a federal tax-credit program. the building is leased to the tribe’s little Big Horn College, and tribal leaders hope a winning basketball program will draw …

BY JOEL MILLMAN

CROW AGENCY, Mont.—the scourges of drug addiction, teen pregnancy and school dropouts plague youth here on the reservation of an American Indian tribe, the Crow.

But on territory that is within sight of the little Bighorn Battlefield, Crow are betting big that a favored pastime will lift lives and spirits here—basketball.

the most striking landmark in this reservation town of 1,600 is the $10 million Health & Wellness Center, opened last November and financed through a federal tax-credit program. the building is leased to the tribe’s little Big Horn College, and tribal leaders hope a winning basketball program will draw …

SmartMoney Glossary:

Invest without a home country bias

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Rather than trying to invest in a few stocks, currencies or markets based on partial and selective wisdom attained through sensational news clippings or business channels one should look at building a solid diversified portfolio of funds.

Sensex has delivered annual gains of less than five per cent over the last five years. This makes the hunt for new investment avenues quite natural. over the last couple of years disenchanted Indian HNI equity investors have been moving away from equities to other asset classes such as commodities, real estate, debentures, direct Private Equity investments and so on. a plethora of of tax-free bonds issues such as NHAI and RECs last year further explains this phenomenon.

The quest for better returns have made Indian HNI investors evaluate offshore investment options to add alpha to their portfolios.

Empirical evidence suggests a strong home country bias in all investor portfolios, thereby restricting not only the objective of diversification but it also makes investors miss good opportunities outside the home country.

Prior to 2004, before Liberalised Remittances Scheme (LRS) was launched by RBI, capital controls were the first stumbling block for Indian investors to venture outside India.

Multiple avenues

Now there are multiple ways in which global exposure could be added to portfolio. one of them would be to use the $2,00,000 LRS mechanism to open an offshore investment account and build a portfolio for global Funds, stocks or ETFs.

The other easier and simpler way will be to take advantage of many feeder funds launched by Indian MF companies which use investments made in India in rupee to invest/feeds into a global fund.

The rationale of adding global investments in portfolio are plenty. Currency and geographical diversification giving opportunity to invest in economies and companies that do not have risk-reward characteristics like India is one of them.

The other significant advantage is the ability to invest in sectors/ themes which are generally not available in Indian markets. Agriculture, Oil, Internet/E-commerce, Water, etc, are some areas which have good potential, but do not offer investment vehicles in Indian markets due to sector-level regulatory restriction or lack of developed market for those themes.

Since it is impossible to predict which stock/fund/manager will do best in next one to three years, investors divide their investment between 4-5 good managers/funds. The same logic can be extended to r stock market for promoting geographical diversification.

Abysmal performance

Given its robust growth and favourable demographics, no analyst could have predicted India’s abysmal performance in 2011, both for stocks as well as currency. On the other hand, US markets grappled with slowing demand and credit squeeze.

But in 2011 when US markets delivered positive five per cent returns, India was down by more than 24 per cent. Add another 15 per cent or so for INR weakness and the strength of argument multiplies many folds.

Build solid portfolio

While there are many obvious merits of offshore investments, we should also acknowledge and be aware of the fact that the global investment world is lot more diverse and complex. hence, maintaining a disciplined investment approach is the key to success. Rather than trying to invest in a few stocks, currencies or markets based on partial and selective wisdom attained through sensational news clippings or business channels one should look at building a solid diversified portfolio of funds.

Another factor to avoid should be to steer away from fads and media hype. Current hype about Facebook IPO is the case in point. while I have no doubts of the power of social networking and the impact Facebook has made to millions of people’s everyday life, I am not adequately experienced to evaluate the business model, financials and future prospects for the company.

Hence, rather than taking a direct hit by buying share in IPO, I would rather invest in a US market or a technology fund and leave it on the judgment of fund manager on whether to invest and how much. we have seen many examples in the past where investors have rushed in for the trade based on media frenzy and were later left holding the hat when the music stopped. Silver trades in recent past are a good reminder of the same.

Preserving and growing wealth is not as difficult as creating or building it. An easy way to achieve this objective is to keep investment disciplined, simple and away from any exuberance. a share of global investments to the tune of anywhere between 10-15 per cent of portfolio is a sound strategy. in the current world of uncertainties and surprises, this is an investment principle which can benefit all investors.

