At General Motors, they used to call their surging competitor "Mr. T," as if intimidated by a muscular rival who seemed able to seize market share at will. But Toyota suddenly looks pretty meek, thanks to a mystifying safety problem that has led to a huge recall, an unprecedented production shutdown, and an ugly dent in a once sterling reputation.
This corporate nightmare has mushroomed since last fall, when Toyota recalled about 4 million vehicles because of floor mats with a propensity to slip down into the driver's side foot well, potentially interfering with the pedals and causing sudden acceleration. Now Toyota has recalled an additional 2.3 million vehicles for a problem that sounds similar, but the company says it's different: faulty gas pedals that can stick if they become worn, causing--once again--sudden acceleration.
[See 15 cars fueling the auto recovery.]
Recalls aren't unusual. Here's what normally happens: The owner gets notified of the recall and brings the car to a dealer, where the problem is fixed in a day or two with no charge to the customer. But this recall is more confusing and far more draconian than usual. For one thing, Toyota announced the recall before there was a fix in place, so dealers didn't even know what to do if you brought them the car. Toyota implies that most of the recalled vehicles can still be driven safely, but it also offers these instructions for people who feel their car might have a sticky gas pedal: "The vehicle should be driven to the nearest safe location, the engine shut off, and a Toyota dealer contacted for assistance." Beyond that, Toyota has also issued some Dukes of Hazzard style maneuvers drivers should use if they're cruising along and the pedal does, in fact, stick, such as shifting into neutral or turning off the ignition (but don't take the key out!). Do they teach that in driver's ed?
If you're a concerned parent with a suspect Toyota, you could easily imagine that the gas pedal seems a little stickier than usual. And do what? Risk your kids' lives by driving them around in a death trap? Pull off on the side of the highway and call a taxi? Garage the car and rent something safe--at $300 per week--until Toyota figures out what's going on? Stressing out your customers like that isn't exactly the way to win repeat business.
The sales and production stoppage suggests an even bigger problem, with lots of legal liability. Toyota has stopped selling or building eight models, including the Camry, Corolla, and RAV 4, which represent more than 50 percent of its sales. That will cost Toyota millions, maybe billions, of dollars. It already ranks near the top in the annals of corporate meltdowns, and it's not necessarily over. GM, meanwhile, is poaching Toyota customers with special financing and other incentives, along with cars that go the speed you want them to.
[See 10 products that boomed during the recession.]
How did this happen? Toyota itself may not even know yet, and it could take months or years for the full story to develop. But Toyota's dramatic comedown isn't as sudden as it might seem. Some industry-watchers feel the saga has been building for years and may even have been inevitable.
In his 2009 book, How the Mighty Fall, business guru Jim Collins outlined five stages of decline that many big companies go through. Mostly he wrote about companies that lose their edge gradually, even imperceptibly, until thousands of tiny termite holes bring down the house. Toyota might qualify as an accelerated version of such a collapse.
Toyota has grown steadily into the world's biggest automaker, earning customer loyalty for the reliability and longevity of its vehicles. But problems have been slowly building. The T100 pickup sold in the 1990s failed to hit Toyota's usual mark for quality, with some critics complaining that it was an underpowered make-do truck that paled next to American counterparts. Beginning around 1999, thousands of Toyota owners complained about mysterious "sludge" buildup that wrecked their engines, prompting criticism that Toyota was growing too fast and skimping on quality; Toyota resisted the claims but settled a class action lawsuit brought by owners in 2007. Toyota owners have also complained about faulty head lamps on the Prius hybrid, and more than 100,000 Tundra pickups were recalled in 2009 for problems with rusting frames. On the business side, Toyota badly miscalculated when it built a new pickup plant in Texas, with sales far below projections.
[See 21 things we're learning to live without.]
Consumers have noticed. Surveys by CNW Marketing Research in Brandon, Ore., show that from 1997 to 2007, Toyota consistently ranked at the top for nonluxury car makers, neck and neck with Honda. For 10 straight years, consumers rated Toyota 9.1 or higher, on average, out of 10. In 2008, that rating slipped below 9 for the first time, and in the latest survey--which took place before the gas-pedal recall--respondents gave Toyota an 8.5 rating. That's lower than the ratings for Honda, Buick, Mazda, Volkswagen, Ford, and even Saturn.
Toyota's recent history lines up fairly well with Collins's taxonomy of decline. His first stage is "hubris born of success," which certainly could apply to Toyota. For years, Toyota was a model of efficient manufacturing, mimicked even by firms in different industries. That may have convinced the firm's leaders they could grow rapidly and maintain quality at any size. Next in the evolution of decline comes "undisciplined pursuit of more." Toyota definitely had grand ambitions--to become the world's biggest automaker--but it's not clear yet if the firm was undisciplined or simply took risks that went against it. Collins's third stage is "denial of risk and peril," which many critics certainly saw in Toyota's rigid refutation of consumer complaints. Stage four is "grasping for salvation," which is what Toyota seems to be doing now.
[See 4 things that could derail a recovery.]
It's a safe bet, however, that Toyota will escape Collins's fifth stage: "capitulation to irrelevance or death." Despite its woes, Toyota remains a strong brand and a powerful company, and falling on its sword today may be the best path toward a corporate rebound. Surveys by BrandIndex, a market research firm, show that Toyota's "buzz" score--reflecting consumers' immediate perception of the brand--have dipped to historic lows. But positive impressions of Toyota still outweigh negative ones, which means customers are likely to return if the company solves its problems once and for all--and makes amends. "Consumers are pretty forgiving of blue-chip brands," says Ted Marzilli of BrandIndex. "Prospects are still quite good for Toyota, provided the issue is resolved quickly, there is clear communication to consumers, and there are no more issues in the near future." And humility replaces hubris.
Saturday, January 30, 2010
Texas Leads U.S. in High-Growth Cities
A new survey finds the Lone Star State is leading in terms of growth rate and household income. Atascocita, Tex., is No. 1 in the state
Tired of reading about how rotten the real estate market is? Here's some good news that shows that even during the worst of the recession plenty of American cities, towns, and suburbs continue to grow.
One such place is Atascocita, Tex. A mostly residential community 20 miles from Houston, it gained more than 1,800 households in 2009, an 8% year-over-year increase, according to new data from Little Rock-based data firm Gadberry Group. Over the decade, amenities that have helped attract residents to this wooded locale include Lake Houston, just east of the city; the school district; and proximity to the city of Houston. With new roads in the area under construction, "we're starting to see major industry start to take a look at the area," says Mike Byers, president of the Lake Houston Area Chamber of Commerce.
Migration levels nationwide stayed low last year as homeowners saddled with pricey mortgages stayed put--but there are some positive trends. Research by the Gadberry Group shows that some areas, resisting the effects of the recession, continue to attract both domestic and foreign migrants and, as an effect, bring in new businesses to provide services. While other cities across the U.S. have contracted, these have continued to grow.
Some states are better off than others, though. As thousands of people left places such as New Orleans and Flint, Mich. (the country's two fastest-shrinking cities), in the last decade, communities with the best mix of economic activity, proximity to job centers, and a good environment for families continued to grow. While not entirely spared by the economic downturn (some homes in these areas are now in foreclosure), people continued to move in during 2009.
Texas Grew the Most
Texas came out on top of Gadberry's survey, with four high-growth cities: Atascocita, Katy, Mansfield, and Wylie. The report only included areas larger than 10,000 occupied households that met requirements for growth rate, household income, length of residence, and other factors.
Larry Martin, principal of the Gadberry Group, says many of the places with the biggest housing growth at the beginning of the last decade, such as Nevada, Florida, and Arizona, also saw the biggest drop-off since the economy sank. Texas, however, enjoyed relatively strong housing and job markets over the last 10 years, thanks in large part to the presence of major employers in the robust energy business. As of December, the state unemployment rate was 8.3% (lower than the national rate of 10%), according to data from the Bureau of Labor Statistics. It also had the largest state population growth between July 2008 and July 2009, according to a December release by the Census Bureau. "New homes are still being built and people are still moving into these homes" in Texas, says Martin.
Part of the state's strength, says Mark Mather, a demographer at the Population Reference Bureau in Washington, D.C., is its diversified economy. Main industries include petroleum refining, chemical production, aerospace, and information technology.
Meanwhile, areas that depended on the housing boom are now dealing with high foreclosure rates. Places such as Summerlin South, Nev., which appear in Bloomberg BusinessWeek's slide show of fast-growing cities, gained population but, like the rest of the state, may be dealing with high mortgage default rates.
"If you live by migration, you also die by migration," says Kenneth Johnson, senior demographer at the University of New Hampshire's Carsey Institute. "It doesn't guarantee continued growth."
New Business Opportunities
Migration is typically highest among people in their 20s seeking jobs near large urban cores, but employment opportunities are not the only draw. "Amenities are also important in migrational decisions," says Johnson. Many families consider factors such as schools and recreational amenities like scenic areas and parks.
This is a consideration now in Spring Hill, Tenn., which gained 7,645 households since 2000 as many young families moved to the town for affordable housing and work at the General Motors plant, which is now idle. Dustin Dunbar, chairman of the Spring Hill Economic Development Commission, says this has created demand and opportunity for businesses that provide youth activities and entertainment. "We hope to recruit some businesses to cater to our largest demographics," he says.