(The author is Director, Wealth Advisory and Family Office Solutions, ASK Wealth Advisors Pvt ltd. The views are personal.)

How to Build Credit – The Easier and Faster Way

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The question as to how to build credit is paramount for people who have no credit. just as a side note, building credit is not the same as rebuilding or restoring credit. What’s the difference?

Well, building credit means that you have never obtained any form of reportable credit or loan. your credit file is either shows no activity or is non-existent. it can also mean that your credit is slow and needs to be built up. In other words, you’re starting from scratch or near scratch.

Rebuilding, restoring or repairing credit means that you previously had established some form or other of credit, but now you have negative items on your report, along with the commensurate low score. In other words, your history is tainted or damaged.

This article addresses the first two situations (starting from scratch or near scratch).

Everyone needs to start building credit at some point – that is unless they have chosen a hermit or other atypical lifestyle. and the good thing is, starting out isn’t that difficult.

Getting approved for that first credit card can seem like an overwhelming task. When you apply for first time, they check to see if you have credit (a catch 22 of sorts).

But today some lenders make it easier for your first time. If you have applied for a few credit cards and were turned down, don’t worry. A little change of strategy will almost certainly put plastic in your wallet in no time.

One common mistake that people tend to make when applying for credit cards is applying for the incorrect card, that doesn’t fit their situation. The major cards like Visa, Master Card, American Express and Discover can prove difficult to come by for the first time card applicant.

But finance cards are much easier to get. Finance cards are issued via a store or franchise, and can only be used at that business or its affiliates. some finance cards, for example, include Target, Best buy and Sears cards.

Other easier to get credit cards are those issued by gas companies.

Though finance cards do not carry as much importance on your credit report as a major credit card, they are a good way to start out. it shows responsibility for a new card holder.

College students are luckier in that sometimes get credit card offers at school, often from more reputable companies with better rates and conditions. The companies even offer incentives such as free lunch for applicants. Why do they do this?

Because a college student is likely to get a well-paying job once they graduate. The company is investing in you today to get your business tomorrow.

If you still find it difficult to get a finance credit card you may want to consider a secured credit card.

Secured cards are issued based upon a deposit you make as the credit limit. it may sound strange to some to pay $500 to get a limit for a $500 credit card, but a secured card can be a major positive impact on your credit report.

When applying for a secured credit card, keep two things in mind: that the card will still report your credit limit and, depending on the creditor, the card might not show up as a secured on your credit report.

It is essential the issuing company reports your credit limit. This is because of the way credit scores are calculated. To score well, your debt to limit ratio should be less than 30% on revolving accounts.

Also note that if your secured card doesn’t report the credit limit, the credit reporting bureaus will use the total amount charged as the credit limit and this will look as though your debt to limit ratio is 100% (not good).

Additionally, it is extremely important to make sure your card is not reported as a secured. ask before signing on the dotted line. If your credit card company reports your card as being a secured card, this will impact negatively on your overall score.

Another way to go is by taking up offers of pre-approved cards that come via junk mail. The downside with these is that the limits offered are usually low ($300 on average) and there are upfront and annual fees involved. The upfront fees can eat up your most of the allowed limit therefore you end with an almost fully secured credit card.

If you choose to go the pre-approved way to build your credit, be aware that some of those companies have been known for some questionable business practices and even trickery. Read the fine print carefully or ask a knowledgeable friend for help.

A wide angle view

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Ace photographer D. Ravinder Reddy a good photojournalist should not worry about permission, respect and restriction but focus on capturing the moment

It is futile to prepare questions for an interaction with a photojournalist who is also a wedding photographer specialising in portraitures and has four books on photography to his credit. His abundant experience and the stories that he gathered needs no prodding. D. Ravinder Reddy made photography his passion and profession at a time when parents refused to look beyond engineering and medicine as a career choice. having spent a lifetime chronicling events and people, he now has his own studio and gallery and nurtures the dreams of many young photographers in the city. he still finds time to go in search for a muse with his camera, though.

Life size photos taken by him line the walls of the staircase leading to his studio. The studio is bustling with activity with people engaged in editing, cropping and framing. As he begins to recount his early brush with photography, stories, funny anecdotes and thoughtful observations keep pouring out.

“My first camera was Agfa Isoly a gift from my father. I was in standard X and my father even suggested I join the photography course in Jawaharlal Nehru Technological University (JNTU) later. But I was too young to take career decisions then,” says Ravinder Reddy. during his graduation days he came across a bank employee in his neighbourhood who had a darkroom and experimented with condensers and enlargers. “I used to wait outside his gate until he came home and observe him work in the darkroom until he started avoiding me,” he adds with a smile. Family pressure drove him to take up M.A English literature in Ujjain but he continued with his passion, taking passport photographs of his friends until his professor and vice chancellor of the university noticed his work. “My professor wrote a letter to my father very categorically stating that my real talent lies in photography and not academics and I should be encouraged to pursue it,” he says as he shows a framed picture of the letter which he has preserved.

A proud owner of Zenith camera, he then enrolled in photography course in JNTU. “I used to go in and around Charminar everyday starting at six in the morning and take photographs,” he says. during his college years he also started working with a local newspaper and then slowly moved on to freelancing for news magazines and papers. The photojournalist traces his journey and says, “My first major assignment was covering the Babri Masjid demolition in 1992 and an interview with Kondapalli Seetharamaiah, the late communist leader and the founder of the People’s War Group of Naxalites and the Latur earthquake in 1993.”

He has plenty of stories to narrate from his adrenaline-filled days. “It was high tension situation. Lakhs of people had gathered around the Babri Masjid demolition site. I saw a naga sanyasi sitting on a tiger skin and waving his trishul in the air. It was a magnetic site, I wish I had the time to take his picture,” he rues. It was also the first time he was saw his idol Raghu Rai in action.

A photojournalist is often asked ethical questions like where does one draw the line between voyeurism and news? What comes first a good picture or saving lives? Ravinder Reddy, however, simplifies the dilemma, “during the Latur earthquake, there were thousands of bodies buried waiting to be recovered. I had to immunise myself to take pictures so that the rest of the world could realise the intensity of the devastation. Of course, I would help people but my duty first is to capture the situation.”

After a life threatening accident, he started taking up more editorial photography, portraits and photo series. “News photography is physically demanding and you need tremendous energy,” he says. “with editorial photography you have time to build up your photographs,” he adds though photojournalism remained his first love.

He has done photo shoots with Telugu film actors like Ram Charan, Mahesh Babu, Allu Arjun, Junior NTR even before they became stars. The photographs capture their vulnerability and eagerness, a stark contrast to the larger than life image that they portray now. he also claims to have taken the only smiling picture of TDP leader Chandrababu Naidu and was the first one to release the picture of the helicopter crash of the late chief minister Y.S. Rajasekhara Reddy. “you can’t be a photographer and still have doubts about privacy and respect. These thoughts restrict your mind. you have to take fast decisions or else you miss the moment. you have to be fearless. How else will you capture a candid moment?” he questions in his own disarming way. he also brings latest technologies like Giga panorama in his works which successfully captures even the minute details of wide angle shot and feels internet is an important medium to learn photography.

Ravinder Reddy feels that it is a good time to learn photography but he says just a DSLR camera and a fancy lens will not make anyone a good photographer. “Visualisation is important,” he says. “Camera is only a tool but a photographer must have a vision in his mind as to what he wants to capture. It is a process which comes along with learning, experience and good communication skills,” he advises. It is with this philosophy that he started his photo gallery and studio. “Painting is cheaper than photography. Camera, frames and print are expensive. I want artists to be able to maintain their freedom of expression through this gallery,” he says.

Just like Henri Cartier Bresson had said “I’m not all that interested in the subject of photography. Once the picture is in the box, I’m not all that interested in what happens next.” Ravinder Reddy says, “The search is the success. The hunt for that perfect shot defines success and not the final outcome.”

Preserving memories

D. Ravinder Reddy feels that Indians are quite poor when it comes to documentation. “There is hardly any pictorial documentation of people and places by the Indians,” he says. that is when he started compiling his pictures in books taking inspiration from Raghu Rai. His first book was India – Andhra Pradesh for which he received the incredible India Award and the National Tourism Award. His next book was dedicated to the city titled Hyderabad – Portrait of a City. he has also worked extensively with the weavers of AP and published his works in Threads of Hope – Handloom Textiles of Andhra Pradesh and a pictorial book on Y.S. Rajasekhara Reddy. he is currently working on a book on Tirupati.