While migration in 2010 may remain sluggish, "we'll see a continuation of urban sprawl once the economy bounces back," says Mather.
Fastest Growing Cities by State
Arizona: Buckeye
Number of households: 18,112
Pct. Chg: +10% since 2008 (+261% since 2000)
Average household income: $52,927 (–6% since 2000)
Why: Buckeye is one of the fastest-growing suburbs in Arizona and has seen a large influx of Asian residents, especially Vietnamese, according to Gadberry. While many new housing units are planned, the price of real estate in Buckeye has dropped nearly 12% since 2008, according to Trulia, and thousands of properties are in the foreclosure process.
California: Lincoln
Number of households: 21,997
Pct. Chg: +10% since 2008 (+250% since 2000)
Average household income: $90,608 (+16% since 2000)
Why: Lincoln, a suburban development 30 miles from Sacramento, is the fastest-growing suburb of California and the third fastest-growing town in the U.S. New office buildings, shopping centers, housing developments, and custom home properties have gone up in recent years as a part of the local development plan, according to ZipRealty.
Georgia: Braselton
Number of households: 13,929
Pct. Chg: +8% since 2008 (+118% since 2000)
Average household income: $113,664 (+67% since 2000)
Why: Gadberry Group noted Braselton, a suburb of Atlanta, as a remarkable high-growth area due to increases not only in population, but also average income and average household net worth ($532,628). Companies operating here such as Sears Logistics, Tractor Supply, Mitsubishi, and Progressive Lighting have helped to generate jobs.
Indiana: Avon
Number of households: 11,521
Pct. Chg: +8% since 2008 (+73% since 2000)
Average household income: $97,355 (+35% since 2000)
Why: Avon has experienced rapid growth since the 1990s due to its convenient location 10 miles from Indianapolis, where health care, social services, and education are the leading industries, according to Simply Hired.
Iowa: Urbandale
Number of households: 16,402
Pct. Chg: +8% since 2008 (+44% since 2000)
Average household income: $93,655 (+12% since 2000)
Why: Urbandale, within an hour's drive from Kansas City and Minneapolis, has a lower unemployment rate than the national average. The insurance and finance industries are major employers.
North Carolina: Wake Forest
Number of households: 17,803
Pct. Chg: +8% since 2008 (+118% since 2000)
Average household income: $82,771 (+18% since 2000)
Why: Not far from the Raleigh-Durham-Chapel Hill Triangle, Wake Forest has attracted residents with excellent quality of life, public schools, and health-care resources. Gadberry also notes the high percentage of children and ethnic diversity here.
South Carolina: Fort Mill
Number of households: 10,474
Pct. Chg: +8% since 2008 (+91% since 2000)
Average household income: $72,090(+23% since 2000)
Why: Companies such as Continental Tire and music distributor Muzak are located in Fort Mill, near Rock Hill, S.C., and Charlotte, N.C. While many financial companies moved into the area during the housing boom, they have mostly pulled out, reported The Wall Street Journal.
Tennessee: Spring Hill
Number of households: 11,814
Pct. Chg: +10% since 2008 (+183% since 2000)
Average household income: $92,347 (+44% since 2000)
Why: Spring Hill saw the fourth-largest increase in number of households on Gadberry's list, driven largely by the jobs created by GM's plant, which manufactured Saturn vehicles until 2008, when it started making the GM Traverse.
Texas: Atascocita
Number of households: 23,917
Pct. Chg: +8% since 2008 (+108% since 2000)
Average household income: $99,272 (+26% since 2000)
Why: Atascocita, 18 miles from Houston, boasts golf courses and country clubs. Residents can also boat and fish in nearby Lake Houston, a manmade lake. According to Gadberry, the number of Hispanic households increased by 278% since 2000, making it the largest-growing segment of the population.
Utah: South Jordan
Number of households: 13,622
Pct. Chg: +9% since 2008 (+82% since 2000)
Average household income: $108,300 (+37% since 2000)
Why: Development in this city, 10 miles from Salt Lake City, was fueled by the availability of land and large lots, planned communities, and a charming rural atmosphere. The new Daybreak Community development is expected to attract many more residents.
Tired of reading about how rotten the real estate market is? Here's some good news that shows that even during the worst of the recession plenty of American cities, towns, and suburbs continue to grow.
One such place is Atascocita, Tex. A mostly residential community 20 miles from Houston, it gained more than 1,800 households in 2009, an 8% year-over-year increase, according to new data from Little Rock-based data firm Gadberry Group. Over the decade, amenities that have helped attract residents to this wooded locale include Lake Houston, just east of the city; the school district; and proximity to the city of Houston. With new roads in the area under construction, "we're starting to see major industry start to take a look at the area," says Mike Byers, president of the Lake Houston Area Chamber of Commerce.
Migration levels nationwide stayed low last year as homeowners saddled with pricey mortgages stayed put--but there are some positive trends. Research by the Gadberry Group shows that some areas, resisting the effects of the recession, continue to attract both domestic and foreign migrants and, as an effect, bring in new businesses to provide services. While other cities across the U.S. have contracted, these have continued to grow.
Some states are better off than others, though. As thousands of people left places such as New Orleans and Flint, Mich. (the country's two fastest-shrinking cities), in the last decade, communities with the best mix of economic activity, proximity to job centers, and a good environment for families continued to grow. While not entirely spared by the economic downturn (some homes in these areas are now in foreclosure), people continued to move in during 2009.
Texas Grew the Most
Texas came out on top of Gadberry's survey, with four high-growth cities: Atascocita, Katy, Mansfield, and Wylie. The report only included areas larger than 10,000 occupied households that met requirements for growth rate, household income, length of residence, and other factors.
Larry Martin, principal of the Gadberry Group, says many of the places with the biggest housing growth at the beginning of the last decade, such as Nevada, Florida, and Arizona, also saw the biggest drop-off since the economy sank. Texas, however, enjoyed relatively strong housing and job markets over the last 10 years, thanks in large part to the presence of major employers in the robust energy business. As of December, the state unemployment rate was 8.3% (lower than the national rate of 10%), according to data from the Bureau of Labor Statistics. It also had the largest state population growth between July 2008 and July 2009, according to a December release by the Census Bureau. "New homes are still being built and people are still moving into these homes" in Texas, says Martin.
Part of the state's strength, says Mark Mather, a demographer at the Population Reference Bureau in Washington, D.C., is its diversified economy. Main industries include petroleum refining, chemical production, aerospace, and information technology.
Meanwhile, areas that depended on the housing boom are now dealing with high foreclosure rates. Places such as Summerlin South, Nev., which appear in Bloomberg BusinessWeek's slide show of fast-growing cities, gained population but, like the rest of the state, may be dealing with high mortgage default rates.
"If you live by migration, you also die by migration," says Kenneth Johnson, senior demographer at the University of New Hampshire's Carsey Institute. "It doesn't guarantee continued growth."
New Business Opportunities
Migration is typically highest among people in their 20s seeking jobs near large urban cores, but employment opportunities are not the only draw. "Amenities are also important in migrational decisions," says Johnson. Many families consider factors such as schools and recreational amenities like scenic areas and parks.
This is a consideration now in Spring Hill, Tenn., which gained 7,645 households since 2000 as many young families moved to the town for affordable housing and work at the General Motors plant, which is now idle. Dustin Dunbar, chairman of the Spring Hill Economic Development Commission, says this has created demand and opportunity for businesses that provide youth activities and entertainment. "We hope to recruit some businesses to cater to our largest demographics," he says.
While migration in 2010 may remain sluggish, "we'll see a continuation of urban sprawl once the economy bounces back," says Mather.
Fastest Growing Cities by State
Arizona: Buckeye
Number of households: 18,112
Pct. Chg: +10% since 2008 (+261% since 2000)
Average household income: $52,927 (–6% since 2000)
Why: Buckeye is one of the fastest-growing suburbs in Arizona and has seen a large influx of Asian residents, especially Vietnamese, according to Gadberry. While many new housing units are planned, the price of real estate in Buckeye has dropped nearly 12% since 2008, according to Trulia, and thousands of properties are in the foreclosure process.
California: Lincoln
Number of households: 21,997
Pct. Chg: +10% since 2008 (+250% since 2000)
Average household income: $90,608 (+16% since 2000)
Why: Lincoln, a suburban development 30 miles from Sacramento, is the fastest-growing suburb of California and the third fastest-growing town in the U.S. New office buildings, shopping centers, housing developments, and custom home properties have gone up in recent years as a part of the local development plan, according to ZipRealty.
Georgia: Braselton
Number of households: 13,929
Pct. Chg: +8% since 2008 (+118% since 2000)
Average household income: $113,664 (+67% since 2000)
Why: Gadberry Group noted Braselton, a suburb of Atlanta, as a remarkable high-growth area due to increases not only in population, but also average income and average household net worth ($532,628). Companies operating here such as Sears Logistics, Tractor Supply, Mitsubishi, and Progressive Lighting have helped to generate jobs.
Indiana: Avon
Number of households: 11,521
Pct. Chg: +8% since 2008 (+73% since 2000)
Average household income: $97,355 (+35% since 2000)
Why: Avon has experienced rapid growth since the 1990s due to its convenient location 10 miles from Indianapolis, where health care, social services, and education are the leading industries, according to Simply Hired.