BANKING: Payday lending growing among banks

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If a 365 percent interest rate on a $400 quickie loan sounds like a scenario from one of the storefront payday lenders lining Inland streets, think again.

High-cost, short-term advances are being offered to cash-strapped consumers by a growing number of U.S. banks and credit unions, and consumer advocates fear more are on the way.

These so-called payday loans are often considered something to avoid because the two-week terms, balloon payments and big fees create effective interest rates that run well into triple digits and contribute to what consumer advocates call a “debt trap.”

The National Consumer Law Center, a nonprofit advocacy group, issued a warning in August that payday lending was on the rise among major U.S. banks. Cincinnati-based fifth Third Bank and Regions Financial Corp. in Birmingham, Ala., among the recent entrants to a market that already includes San Francisco-based Wells Fargo and Minneapolis-based U.S. Bancorp, both of which have Inland operations.

Advocates say some smaller banks are starting to offer deposit-advance products, too. Lauren Saunders, managing attorney in the law center’s Washington, D.C., office, said banking industry consultants are touting payday loans to bankers as a way to make up for revenues lost due to limits on overdraft charges and the swipe fees charged to merchants for credit card payments.

There are other signs of a trend. the Office of the Comptroller of the Currency proposed guidelines last year for reining in bank payday loans, citing concerns that some banks are taking advantage of their relationships with customers.

The regulator wrote in the guidelines that a small but significant number of banks were offering deposit-related loans “without proper attention to these risks. In some cases, these program weaknesses are strikingly apparent.”

Wells Fargo’s Direct Deposit Advance has been around since 1994, offering customers short-term loans of up to $500 for a flat fee of $1.50 for every $20 borrowed. Borrowers must have direct deposit of a paycheck or other means of support to qualify; the loan is repaid automatically when their next check hits the bank.

Wells Fargo spokeswoman Richele Messick said the loan “is an expensive form of credit, and it’s not intended to solve longer-term financial needs.” But it differs from a standard payday loan in a couple of key ways, she said.

An unpaid balance cannot be rolled into a new loan, and customers cannot get a new loan until the last one is repaid, Messick said. and the loan provides transparency because the fee is fixed, regardless of whether the money is being advanced for three days or for a month, she said. “They understand, up front, what advancing them $100 is going to cost.”

But consumer watchdog groups say the fixed-fee structure hides the real costs of the loan.

A 10-day, $400 loan from Wells Fargo, for example, carries a $28 fee. That’s an effective annual interest rate of 274 percent. Rates for other major banks run even higher. many bank loans have hefty late fees, and because banks have control over customer accounts, payments are automatic, which means customers risk overdraft fees if there isn’t enough left to cover other financial obligations.

A study last year by the Center for Responsible Lending found that the average bank payday-loan customer takes out 16 loans and had stayed in debt for 175 days out of the year.

Saunders said an affordable small-dollar loan should carry an annual interest rate of no more than 36 percent including fees, and installment plans that enable borrowers to pay back the loan in small pieces.

“They need to do it on affordable terms. If they can’t, they shouldn’t be offering” the loan, she said.

Messick said restrictions built into Wells Fargo’s deposit advance help prevent long-term issues. for example, after six consecutive months of advances, the bank starts reducing the maximum loan amount by $100 each statement cycle until it reaches zero.

The bank offers an alternative payment plan over a longer period, Messick said, and a new rule will limit automatic withdrawals to ensure a $100 cushion remains in customer accounts to cover other needs.

Greg Larsen, a spokesman for the California Financial Services Providers Association, said the payday loan industry welcomes legitimate, government-regulated competition because it gives consumers more choices in the marketplace and helps prevent them from turning to unregulated online lenders operating overseas.

“We believe consumers can make the best financial choices for themselves, knowing their own personal situations,” Larsen said. “The vast majority of payday loan customers use the products responsibly to handle a short-term cash shortfall by paying back their loan on time and moving on.”