Iowa: Urbandale
Number of households: 16,402
Pct. Chg: +8% since 2008 (+44% since 2000)
Average household income: $93,655 (+12% since 2000)
Why: Urbandale, within an hour's drive from Kansas City and Minneapolis, has a lower unemployment rate than the national average. The insurance and finance industries are major employers.
North Carolina: Wake Forest
Number of households: 17,803
Pct. Chg: +8% since 2008 (+118% since 2000)
Average household income: $82,771 (+18% since 2000)
Why: Not far from the Raleigh-Durham-Chapel Hill Triangle, Wake Forest has attracted residents with excellent quality of life, public schools, and health-care resources. Gadberry also notes the high percentage of children and ethnic diversity here.
South Carolina: Fort Mill
Number of households: 10,474
Pct. Chg: +8% since 2008 (+91% since 2000)
Average household income: $72,090(+23% since 2000)
Why: Companies such as Continental Tire and music distributor Muzak are located in Fort Mill, near Rock Hill, S.C., and Charlotte, N.C. While many financial companies moved into the area during the housing boom, they have mostly pulled out, reported The Wall Street Journal.
Tennessee: Spring Hill
Number of households: 11,814
Pct. Chg: +10% since 2008 (+183% since 2000)
Average household income: $92,347 (+44% since 2000)
Why: Spring Hill saw the fourth-largest increase in number of households on Gadberry's list, driven largely by the jobs created by GM's plant, which manufactured Saturn vehicles until 2008, when it started making the GM Traverse.
Texas: Atascocita
Number of households: 23,917
Pct. Chg: +8% since 2008 (+108% since 2000)
Average household income: $99,272 (+26% since 2000)
Why: Atascocita, 18 miles from Houston, boasts golf courses and country clubs. Residents can also boat and fish in nearby Lake Houston, a manmade lake. According to Gadberry, the number of Hispanic households increased by 278% since 2000, making it the largest-growing segment of the population.
Utah: South Jordan
Number of households: 13,622
Pct. Chg: +9% since 2008 (+82% since 2000)
Average household income: $108,300 (+37% since 2000)
Why: Development in this city, 10 miles from Salt Lake City, was fueled by the availability of land and large lots, planned communities, and a charming rural atmosphere. The new Daybreak Community development is expected to attract many more residents.
Honda sets own recall as Toyota details action
TOKYO/PARIS (Reuters) – Toyota said its global safety withdrawal would take up to 1.8 million vehicles off Europe's roads and rival Honda announced its own recall, placing the vaunted pedigree of Japan's carmakers under fresh scrutiny.
The move by Honda, tipped to benefit from Toyota's woes, came as suppliers, consumers and analysts weighed the financial impact on Toyota of its recall and its suspension of U.S. sales.
Investors also assessed the fall-out for an industry just emerging from global crisis as well as the damage to Japanese automakers' prized reputation for safety and reliability.
"It's not that their vehicles are worse than the others, (the recalls are) just showing maybe that their vehicles are like the others," said IHS Global Insight analyst Carlos Da Silva.
"The race to cost cuts and the competition between all brands is so fierce that even the mighty Japanese are doing things that are not as reliable as they were."
In a rare piece of positive news for Toyota, a source told Reuters that its U.S. sales could resume by the third week in February if a remedy to potentially sticking accelerator pedals was rolled out smoothly.
BENEFITS
Barclays Capital analysts still thought Honda would benefit from Toyota's massive recall, while Ford, GM, Hyundai and Nissan Motor Co also stood to gain market share in the short-term.
Toyota, the world's biggest carmaker, this week suspended North American sales and production of eight models and widened its recall to China and Europe, bringing the total to around 8 million units, more than the number of cars and trucks it sold worldwide in 2009.
Toyota said Friday it would recall eight models in Europe, totaling as many as 1.8 million units in Europe.
A Toyota spokeswoman said the company was still checking on whether any vehicles in Latin America, the Middle East and Africa had an accelerator problem.
Honda said it would recall 646,000 of its Fit/Jazz and City models, including 140,000 in the United States, because of a faulty window switch, after a child died when fire broke out in a car last year.
In an unusual move, House Energy and Commerce Committee Chairman Henry Waxman said the panel would investigate how effectively Toyota responded to concerns about sticking pedals and slipping floormats.
KNOCK-ON EFFECTS
In Tokyo, some worried about the effects on Japan's image and economy.
"If Toyota has hard times, there's a high probability that also Japan will," said Takeo Namekata, a 62-year-old office worker. "Particularly, trade will suffer."
Suppliers were expected to see some fallout.
"If Toyota gets the flu, its suppliers will also be sneezing," said Kevin Chen, president of Gasgoo.com, a major Chinese auto parts trading platform.
International component makers were most at risk, said Tatsuya Mizuno, president of Mizuno Credit Advisory, because it might encourage Toyota to switch to Japanese suppliers, he told Reuters Insider television.
Analysts have estimated the sales halt could cost Toyota at least 50 billion yen ($556 million) in operating profit a month, almost as much as it made in the September quarter.
SAFETY REPUTATION
IHS Global Insight's Da Silva said Japanese carmakers would be able to salvage their reputations as long as they moved quickly to show the recalls were isolated incidents.
Recalls can show companies care about the cars they build, and don't simply wash their hands of them once they are driven away from the showroom, he added.
Toyota shares have dropped 17.6 percent since January 21, when it said it would broaden its recalls by a further 2.3 million vehicles. Shares ended down 2 percent in Tokyo Friday.
Industry analysts and executives estimate it will cost some $250 million in warranty costs alone for Toyota to address the smaller of the two recalls underway in the United States.
The automaker also faces the fallout from the larger recall that began last year and was broadened this week for vehicles at risk of having floormats that can jam under accelerator pedals.
(Additional reporting by Bernie Woodall, Soyoung Kim, Kevin Krolicki in Detroit; Chang-Rang Kim and Taiga Uranaka in Tokyo; Janaki Krishan in Mumbai; Fang Yan in Shanghai; Tiisetso Motsoeneng in Johannesburg; Rhys Jones in London and Helen Massy-Beresford in Paris; Editing by David Cowell)
The move by Honda, tipped to benefit from Toyota's woes, came as suppliers, consumers and analysts weighed the financial impact on Toyota of its recall and its suspension of U.S. sales.
Investors also assessed the fall-out for an industry just emerging from global crisis as well as the damage to Japanese automakers' prized reputation for safety and reliability.
"It's not that their vehicles are worse than the others, (the recalls are) just showing maybe that their vehicles are like the others," said IHS Global Insight analyst Carlos Da Silva.
"The race to cost cuts and the competition between all brands is so fierce that even the mighty Japanese are doing things that are not as reliable as they were."
In a rare piece of positive news for Toyota, a source told Reuters that its U.S. sales could resume by the third week in February if a remedy to potentially sticking accelerator pedals was rolled out smoothly.
BENEFITS
Barclays Capital analysts still thought Honda would benefit from Toyota's massive recall, while Ford, GM, Hyundai and Nissan Motor Co also stood to gain market share in the short-term.
Toyota, the world's biggest carmaker, this week suspended North American sales and production of eight models and widened its recall to China and Europe, bringing the total to around 8 million units, more than the number of cars and trucks it sold worldwide in 2009.
Toyota said Friday it would recall eight models in Europe, totaling as many as 1.8 million units in Europe.
A Toyota spokeswoman said the company was still checking on whether any vehicles in Latin America, the Middle East and Africa had an accelerator problem.
Honda said it would recall 646,000 of its Fit/Jazz and City models, including 140,000 in the United States, because of a faulty window switch, after a child died when fire broke out in a car last year.
In an unusual move, House Energy and Commerce Committee Chairman Henry Waxman said the panel would investigate how effectively Toyota responded to concerns about sticking pedals and slipping floormats.
KNOCK-ON EFFECTS
In Tokyo, some worried about the effects on Japan's image and economy.
"If Toyota has hard times, there's a high probability that also Japan will," said Takeo Namekata, a 62-year-old office worker. "Particularly, trade will suffer."
Suppliers were expected to see some fallout.
"If Toyota gets the flu, its suppliers will also be sneezing," said Kevin Chen, president of Gasgoo.com, a major Chinese auto parts trading platform.
International component makers were most at risk, said Tatsuya Mizuno, president of Mizuno Credit Advisory, because it might encourage Toyota to switch to Japanese suppliers, he told Reuters Insider television.
Analysts have estimated the sales halt could cost Toyota at least 50 billion yen ($556 million) in operating profit a month, almost as much as it made in the September quarter.
SAFETY REPUTATION
IHS Global Insight's Da Silva said Japanese carmakers would be able to salvage their reputations as long as they moved quickly to show the recalls were isolated incidents.
Recalls can show companies care about the cars they build, and don't simply wash their hands of them once they are driven away from the showroom, he added.
Toyota shares have dropped 17.6 percent since January 21, when it said it would broaden its recalls by a further 2.3 million vehicles. Shares ended down 2 percent in Tokyo Friday.
Industry analysts and executives estimate it will cost some $250 million in warranty costs alone for Toyota to address the smaller of the two recalls underway in the United States.
The automaker also faces the fallout from the larger recall that began last year and was broadened this week for vehicles at risk of having floormats that can jam under accelerator pedals.
(Additional reporting by Bernie Woodall, Soyoung Kim, Kevin Krolicki in Detroit; Chang-Rang Kim and Taiga Uranaka in Tokyo; Janaki Krishan in Mumbai; Fang Yan in Shanghai; Tiisetso Motsoeneng in Johannesburg; Rhys Jones in London and Helen Massy-Beresford in Paris; Editing by David Cowell)
Tuesday, January 5, 2010
9 Things You Should Ask Your Gynecologist
Do you ever feel shy about talking to your doctor about certain things? Whether it’s an embarrassing concern, question or confession, it’s important to say what’s on your mind and what’s been going on with your body when you’re in the exam room. Here are nine questions you should never feel nervous about asking your gynecologist:
1. “Why does sex hurt?”
9 Things You Should Ask Your Gynecologist
While not every woman will experience pain during intercourse, it affects as many as 15 percent of women at various points in their lives, says Debby Herbenick, PhD, author of Because It Feels Good: A Woman's Guide to Sexual Pleasure and Satisfaction. “All too often, women think that pain is ‘normal,’ or something they should grin and bear,” she says. “But they don't have to. Genital pain can often be treated.” If you’re experiencing pain during intercourse, speak up! Your doctor can help you find a treatment plan that’s right for you, possibly refer you to a specialist and connect you to helpful resources like the National Vulvodynia Association, a group that specializes in vaginal pain.
2. “Why does it itch…down there?”
Vaginal itching can be embarrassing and troubling. “Women often think they have a yeast infection when they really don't and then they end up spending money on yeast medications that may make their problem worse,” explains Dr. Herbenick. “In fact, itching can also be a sign of a sexually transmissible infection, a vulvar skin disorder, a bacterial infection, a sensitivity to laundry soap or, in rare cases, an early sign of vulvar cancer.” Bottom line: If you’re experiencing vaginal itching, don’t hide it from your doctor. “Itching should always be brought to a healthcare provider's attention.”
3. “I’m concerned about my vaginal odor—is it a sign of an infection or STD?”
Concerns about vaginal odor are very common, says Dr. Herbenick, so don’t feel like you’re the first woman in the history of the world to worry about it. “Often, the scent is totally normal,” she says, “and your gynecologist can reassure you of this so you can feel comfortable and confident with your body.” But if you’re concerned that something is wrong, especially if a perceived odor coincides with other symptoms, like excessive discharge or burning and itching, your gynecologist needs to know. “It may reflect a bacterial imbalance or an infection that can be treated.”
4. “Why do I sometimes leak urine?”
Urinary incontinence affects many women—of all ages—says Keehn Hosier, MD, an ob-gyn who practices at Brookwood Medical Center in Birmingham, Alabama, but it’s most common for pre- and post-menopausal women, especially those who have had children. The condition can be embarrassing and socially isolating, and, he says, many are afraid to talk about it. “Women shouldn’t have to suffer in silence about something like this,” says Dr. Hosier. “It’s something that’s often treatable. There are many ways to treat the symptoms, ranging from weight-loss, bladder training, medication, implant devices or even surgery.”
5. “I’m concerned that my boyfriend/husband/partner is cheating. Should I be tested for a sexually transmitted disease?” Or “I had an affair. Should I get an STD test?”
Whether you’re concerned about the consequences of his unfaithfulness or yours, it can feel embarrassing to bring it up with your gynecologist. But she’s the first person you should talk to, say experts. Ask your doctor about getting a comprehensive sexually transmitted disease test, says Dr. Hosier. Not only will it ease your mind, but it could save your life. “If you have even the slightest concern, it’s always better to have it checked out,” he says. “We’re diagnosing many more cases of STDs in older women because of the increased use of erectile dysfunction medications.”
6. “Why am I having hot flashes—could it be menopause, or something else?”
According to Robert Gallo, MD, a board-certified ob-gyn and past president of the New Jersey Obstetrical and Gynecological Society, many women keep quiet about their hot flashes because they assume it’s a normal and natural symptom of aging and menopause. But here’s some new thinking: Dr. Gallo encourages all women to tell their doctors about them. True, they may be a normal symptom of menopause, but they may also be a symptom of another health condition. “I can't tell you the number of times that a patient's hot flashes were a sign of a thyroid imbalance. The symptoms just may be related to premenopausal, menopausal or postmenopausal issues, but don't assume that they are.” Thyroid conditions are often diagnosed with a simple blood test and easily treated with medication.
7. “The skin near my vagina appears to have changed color and texture—is this a problem?”
Being aware of the changes in your genital area is important, as is sharing them with your doctor, particularly if you notice changes in skin color or texture. “It could be an early warning sign of a benign vulvar skin disorder called lichen sclerosus,” explains Dr. Herbenick. “If left untreated, it can cause thinning of the vulvar skin, which can lead to painful sex or tearing of the genital skin during sex. It can also cause severe itching or pain if left untreated. Fortunately, successful treatments are available, so early detection is key.”
8. “Why do I have such painful periods?
”If you have severe pain and discomfort with your period each month, it could be a sign of many things, including a serious yet treatable health condition called endometriosis, which can cause excruciating pain and even infertility. According to data, endometriosis may affect millions of women in the United States, yet many cases go undiagnosed, says Tamer Seckin, MD, a laparoscopic surgeon and endometriosis specialist, and cofounder of the Endometriosis Foundation of America. The reason? Women fail to share their symptoms with their doctors. Women shouldn’t assume that all menstrual pain is “normal,” says Dr. Seckin, who urges women to discuss any and all symptoms to their doctor. “Endometriosis is treatable, even curable, if addressed early enough.”
9. “With breast cancer in mind, how should I check my breasts?”
If you’re confused about what you should be doing to detect and prevent breast cancer, join the club! There have been so many confusing messages for women in the last year, even the last month, says Lissa Rankin, MD, ob-gyn, author of the forthcoming book What's Up Down There? Questions You'd Only Ask Your Gynecologist If She Was Your Best Friend, and founder of OwningPink.com. It’s why you should be asking your doctor this question and demanding a clear answer.
“The U.S. Preventive Services Task Force just changed the recommendations,” Dr. Rankin explains. “They are now suggesting that doctors refrain from teaching self-breast exams and that women skip self-breast exams.” Dr. Rankin says she has some concerns about this. “While the data to support breast self-exam as an effective screening tool demonstrates little benefit, we all know someone who has found her own breast cancer by examining her breast in the shower. If you’re that one woman, aren’t you glad your learned how to check your breasts? The way I see it, there’s no harm. Some argue that breast self-exams increase anxiety and lead to unnecessary doctor’s visits when patients find a ‘lump’ that doesn’t really exist. But I’d much rather have a woman come in to double-check a nonexistent lump than miss a breast cancer.”
1. “Why does sex hurt?”
9 Things You Should Ask Your Gynecologist
While not every woman will experience pain during intercourse, it affects as many as 15 percent of women at various points in their lives, says Debby Herbenick, PhD, author of Because It Feels Good: A Woman's Guide to Sexual Pleasure and Satisfaction. “All too often, women think that pain is ‘normal,’ or something they should grin and bear,” she says. “But they don't have to. Genital pain can often be treated.” If you’re experiencing pain during intercourse, speak up! Your doctor can help you find a treatment plan that’s right for you, possibly refer you to a specialist and connect you to helpful resources like the National Vulvodynia Association, a group that specializes in vaginal pain.
2. “Why does it itch…down there?”
Vaginal itching can be embarrassing and troubling. “Women often think they have a yeast infection when they really don't and then they end up spending money on yeast medications that may make their problem worse,” explains Dr. Herbenick. “In fact, itching can also be a sign of a sexually transmissible infection, a vulvar skin disorder, a bacterial infection, a sensitivity to laundry soap or, in rare cases, an early sign of vulvar cancer.” Bottom line: If you’re experiencing vaginal itching, don’t hide it from your doctor. “Itching should always be brought to a healthcare provider's attention.”
3. “I’m concerned about my vaginal odor—is it a sign of an infection or STD?”
Concerns about vaginal odor are very common, says Dr. Herbenick, so don’t feel like you’re the first woman in the history of the world to worry about it. “Often, the scent is totally normal,” she says, “and your gynecologist can reassure you of this so you can feel comfortable and confident with your body.” But if you’re concerned that something is wrong, especially if a perceived odor coincides with other symptoms, like excessive discharge or burning and itching, your gynecologist needs to know. “It may reflect a bacterial imbalance or an infection that can be treated.”
4. “Why do I sometimes leak urine?”
Urinary incontinence affects many women—of all ages—says Keehn Hosier, MD, an ob-gyn who practices at Brookwood Medical Center in Birmingham, Alabama, but it’s most common for pre- and post-menopausal women, especially those who have had children. The condition can be embarrassing and socially isolating, and, he says, many are afraid to talk about it. “Women shouldn’t have to suffer in silence about something like this,” says Dr. Hosier. “It’s something that’s often treatable. There are many ways to treat the symptoms, ranging from weight-loss, bladder training, medication, implant devices or even surgery.”
5. “I’m concerned that my boyfriend/husband/partner is cheating. Should I be tested for a sexually transmitted disease?” Or “I had an affair. Should I get an STD test?”
Whether you’re concerned about the consequences of his unfaithfulness or yours, it can feel embarrassing to bring it up with your gynecologist. But she’s the first person you should talk to, say experts. Ask your doctor about getting a comprehensive sexually transmitted disease test, says Dr. Hosier. Not only will it ease your mind, but it could save your life. “If you have even the slightest concern, it’s always better to have it checked out,” he says. “We’re diagnosing many more cases of STDs in older women because of the increased use of erectile dysfunction medications.”