Saunders said the entry of banks into the payday loan business is helping to legitimize “a very dangerous product.” Consumers who would know to stay away from fast-cash storefronts may be more willing to use similar products offered by banks, she said, but the bank products can get them into the same trouble.

MORE REASONABLE RATES

An increasing number of credit unions are offering short-term loans, too, although Saunders said many of those fall more closely in line with responsible lending practices.

At the end of last year, 390 federally chartered credit unions were offering small, short-term loans, according to data from the National Credit Union Administration. That’s up from 287 in March 2011. Twenty-four California-based credit unions were on the list.

San Bernardino School Employees Federal Credit Union offers one-month loans of $200 to $500 that carry a 28 percent interest rate and a $20 application fee. that means a $200 loan would cost about $225.

With the fee, the effective annual rate is about 148 percent — still high, but cheaper than the alternative, said David Justice, lending manager.

The loan is intended “to keep our members away from the payday advance companies, to help them get out of that whole ugly cycle that they get into,” he said.

The Inland credit union avoids the cycle by limiting members to three short-term loans in any six-month period, he said. There’s no late fee, and if members default on a loan, they are ineligible for another for six months.

John Zimmerman, a spokesman for the credit union administration, said changes were made in 2010 to create a structure for credit unions to offer the loans.

“There was an established need for an alternative way for people to be able to access money for the short-term without paying exorbitant interest rates,” he said. “So you give people a chance to get a loan, pay it off, where the goal is to help the person build up their finances so they don’t necessarily need a short-term loan.”

The Prepaid Debit Card Comes of Age

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More than 1 in 8 American consumers now carry reloadable prepaid debit cards, according to a new report from Javelin Strategy & Research. Stronger rewards, cheaper fees, and changing attitudes about traditional banks all contributed to the growth of prepaid debit, even during a period that saw many banks shrink the number of their traditional checking, savings and credit card accounts.

In October, Javelin commissioned researchers to interview more than 3,000 Americans about how their use of prepaid debit cards has changed over the past few years. in the process, the research team gained insight into how consumers choose prepaid cards from an increasingly crowded field. Beth Robertson, Javelin’s director of payments research, told CardRatings.com about her team’s findings.

Online purchasing drives adoption of reloadable debit cards

More than half of underbanked respondents told Javelin’s research team that they used prepaid debit cards for routine online purchases. E-commerce remains in its infancy, mainly because of issues of access and security. Reloadable prepaid Visa, MasterCard, and American Express accounts let underbanked Americans convert cash into online currency, while shielding traditional bank accounts from online fraud.

“E-commerce is only about 6 percent of retail spending,” Robertson says, adding that retailers and banks have a long way to go before they master this emerging market.

In the meantime, successful card issuers have turned reloadability into an opportunity to foster long-term customer loyalty. Instead of burning one-time-use debit cards, Robertson says, more Americans are reloading the same accounts. Over time, that trust can grow to the point where customers consider using more financial services from their debit card issuers.

Building new banking relationships without bank branches

“Underbanked” consumers make up a growing segment of the American population, according to Javelin’s findings. “More people are coming into the country with less of a relationship with traditional banks,” Robertson says. “They’re less inclined to open a checking account because they’re comfortable with other means of managing their money.”

Other frequent debit card users include consumers whose struggles during a sluggish economy have forced them to seek alternative ways of cashing paychecks and paying bills. Debit cards have also sprouted in the wallets of young Americans. Unable to get credit cards until age 21, more Generation Y consumers rely on debit cards for routine money management.

Prepaid cards offer banks a shot at building youth loyalty

Javelin’s research tracked the growth of prepaid debit cards that offer features similar to most checking accounts. Robertson cites features like bill payment, online account management and linked savings accounts as reasons why prepaid card customers might consider abandoning checking accounts. “There’s a generation of younger consumers relatively unfamiliar with writing checks,” Robertson says.

Some traditional banks intend to use prepaid cards as a path to build loyalty with that younger generation. USAA, U.S. Bank and ING Direct (now a Capital One subsidiary) all offer prepaid cards that parents can issue to their children. Parents can reload funds remotely, while children get comfortable with putting a branded debit card at the center of their financial lives.

Mobile phones define money management styles

Just as Gen Y has taken money management paperless, underbanked Americans rely more heavily on mobile phones than on computers to keep track of their finances. While only 39 percent of underbanked consumers reported having access to high-speed Internet access, more than two-thirds of them own either a smartphone or a feature phone capable of online account management.

“Consumers are integrating prepaid purchasing into their retail visits,” Robertson says. While Javelin’s study didn’t track the correlation between prepaid debit cards and prepaid mobile phone services, respondents did report reloading both services during trips to retailers. Robertson notes that the trend validates retailers’ attempts to grow loyalty by offering broader services, especially at supermarkets and drugstores.

Experiences matter, but fees still weigh on prepaid users

Just as rewards credit cards have leaned on exclusive experiences to build their portfolios, prepaid debit cards use celebrity endorsements and lifestyle associations to attract new customers, Javelin’s report concluded. Robertson cites debit cards from Russell Simmons and Lil Wayne as examples of accounts that have justified higher fees by offering merchant discounts and other special member perks.

Criticism of high fees drove the Kardashian Kard off the market, showing that celebrity cachet can be trumped by fees that consumers perceive as unfair. With mounting pressure from the Consumer Financial Protection Bureau and consumer advocates, many debit card issuers have taken a proactive approach to communicating fees up front. Javelin’s report added that most issuers have brought their fee structures in line with those of entry-level checking accounts, strengthening their position as alternatives to traditional banking.

Rewards and relationships driving prepaid debit card adoption

Loyalty programs will help determine which prepaid debit cards succeed long term, Javelin’s report revealed. Survey respondents told researchers that a strong rewards structure can offset service fees, much in the same way that consumers look past annual fees when selecting cash back credit cards.

“Merchants now want to drive rewards programs to establish greater loyalty,” Robertson says. She cites Green Dot’s recent purchase of location-based social media network Loopt as an example of a prepaid debit card issuer preparing to enhance its rewards network. “Merchant-funded loyalty programs reduce the cost of supporting rewards fulfillment,” Robertson says.

American Express bullish on the underbanked

Federal caps on most debit card transaction fees drove many traditional banks away from the sector. however, American Express runs its own payment processing network and keeps its debit cards separate from traditional bank accounts. Therefore, American Express can bill merchants the same fees for processing its debit cards as it does for charge card and credit card transactions.

Javelin’s report indicated that American Express has combined this potential profit margin with its brand equity, creating a distinctive prepaid debit card that appeals to online shoppers. the company launched a series of fee-free debit cards that customers can reload online. Meanwhile, AmEx rolled out its “Bluebird” debit card in partnership with Walmart, encouraging cardmembers to reload at any of the big box retailer’s stores.

“American Express, for so long, has been viewed as an elite organization in terms of focus and product set,” Robertson says. they “still have that panache,” she adds, which Javelin’s report indicated is fueling the company’s significant growth in the prepaid debit card market.

Prepaid debit card issuers campaign for credit reporting

American Express can promise its customers something that no other issuer has achieved: the ability to convert an American Express prepaid card into a traditional charge card or credit card. under a program American Express calls “Make Your Move,” the company promises to determine eligibility for other accounts based on prepaid users’ spending habits.

AmEx’s competitors have expressed their desire to see payment patterns reflected on credit reports, Robertson says. Russell Simmons made the connection in the early days of his RushCard, and Suze Orman has promised that her Approved Card will report key spending information to TransUnion.

“The traditional credit score has been based on the FICO model for years, but consumers are expressing a need to move beyond that. for banks, this is a new way of thinking about assessing risk,” Robertson says.

But the underbanked have relied on this kind of in-depth reporting for years. An applicant without traditional credentials “could get a loan from a non-bank provider by offering records of rent payments and utility bills,” Robertson says. As traditional banks extend their business outside branch walls, the market may require them to adopt a more flexible definition of customer service and credit approval.

The original article can be found at CardRatings.com:The prepaid debit card comes of age

FBI faces uphill battle as you unknowingly could be one of millions with an infected computer

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CLEVELAND – here, I thought, is one area where Hollywood has it right.

Deep in the heart of the Cleveland division of the FBI is the Emergency Command Center. It’s a room with a bunch of tables, a series of computers and phones on each one, and lots of big screen TVs on the walls. You’ve seen rooms like this on “24” and “The Bourne Ultimatum.”