6. “Why am I having hot flashes—could it be menopause, or something else?”
According to Robert Gallo, MD, a board-certified ob-gyn and past president of the New Jersey Obstetrical and Gynecological Society, many women keep quiet about their hot flashes because they assume it’s a normal and natural symptom of aging and menopause. But here’s some new thinking: Dr. Gallo encourages all women to tell their doctors about them. True, they may be a normal symptom of menopause, but they may also be a symptom of another health condition. “I can't tell you the number of times that a patient's hot flashes were a sign of a thyroid imbalance. The symptoms just may be related to premenopausal, menopausal or postmenopausal issues, but don't assume that they are.” Thyroid conditions are often diagnosed with a simple blood test and easily treated with medication.
7. “The skin near my vagina appears to have changed color and texture—is this a problem?”
Being aware of the changes in your genital area is important, as is sharing them with your doctor, particularly if you notice changes in skin color or texture. “It could be an early warning sign of a benign vulvar skin disorder called lichen sclerosus,” explains Dr. Herbenick. “If left untreated, it can cause thinning of the vulvar skin, which can lead to painful sex or tearing of the genital skin during sex. It can also cause severe itching or pain if left untreated. Fortunately, successful treatments are available, so early detection is key.”
8. “Why do I have such painful periods?
”If you have severe pain and discomfort with your period each month, it could be a sign of many things, including a serious yet treatable health condition called endometriosis, which can cause excruciating pain and even infertility. According to data, endometriosis may affect millions of women in the United States, yet many cases go undiagnosed, says Tamer Seckin, MD, a laparoscopic surgeon and endometriosis specialist, and cofounder of the Endometriosis Foundation of America. The reason? Women fail to share their symptoms with their doctors. Women shouldn’t assume that all menstrual pain is “normal,” says Dr. Seckin, who urges women to discuss any and all symptoms to their doctor. “Endometriosis is treatable, even curable, if addressed early enough.”
9. “With breast cancer in mind, how should I check my breasts?”
If you’re confused about what you should be doing to detect and prevent breast cancer, join the club! There have been so many confusing messages for women in the last year, even the last month, says Lissa Rankin, MD, ob-gyn, author of the forthcoming book What's Up Down There? Questions You'd Only Ask Your Gynecologist If She Was Your Best Friend, and founder of OwningPink.com. It’s why you should be asking your doctor this question and demanding a clear answer.
“The U.S. Preventive Services Task Force just changed the recommendations,” Dr. Rankin explains. “They are now suggesting that doctors refrain from teaching self-breast exams and that women skip self-breast exams.” Dr. Rankin says she has some concerns about this. “While the data to support breast self-exam as an effective screening tool demonstrates little benefit, we all know someone who has found her own breast cancer by examining her breast in the shower. If you’re that one woman, aren’t you glad your learned how to check your breasts? The way I see it, there’s no harm. Some argue that breast self-exams increase anxiety and lead to unnecessary doctor’s visits when patients find a ‘lump’ that doesn’t really exist. But I’d much rather have a woman come in to double-check a nonexistent lump than miss a breast cancer.”
Thursday, December 10, 2009
A Guide to Go Power Grocery Shopping
1. At the Meat Counter
Good: Lean beef
Why: It's high in protein but lower in calories and saturated fat than other cuts of beef--and still brimming with B vitamins, which help your body turn food into energy. Cuts that have the words loin or round in their names (like tenderloin or top round steak) are lower-fat choices. When buying ground beef, look for one that's at least 92% lean. (Beef labeled 80% lean doesn't mean it has only 20% calories from fat. It's 20% fat by weight and has closer to 70% calories from fat--about 20 g per 3 1/2-ounce serving!)
Better: Organic beef
Why: The cattle were raised without hormones or antibiotics, substances that some people worry may contribute to consumers' reproductive disorders and antibiotic resistance. Organic beef also makes a more environmentally friendly burger, since it comes from cows fed only organic feed (which was grown without chemical pesticides). Just be sure the label says the word organic, because natural beef isn't the same.
Best: Grass-fed beef
Why: It's pricier than regular beef, but the health perks make it worth the splurge. Compared with grain-fed beef, grass-fed packs twice the concentration of vitamin E, an antioxidant that protects cells from damage that can lead to chronic diseases. It's also high in the compound CLA, fatty acids that researchers link with weight loss. Plus, it's rich in heart-healthy omega-3 fatty acids, rivaling some fish. According to researchers from the University of California Cooperative Extension Service, feeding grass to cattle boosts the omega-3 content of beef by 60%. Because this type of beef tends to be lower in overall fat, it can be tough--so marinate it, and use a meat thermometer to avoid overcooking.
2. In the Egg Section
Good: Packaged egg whites
Why: They're a low-calorie protein powerhouse, with no cholesterol or fat. In recipes, substitute the equivalent of two egg whites for each whole egg. Added bonus: Any egg-based dish makes an affordable alternative to pricier meat-based ones.
Better: Whole eggs
Why: The yolk is home to tons of nutrients, including choline, which is linked to lower rates of breast cancer. (One yolk has more than 25% of your daily needs.) It's also rich in antioxidants that may help prevent macular degeneration and cataracts. Worried about the fat and cholesterol? Though people with heart disease should limit egg yolks to two a week, a recent study didn't find a connection between eating up to six eggs per week and increased rates of heart attack or stroke in healthy people.
Best: Omega-3-fortified eggs
Why: They have all the nutrients of regular eggs, plus up to 300 mg or so of the heart-protective fatty acids in each one. Many experts recommend 1,000 mg of DHA and EPA a day; however, because most people don't eat enough fish to meet this goal, these eggs offer another way to add omega-3s to your diet.
3. In the Dairy Case
Good: Fat-free milk
Why: It contains only traces of fat, while even 2% milk packs 3 g of the artery-plugging saturated kind in every 8-ounce glass. Each cup of fat-free also supplies 76 mg more calcium than the same amount of whole milk does.
Better: Skim Plus
Why: It's as good for you as fat-free milk, with a richer taste. Skim Plus (also called skim deluxe or supreme) is fortified with extra milk protein, making it thicker, creamier tasting, and easier to transition to from whole or 2%.
Best: Organic fat-free milk
Why: A recent study from the United Kingdom found that organically raised cows produce milk with higher levels of antioxidants and fatty acids such as CLAs and omega-3s--thanks to all the grass and clover they consume. You'll pay more for organic milk, but because it's often ultrapasteurized (heated at higher temps and labeled UHT), it may last longer in your fridge.
4. On the Butter Shelf
Good: Trans-free margarine
Why: It's a wiser pick than butter because it doesn't contain any cholesterol and has much less saturated fat. It also doesn't pack the dangerous trans fats that many margarines do--the kind of fats that boost bad cholesterol and lower the good kind. Some are even fortified with bone-building calcium or heart-healthy omega-3 fatty acids.
Better: Light trans-free margarine
Why: Your toast and baked potatoes will still get a buttery kick. But even if you use a whole tablespoon, you'll take in as few as 45 calories and 5 g of fat.
Best: Margarines with added plant stanols/sterols
Why: You'll pay more for this margarine, but it's a powerful cholesterol fighter, thanks to plant stanols/sterols, which naturally reduce the amount of LDL cholesterol the body can absorb. In a study in the American Journal of Cardiology, eating 25 g of margarine a day enriched with plant stanols/sterols lowered LDL cholesterol by 8% in 4 weeks.
5. In the Yogurt Section
Good: Low-fat flavored yogurt
Why: Cup for cup, yogurt has about 70 mg more calcium than milk, plus enough protein to make it a satisfying snack. It's rich in beneficial bacteria that can ward off tummy troubles and yeast infections. Look for Lactobacillus (L. acidophilus) and/or Bifidobacterium (B. bifidum) in the ingredients.
Better: Low-fat plain yogurt
Why: Despite the health benefits, some flavored varieties have a ton of added sweetener, such as sugar or high fructose corn syrup. For a healthier treat, pick plain and swirl in a spoonful of all-fruit spread. (You can also drizzle in honey for a bonus shot of antioxidants.)
Best: Greek yogurt
Why: "I love recommending Greek yogurt to clients," says Lara E. Metz, RD, a New York City nutritionist. "It has just as much calcium as regular yogurt and twice the protein--but it's richer and creamier." Be sure to choose the 0% fat variety to minimize calories.
6. At the Fish Counter
Good: Tilapia
Why: It's an affordable pick and a dieter's dream. Each 3-ounce serving contains only 110 calories and 2.5 g of fat--but a whopping 22 g of fill-you-up protein. According to the FDA, tilapia has the lowest mercury level of all fish. Although other fish have more heart-smart omega-3 fatty acids, tilapia is still a healthy choice at dinnertime.
Better: Halibut
Why: It boasts more heart-healthy omega-3s per serving than tilapia. In fact, a 5-ounce fillet packs your entire day's needs of EPA and DHA, fatty acids that can increase "good" HDL cholesterol and may also help prevent cognitive decline related to aging.