When the FBI conducts an operation in the world – a raid or arrests – the operation actually happens in two places at once. while agents are in the field carrying out the operation, there are agents back at the bureau monitoring it. the agents in house and in the field are often on video and audio feeds.

This room serves a specific purpose. the Emergency Command Center ensures agents and analysts are all on the same page. They need to be, because operations are happening in real time. They are all communicating, which is the most critical factor during an operation. Lastly, the chain of command is active so orders and feedback are instantaneous.

Special Agent in Charge of the Cleveland bureau, Stephen Anthony, said they even use microwave technology for live signals from the field back at the base.

I thought I could relate to that.

I’m in the FBI Citizens’ Academy on behalf of my position with WEWS Cleveland. As a show producer, I’m in the control room of the TV station with a headset on, talking with live crews in the field and the show’s director to make sure communication and chain of command are intact during live shows on NewsChannel5.

The Cleveland FBI uses this room about once a week for operations. in fact, one of the most recent times it would have been full of agents on the phones, watching the live feed on the TVs and sharing data on their computers, was the arrest of five suspects accused of plotting to blow up a bridge in Brecksville.

Although, in full disclosure, this room was brightly lit. On “24” and “The Bourne Ultimatum,” those agents operated in moody, grim, pitch black rooms. (Our control room at work, though, is dark. But, I am in the TV biz after all.)

The Cleveland FBI uses the Emergency Command Center on potentially violent operations, such as kidnapping cases, or for arrests in more traditional cases, like white collar crimes.

“White collar crime was generally the bread and butter of any FBI office,” said Special Agent Derek Kleinmann, who specializes in such investigations.

These crimes can consist of mortgage rescue schemes, commodities and securities fraud, questionable hedge funds, market manipulation, investment fraud and insider trading.

Who are these criminals? They all aren’t high profile monsters like Bernie Madoff, but they have a lot in common with him.

We’ve seen white collar crime dramatized in movies like “Wall Street” or on shows like “Damages” and, well, “White Collar.” Kleinmann said one thing Hollywood has right about white collar crime, the motive is always the same. Greed.

One similarity is opportunity; these people most likely work at a financial company and simply have the ability to exploit other people’s money.

Another factor is the cause; some incentive or pressure drives these people to fraud, and it’s usually some pressure in their personal life.

The last factor is their rationalization. Growing up, we all learn stealing money is wrong, but the white collar criminal may tell himself that no one is really getting hurt. Kleinmann said, many people tempted with money may try anything if they don’t have someone over their shoulder.

The reality is that these crimes do hurt people. Kleinmann said the hardest part about his job is having to tell some grandmother that her life savings is gone. And there’s no way to get it back.

How rampant is white collar crime? There are probably about 200 FBI agents who can handle these type of investigations. for perspective, there are about 200 hedge fund firms in new York City alone.

“I was blown away by how much fraud there was,” Kleinmann said.

The only thing more rampant that white collar fraud might be cyber crimes.

“We’re always playing catch-up,” said Special Agent Joe Russ, who specializes in cyber crime investigation.

The Internet Crime Complaint Center released just released its internet crime report. in 2011, there were more than 314,000 complaints about online criminal activity. That’s a 3.4 percent increase over 2010. at least, 7,304 of them came from Ohio.

Once these crimes are laid out for you, they’re quite terrifying. Russ said, if you have an electronic device, anyone can reach into your home. Cyber crimes are simple, low cost, they can happen fast, and the criminals can almost bank on anonymity.

In fact, novice cyber criminals can simply search and download hacking programs online.

Cyber crimes can be performed in a variety of ways, including phishing, spam, and spyware.

More than two million computers are infected with keylogging software. Keylogging is when spyware program logs every keystroke you make. Eventually, you will pay a bill online or buy something on eBay or

Credit care: Secured card, loan may help rebuild score

Category: how to build credit score | Response: 0

Q: for 32 years I had excellent credit. but, like other folks, things went downhill. we had our home repossessed and could not make all the credit card payments. Our attorney advised us to file for bankruptcy, so we did. I have tried to rebuild my credit since then. I have been turned down by two different bank cards several times each. we now have a debit card, but when do you get a chance to show the banks that we are seriously trying to get our credit score back up?