Best: Salmon
Why: Salmon's one of the best sources of omega-3s you can find. Research has found that a healthy diet including fatty fish like salmon is linked to lower risk of heart disease, stroke, and diabetes. Wild has a slight edge over farm-raised because it may be lower in contaminants such as PCBs and dioxins--but both versions are equally nutritious. "Just remove the skin after cooking, because that's where most of the contaminants are found," says Grotto.
7. In the Produce Section
Good: Romaine
Why: Rich in vitamins A and K, crunchy romaine makes a respectable base for any salad. Romaine also boasts more than 8 times the vitamin C of iceberg lettuce.
Better: Watercress
Why: This peppery leaf not only adds a kick to salads but also adds a small dose of calcium. A study from the University of Ulster in the United Kingdom found that eating watercress daily is linked with reduced cellular DNA damage that may lead to cancer. If you find the flavor too strong, toss it with milder lettuces (say, bib or red leaf) or layer it with tomato on your turkey sandwich.
Best: Spinach
Why: Spinach is rich in iron, which helps deliver oxygen to your cells to keep you alert and energized. And research from the Massachusetts Eye and Ear Infirmary links eating antioxidant-rich spinach with a lower risk of age-related macular degeneration.
8. In the Snack Aisle
Good: Popcorn
Why: It's a stealth whole grain, packing 3 g of fiber and an entire serving of whole grains in each 3-cup, 90-calorie, air-popped bowl. That's why people who snack on it get two more servings of whole grains and 22% more fiber every day than people who don't, according to a recent study in the Journal of the American Dietetic Association.
Better: Peanuts
Why: With as much protein as 1/2 cup of black beans, a handful of peanuts also contains 7 g of heart-healthy monounsaturated fat. Women who ate peanuts and peanut butter at least 5 times a week had up to 27% less risk of developing type 2 diabetes, possibly because the healthy fats increase insulin sensitivity, according to a study from the Harvard School of Public Health. Because they're easy to overeat, measure out your 1-ounce, 160-calorie portion (a small handful--about 40 nuts).
Best: Almonds
Why: "They're one of the most nutritious nuts around," says David Katz, MD, director of the Yale Prevention Research Center. Almonds are also the go-to snack when you're trying to drop weight. In one study, women who ate almonds had higher levels of cholecystokinin, a hunger-suppressing hormone, circulating in their systems. Another study found that a heart-healthy diet including almonds lowered LDL cholesterol as much as a statin drug did.
9. In the Dried Fruit Bins
Good: Raisins
Why: They're an affordable and portable pick-me-up, ideal for stashing in your bag or desk drawer. Each little box contains a serving of fruit and nearly as much potassium as a small banana--but at 130 calories, they're a lighter pick than most energy bars. Researchers at the University of Illinois at Chicago College of Dentistry even debunked the myth that raisins stick to the teeth and cause cavities: They actually contain a natural compound that fights bacterial growth in the mouth.
Better: Dried apricots
Why: One-half cup contains all the virus-fighting vitamin A you need for the day, along with a big shot of potassium, plus the same amount of fiber as two slices of whole wheat bread. Sulfur dioxide is often added to lock in color, but if it doesn't agree with your gut, look for an unsulfured kind (it's browner but just as healthy) or freeze-dried apricots, which are additive free.
Best: Dried figs
Why: With about one-third of your day's supply of fiber per 1/2-cup serving, they pack more than any other dried fruit. Fiber helps you stay full, so figs are a powerful hunger suppressant. Each 1/2 cup has as much calcium as 1/2 ounce of cheese and contains phenols that may guard against heart disease and cancer, says Grotto.
10. In the Condiments Aisle
Good: Low-fat creamy salad dressing
Why: If you prefer creamy dressings (such as ranch or blue cheese), these are a perfect way to add flavor to your favorite greens without drowning them in extra calories or fat.
Better: Full-fat oil-based dressing
Why: The fats in oils like canola and olive are healthier for you. They're a good source of vitamin E and help your body soak up all the vitamins in veggies. In one study, people absorbed more carotenoids from a salad with full-fat dressing than with reduced-fat dressing. (Those eating fat-free dressing absorbed just traces.) The calories add up fast, so measure out a 2-tablespoon portion.
Best: Olive oil and flavored vinegar
Why: With a do-it-yourself dressing, you don't have to worry about the quality of the ingredients. Mix 2 teaspoons of olive oil (or canola or flaxseed--they all contain higher amounts of heart-healthy monounsaturated fat) with flavored vinegar such as raspberry, then toss in any herbs you like.
Good: Lean beef
Why: It's high in protein but lower in calories and saturated fat than other cuts of beef--and still brimming with B vitamins, which help your body turn food into energy. Cuts that have the words loin or round in their names (like tenderloin or top round steak) are lower-fat choices. When buying ground beef, look for one that's at least 92% lean. (Beef labeled 80% lean doesn't mean it has only 20% calories from fat. It's 20% fat by weight and has closer to 70% calories from fat--about 20 g per 3 1/2-ounce serving!)
Better: Organic beef
Why: The cattle were raised without hormones or antibiotics, substances that some people worry may contribute to consumers' reproductive disorders and antibiotic resistance. Organic beef also makes a more environmentally friendly burger, since it comes from cows fed only organic feed (which was grown without chemical pesticides). Just be sure the label says the word organic, because natural beef isn't the same.
Best: Grass-fed beef
Why: It's pricier than regular beef, but the health perks make it worth the splurge. Compared with grain-fed beef, grass-fed packs twice the concentration of vitamin E, an antioxidant that protects cells from damage that can lead to chronic diseases. It's also high in the compound CLA, fatty acids that researchers link with weight loss. Plus, it's rich in heart-healthy omega-3 fatty acids, rivaling some fish. According to researchers from the University of California Cooperative Extension Service, feeding grass to cattle boosts the omega-3 content of beef by 60%. Because this type of beef tends to be lower in overall fat, it can be tough--so marinate it, and use a meat thermometer to avoid overcooking.
2. In the Egg Section
Good: Packaged egg whites
Why: They're a low-calorie protein powerhouse, with no cholesterol or fat. In recipes, substitute the equivalent of two egg whites for each whole egg. Added bonus: Any egg-based dish makes an affordable alternative to pricier meat-based ones.
Better: Whole eggs
Why: The yolk is home to tons of nutrients, including choline, which is linked to lower rates of breast cancer. (One yolk has more than 25% of your daily needs.) It's also rich in antioxidants that may help prevent macular degeneration and cataracts. Worried about the fat and cholesterol? Though people with heart disease should limit egg yolks to two a week, a recent study didn't find a connection between eating up to six eggs per week and increased rates of heart attack or stroke in healthy people.
Best: Omega-3-fortified eggs
Why: They have all the nutrients of regular eggs, plus up to 300 mg or so of the heart-protective fatty acids in each one. Many experts recommend 1,000 mg of DHA and EPA a day; however, because most people don't eat enough fish to meet this goal, these eggs offer another way to add omega-3s to your diet.
3. In the Dairy Case
Good: Fat-free milk
Why: It contains only traces of fat, while even 2% milk packs 3 g of the artery-plugging saturated kind in every 8-ounce glass. Each cup of fat-free also supplies 76 mg more calcium than the same amount of whole milk does.
Better: Skim Plus
Why: It's as good for you as fat-free milk, with a richer taste. Skim Plus (also called skim deluxe or supreme) is fortified with extra milk protein, making it thicker, creamier tasting, and easier to transition to from whole or 2%.
Best: Organic fat-free milk
Why: A recent study from the United Kingdom found that organically raised cows produce milk with higher levels of antioxidants and fatty acids such as CLAs and omega-3s--thanks to all the grass and clover they consume. You'll pay more for organic milk, but because it's often ultrapasteurized (heated at higher temps and labeled UHT), it may last longer in your fridge.
4. On the Butter Shelf
Good: Trans-free margarine
Why: It's a wiser pick than butter because it doesn't contain any cholesterol and has much less saturated fat. It also doesn't pack the dangerous trans fats that many margarines do--the kind of fats that boost bad cholesterol and lower the good kind. Some are even fortified with bone-building calcium or heart-healthy omega-3 fatty acids.
Better: Light trans-free margarine
Why: Your toast and baked potatoes will still get a buttery kick. But even if you use a whole tablespoon, you'll take in as few as 45 calories and 5 g of fat.
Best: Margarines with added plant stanols/sterols
Why: You'll pay more for this margarine, but it's a powerful cholesterol fighter, thanks to plant stanols/sterols, which naturally reduce the amount of LDL cholesterol the body can absorb. In a study in the American Journal of Cardiology, eating 25 g of margarine a day enriched with plant stanols/sterols lowered LDL cholesterol by 8% in 4 weeks.
5. In the Yogurt Section
Good: Low-fat flavored yogurt
Why: Cup for cup, yogurt has about 70 mg more calcium than milk, plus enough protein to make it a satisfying snack. It's rich in beneficial bacteria that can ward off tummy troubles and yeast infections. Look for Lactobacillus (L. acidophilus) and/or Bifidobacterium (B. bifidum) in the ingredients.
Better: Low-fat plain yogurt
Why: Despite the health benefits, some flavored varieties have a ton of added sweetener, such as sugar or high fructose corn syrup. For a healthier treat, pick plain and swirl in a spoonful of all-fruit spread. (You can also drizzle in honey for a bonus shot of antioxidants.)
Best: Greek yogurt
Why: "I love recommending Greek yogurt to clients," says Lara E. Metz, RD, a New York City nutritionist. "It has just as much calcium as regular yogurt and twice the protein--but it's richer and creamier." Be sure to choose the 0% fat variety to minimize calories.
6. At the Fish Counter
Good: Tilapia
Why: It's an affordable pick and a dieter's dream. Each 3-ounce serving contains only 110 calories and 2.5 g of fat--but a whopping 22 g of fill-you-up protein. According to the FDA, tilapia has the lowest mercury level of all fish. Although other fish have more heart-smart omega-3 fatty acids, tilapia is still a healthy choice at dinnertime.
Better: Halibut
Why: It boasts more heart-healthy omega-3s per serving than tilapia. In fact, a 5-ounce fillet packs your entire day's needs of EPA and DHA, fatty acids that can increase "good" HDL cholesterol and may also help prevent cognitive decline related to aging.
Best: Salmon
Why: Salmon's one of the best sources of omega-3s you can find. Research has found that a healthy diet including fatty fish like salmon is linked to lower risk of heart disease, stroke, and diabetes. Wild has a slight edge over farm-raised because it may be lower in contaminants such as PCBs and dioxins--but both versions are equally nutritious. "Just remove the skin after cooking, because that's where most of the contaminants are found," says Grotto.
7. In the Produce Section
Good: Romaine
Why: Rich in vitamins A and K, crunchy romaine makes a respectable base for any salad. Romaine also boasts more than 8 times the vitamin C of iceberg lettuce.
Better: Watercress
Why: This peppery leaf not only adds a kick to salads but also adds a small dose of calcium. A study from the University of Ulster in the United Kingdom found that eating watercress daily is linked with reduced cellular DNA damage that may lead to cancer. If you find the flavor too strong, toss it with milder lettuces (say, bib or red leaf) or layer it with tomato on your turkey sandwich.
Best: Spinach
Why: Spinach is rich in iron, which helps deliver oxygen to your cells to keep you alert and energized. And research from the Massachusetts Eye and Ear Infirmary links eating antioxidant-rich spinach with a lower risk of age-related macular degeneration.
8. In the Snack Aisle
Good: Popcorn
Why: It's a stealth whole grain, packing 3 g of fiber and an entire serving of whole grains in each 3-cup, 90-calorie, air-popped bowl. That's why people who snack on it get two more servings of whole grains and 22% more fiber every day than people who don't, according to a recent study in the Journal of the American Dietetic Association.
Better: Peanuts
Why: With as much protein as 1/2 cup of black beans, a handful of peanuts also contains 7 g of heart-healthy monounsaturated fat. Women who ate peanuts and peanut butter at least 5 times a week had up to 27% less risk of developing type 2 diabetes, possibly because the healthy fats increase insulin sensitivity, according to a study from the Harvard School of Public Health. Because they're easy to overeat, measure out your 1-ounce, 160-calorie portion (a small handful--about 40 nuts).
Best: Almonds
Why: "They're one of the most nutritious nuts around," says David Katz, MD, director of the Yale Prevention Research Center. Almonds are also the go-to snack when you're trying to drop weight. In one study, women who ate almonds had higher levels of cholecystokinin, a hunger-suppressing hormone, circulating in their systems. Another study found that a heart-healthy diet including almonds lowered LDL cholesterol as much as a statin drug did.
9. In the Dried Fruit Bins
Good: Raisins
Why: They're an affordable and portable pick-me-up, ideal for stashing in your bag or desk drawer. Each little box contains a serving of fruit and nearly as much potassium as a small banana--but at 130 calories, they're a lighter pick than most energy bars. Researchers at the University of Illinois at Chicago College of Dentistry even debunked the myth that raisins stick to the teeth and cause cavities: They actually contain a natural compound that fights bacterial growth in the mouth.
Better: Dried apricots
Why: One-half cup contains all the virus-fighting vitamin A you need for the day, along with a big shot of potassium, plus the same amount of fiber as two slices of whole wheat bread. Sulfur dioxide is often added to lock in color, but if it doesn't agree with your gut, look for an unsulfured kind (it's browner but just as healthy) or freeze-dried apricots, which are additive free.
Best: Dried figs
Why: With about one-third of your day's supply of fiber per 1/2-cup serving, they pack more than any other dried fruit. Fiber helps you stay full, so figs are a powerful hunger suppressant. Each 1/2 cup has as much calcium as 1/2 ounce of cheese and contains phenols that may guard against heart disease and cancer, says Grotto.
10. In the Condiments Aisle
Good: Low-fat creamy salad dressing
Why: If you prefer creamy dressings (such as ranch or blue cheese), these are a perfect way to add flavor to your favorite greens without drowning them in extra calories or fat.
Better: Full-fat oil-based dressing
Why: The fats in oils like canola and olive are healthier for you. They're a good source of vitamin E and help your body soak up all the vitamins in veggies. In one study, people absorbed more carotenoids from a salad with full-fat dressing than with reduced-fat dressing. (Those eating fat-free dressing absorbed just traces.) The calories add up fast, so measure out a 2-tablespoon portion.
Best: Olive oil and flavored vinegar
Why: With a do-it-yourself dressing, you don't have to worry about the quality of the ingredients. Mix 2 teaspoons of olive oil (or canola or flaxseed--they all contain higher amounts of heart-healthy monounsaturated fat) with flavored vinegar such as raspberry, then toss in any herbs you like.
The 7 foods experts won't eat
How healthy (or not) certain foods are—for us, for the environment—is a hotly debated topic among experts and consumers alike, and there are no easy answers. But when Prevention talked to the people at the forefront of food safety and asked them one simple question—“What foods do you avoid?”—we got some pretty interesting answers. Although these foods don’t necessarily make up a "banned” list, as you head into the holidays—and all the grocery shopping that comes with it—their answers are, well, food for thought:
1. Canned Tomatoes
The expert: Fredrick vom Saal, PhD, an endocrinologist at the University of Missouri who studies bisphenol-A
The problem: The resin linings of tin cans contain bisphenol-A, a synthetic estrogen that has been linked to ailments ranging from reproductive problems to heart disease, diabetes, and obesity. Unfortunately, acidity (a prominent characteristic of tomatoes) causes BPA to leach into your food. Studies show that the BPA in most people's body exceeds the amount that suppresses sperm production or causes chromosomal damage to the eggs of animals. "You can get 50 mcg of BPA per liter out of a tomato can, and that's a level that is going to impact people, particularly the young," says vom Saal. "I won't go near canned tomatoes."
The solution: Choose tomatoes in glass bottles (which do not need resin linings), such as the brands Bionaturae and Coluccio. You can also get several types in Tetra Pak boxes, like Trader Joe's and Pomi.
2. Corn-Fed Beef
The expert: Joel Salatin, co-owner of Polyface Farms and author of half a dozen books on sustainable farming
The problem: Cattle evolved to eat grass, not grains. But farmers today feed their animals corn and soybeans, which fatten up the animals faster for slaughter. More money for cattle farmers (and lower prices at the grocery store) means a lot less nutrition for us. A recent comprehensive study conducted by the USDA and researchers from Clemson University found that compared with corn-fed beef, grass-fed beef is higher in beta-carotene, vitamin E, omega-3s, conjugated linoleic acid (CLA), calcium, magnesium, and potassium; lower in inflammatory omega-6s; and lower in saturated fats that have been linked to heart disease. "We need to respect the fact that cows are herbivores, and that does not mean feeding them corn and chicken manure," says Salatin.
The solution: Buy grass-fed beef, which can be found at specialty grocers, farmers' markets, and nationally at Whole Foods. It's usually labeled because it demands a premium, but if you don't see it, ask your butcher.
3. Microwave Popcorn
The expert: Olga Naidenko, PhD, a senior scientist for the Environmental Working Group,
The problem: Chemicals, including perfluorooctanoic acid (PFOA), in the lining of the bag, are part of a class of compounds that may be linked to infertility in humans, according to a recent study from UCLA. In animal testing, the chemicals cause liver, testicular, and pancreatic cancer. Studies show that microwaving causes the chemicals to vaporize—and migrate into your popcorn. "They stay in your body for years and accumulate there," says Naidenko, which is why researchers worry that levels in humans could approach the amounts causing cancers in laboratory animals. DuPont and other manufacturers have promised to phase out PFOA by 2015 under a voluntary EPA plan, but millions of bags of popcorn will be sold between now and then.
The solution: Pop natural kernels the old-fashioned way: in a skillet. For flavorings, you can add real butter or dried seasonings, such as dillweed, vegetable flakes, or soup mix.
4. Nonorganic Potatoes
The expert: Jeffrey Moyer, chair of the National Organic Standards Board
The problem: Root vegetables absorb herbicides, pesticides, and fungicides that wind up in soil. In the case of potatoes—the nation's most popular vegetable—they're treated with fungicides during the growing season, then sprayed with herbicides to kill off the fibrous vines before harvesting. After they're dug up, the potatoes are treated yet again to prevent them from sprouting. "Try this experiment: Buy a conventional potato in a store, and try to get it to sprout. It won't," says Moyer, who is also farm director of the Rodale Institute (also owned by Rodale Inc., the publisher of Prevention). "I've talked with potato growers who say point-blank they would never eat the potatoes they sell. They have separate plots where they grow potatoes for themselves without all the chemicals."
The solution: Buy organic potatoes. Washing isn't good enough if you're trying to remove chemicals that have been absorbed into the flesh.