A: Rebuilding a positive credit history after a bankruptcy takes time and patience. because you did have excellent credit for many years before the bankruptcy, you know what it takes to manage your credit successfully. what you need now is credit to manage.

Since you have been declined several times for bank-issued credit cards, you may need to start with a secured credit card. These cards are secured by your own personal deposit in an account with the bank that issues the card. you can use the card just as you would any other credit card. More important, the card issuer may report the card to the credit bureaus, which will help illustrate to potential creditors and any other persons reviewing your credit report that you can manage a credit card account.

Not all secured card issuers report to the credit bureaus, so be sure you choose a card that reports to all three major credit bureaus. To ensure that the card helps to build the credit history that you will need to improve your credit score, use the card every month and make all monthly payments on time and as agreed.

Another option for you to rebuild your credit is a passbook savings loan. Much like a secured credit card, these accounts are secured by a deposit from you at the bank issuing the loan. you repay the loan with a regular monthly payment for a typical term of two years. again, when shopping for this type of loan, ask whether the lender reports the loan to the three major credit bureaus. To achieve the goal of rebuilding credit, the loan must be reported.

With both a secured credit card and a passbook savings loan, your credit report will reflect a positive payment history for revolving and installment accounts. Regular, on-time payments as well as a variety of positive credit accounts reflect well on your ability to handle credit. Handle them well and your credit report will, in time, increase your credit score.

Last, to help avoid problems moving forward, I encourage you to save at least six months’ worth of current living expenses in an emergency savings fund. When unexpected expenses or interruptions of income occur, you can pay for them with your savings, rather than relying on credit cards.

Tanisha Warner is the communications manager for Money Management International, the nation’s largest accredited credit-counseling firm. She answers readers’ questions for creditcards.com

Electricity Bills: Yet Another Reason to Maintain Good Credit

Category: what is good credit | Response: 0

It’s an unfortunate reality that once you find yourself in financial difficulty the effects of bad credit can snowball your financial hardship. Poor credit doesn’t just keep you from getting a loan. it often means you will pay more for everyday necessities such as insurance and utilities.

Texas is a deregulated electricity market which means that in most parts of the state consumers can choose from multiple retail electric providers. when electricity deregulation came to Texas existing monopolies were split up creating a system where separate entities became responsible for various aspects of the production, distribution, and sale of electricity. the key players are the electricity producers, the lines companies that maintain the infrastructure, and the retail electric providers who deal directly with the end consumer.

the retail electric provider must pay for the electricity it receives from the electricity producer regardless of whether the end consumer pays their electricity bill. In this way they are not much different than traditional retailers like department stores. They buy electricity at wholesale rates and resale it at retail rates. Generally their margins are fairly small and too many unpaid bills by their customers can have a real impact on their bottom line.

People who have good credit can usually find an electric plan with a good rate without having to put down a deposit. People with no credit or poor credit histories, however, will often be rejected by electric providers or asked to provide a deposit. No deposit electricity plans are available from some companies. such plans usually feature higher rates but they have the benefit of requiring no credit check as part of the signup process.

Why electric companies often demand a deposit

There are two primary risks the retail electric providers must manage; rate risk and default risk. Wholesale electric rates in Texas are not fixed. They can fluctuate substantially hour by hour depending on the current demand for electricity and the current supply of available power in the grid. It’s important to note that although wholesale rates or not fixed there is a cap.

Retail electric providers sell fixed rate plans to consumers with terms of anywhere from six months to up to as much as 36 months. if wholesale rates go up in the short term they can’t immediately pass the extra cost along to their consumers. To protect themselves from that risk they must factor in adequate margins when they price their fixed rate plans to consumers. They must also adequately hedge their exposure to the wholesale electricity market.

the second major risk electric companies deal with is the risk of customers not paying their electricity bills. when this happens the electric company takes a loss on the electricity that they purchased from the producer to provide to the end consumer. this is why many providers focus on so heavily on credit scores. In general, the assumption is that lower credit scores mean higher risk of nonpayment on electricity bills. some companies are able to offer no credit check electricity plans by charging a higher rate to account for the added risk.