5. Farmed Salmon
The expert: David Carpenter, MD, director of the Institute for Health and the Environment at the University at Albany and publisher of a major study in the journal Science on contamination in fish.
The problem: Nature didn't intend for salmon to be crammed into pens and fed soy, poultry litter, and hydrolyzed chicken feathers. As a result, farmed salmon is lower in vitamin D and higher in contaminants, including carcinogens, PCBs, brominated flame retardants, and pesticides such as dioxin and DDT. According to Carpenter, the most contaminated fish come from Northern Europe, which can be found on American menus. "You can only safely eat one of these salmon dinners every 5 months without increasing your risk of cancer," says Carpenter, whose 2004 fish contamination study got broad media attention. "It's that bad." Preliminary science has also linked DDT to diabetes and obesity, but some nutritionists believe the benefits of omega-3s outweigh the risks. There is also concern about the high level of antibiotics and pesticides used to treat these fish. When you eat farmed salmon, you get dosed with the same drugs and chemicals.
The solution: Switch to wild-caught Alaska salmon. If the package says fresh Atlantic, it's farmed. There are no commercial fisheries left for wild Atlantic salmon.
6. Milk Produced with Artificial Hormones
The expert: Rick North, project director of the Campaign for Safe Food at the Oregon Physicians for Social Responsibility and former CEO of the Oregon division of the American Cancer Society
The problem: Milk producers treat their dairy cattle with recombinant bovine growth hormone (rBGH or rBST, as it is also known) to boost milk production. But rBGH also increases udder infections and even pus in the milk. It also leads to higher levels of a hormone called insulin-like growth factor in milk. In people, high levels of IGF-1 may contribute to breast, prostate, and colon cancers. "When the government approved rBGH, it was thought that IGF-1 from milk would be broken down in the human digestive tract," says North. As it turns out, the casein in milk protects most of it, according to several independent studies. "There's not 100% proof that this is increasing cancer in humans," admits North. "However, it's banned in most industrialized countries."
The solution: Check labels for rBGH-free, rBST-free, produced without artificial hormones, or organic milk. These phrases indicate rBGH-free products.
7. Conventional Apples
The expert: Mark Kastel, former executive for agribusiness and codirector of the Cornucopia Institute, a farm-policy research group that supports organic foods
The problem: If fall fruits held a "most doused in pesticides contest," apples would win. Why? They are individually grafted (descended from a single tree) so that each variety maintains its distinctive flavor. As such, apples don't develop resistance to pests and are sprayed frequently. The industry maintains that these residues are not harmful. But Kastel counters that it's just common sense to minimize exposure by avoiding the most doused produce, like apples. "Farm workers have higher rates of many cancers," he says. And increasing numbers of studies are starting to link a higher body burden of pesticides (from all sources) with Parkinson's disease.
The solution: Buy organic apples. If you can't afford organic, be sure to wash and peel them first.
1. Canned Tomatoes
The expert: Fredrick vom Saal, PhD, an endocrinologist at the University of Missouri who studies bisphenol-A
The problem: The resin linings of tin cans contain bisphenol-A, a synthetic estrogen that has been linked to ailments ranging from reproductive problems to heart disease, diabetes, and obesity. Unfortunately, acidity (a prominent characteristic of tomatoes) causes BPA to leach into your food. Studies show that the BPA in most people's body exceeds the amount that suppresses sperm production or causes chromosomal damage to the eggs of animals. "You can get 50 mcg of BPA per liter out of a tomato can, and that's a level that is going to impact people, particularly the young," says vom Saal. "I won't go near canned tomatoes."
The solution: Choose tomatoes in glass bottles (which do not need resin linings), such as the brands Bionaturae and Coluccio. You can also get several types in Tetra Pak boxes, like Trader Joe's and Pomi.
2. Corn-Fed Beef
The expert: Joel Salatin, co-owner of Polyface Farms and author of half a dozen books on sustainable farming
The problem: Cattle evolved to eat grass, not grains. But farmers today feed their animals corn and soybeans, which fatten up the animals faster for slaughter. More money for cattle farmers (and lower prices at the grocery store) means a lot less nutrition for us. A recent comprehensive study conducted by the USDA and researchers from Clemson University found that compared with corn-fed beef, grass-fed beef is higher in beta-carotene, vitamin E, omega-3s, conjugated linoleic acid (CLA), calcium, magnesium, and potassium; lower in inflammatory omega-6s; and lower in saturated fats that have been linked to heart disease. "We need to respect the fact that cows are herbivores, and that does not mean feeding them corn and chicken manure," says Salatin.
The solution: Buy grass-fed beef, which can be found at specialty grocers, farmers' markets, and nationally at Whole Foods. It's usually labeled because it demands a premium, but if you don't see it, ask your butcher.
3. Microwave Popcorn
The expert: Olga Naidenko, PhD, a senior scientist for the Environmental Working Group,
The problem: Chemicals, including perfluorooctanoic acid (PFOA), in the lining of the bag, are part of a class of compounds that may be linked to infertility in humans, according to a recent study from UCLA. In animal testing, the chemicals cause liver, testicular, and pancreatic cancer. Studies show that microwaving causes the chemicals to vaporize—and migrate into your popcorn. "They stay in your body for years and accumulate there," says Naidenko, which is why researchers worry that levels in humans could approach the amounts causing cancers in laboratory animals. DuPont and other manufacturers have promised to phase out PFOA by 2015 under a voluntary EPA plan, but millions of bags of popcorn will be sold between now and then.
The solution: Pop natural kernels the old-fashioned way: in a skillet. For flavorings, you can add real butter or dried seasonings, such as dillweed, vegetable flakes, or soup mix.
4. Nonorganic Potatoes
The expert: Jeffrey Moyer, chair of the National Organic Standards Board
The problem: Root vegetables absorb herbicides, pesticides, and fungicides that wind up in soil. In the case of potatoes—the nation's most popular vegetable—they're treated with fungicides during the growing season, then sprayed with herbicides to kill off the fibrous vines before harvesting. After they're dug up, the potatoes are treated yet again to prevent them from sprouting. "Try this experiment: Buy a conventional potato in a store, and try to get it to sprout. It won't," says Moyer, who is also farm director of the Rodale Institute (also owned by Rodale Inc., the publisher of Prevention). "I've talked with potato growers who say point-blank they would never eat the potatoes they sell. They have separate plots where they grow potatoes for themselves without all the chemicals."
The solution: Buy organic potatoes. Washing isn't good enough if you're trying to remove chemicals that have been absorbed into the flesh.
5. Farmed Salmon
The expert: David Carpenter, MD, director of the Institute for Health and the Environment at the University at Albany and publisher of a major study in the journal Science on contamination in fish.
The problem: Nature didn't intend for salmon to be crammed into pens and fed soy, poultry litter, and hydrolyzed chicken feathers. As a result, farmed salmon is lower in vitamin D and higher in contaminants, including carcinogens, PCBs, brominated flame retardants, and pesticides such as dioxin and DDT. According to Carpenter, the most contaminated fish come from Northern Europe, which can be found on American menus. "You can only safely eat one of these salmon dinners every 5 months without increasing your risk of cancer," says Carpenter, whose 2004 fish contamination study got broad media attention. "It's that bad." Preliminary science has also linked DDT to diabetes and obesity, but some nutritionists believe the benefits of omega-3s outweigh the risks. There is also concern about the high level of antibiotics and pesticides used to treat these fish. When you eat farmed salmon, you get dosed with the same drugs and chemicals.
The solution: Switch to wild-caught Alaska salmon. If the package says fresh Atlantic, it's farmed. There are no commercial fisheries left for wild Atlantic salmon.
6. Milk Produced with Artificial Hormones
The expert: Rick North, project director of the Campaign for Safe Food at the Oregon Physicians for Social Responsibility and former CEO of the Oregon division of the American Cancer Society
The problem: Milk producers treat their dairy cattle with recombinant bovine growth hormone (rBGH or rBST, as it is also known) to boost milk production. But rBGH also increases udder infections and even pus in the milk. It also leads to higher levels of a hormone called insulin-like growth factor in milk. In people, high levels of IGF-1 may contribute to breast, prostate, and colon cancers. "When the government approved rBGH, it was thought that IGF-1 from milk would be broken down in the human digestive tract," says North. As it turns out, the casein in milk protects most of it, according to several independent studies. "There's not 100% proof that this is increasing cancer in humans," admits North. "However, it's banned in most industrialized countries."
The solution: Check labels for rBGH-free, rBST-free, produced without artificial hormones, or organic milk. These phrases indicate rBGH-free products.
7. Conventional Apples
The expert: Mark Kastel, former executive for agribusiness and codirector of the Cornucopia Institute, a farm-policy research group that supports organic foods
The problem: If fall fruits held a "most doused in pesticides contest," apples would win. Why? They are individually grafted (descended from a single tree) so that each variety maintains its distinctive flavor. As such, apples don't develop resistance to pests and are sprayed frequently. The industry maintains that these residues are not harmful. But Kastel counters that it's just common sense to minimize exposure by avoiding the most doused produce, like apples. "Farm workers have higher rates of many cancers," he says. And increasing numbers of studies are starting to link a higher body burden of pesticides (from all sources) with Parkinson's disease.
The solution: Buy organic apples. If you can't afford organic, be sure to wash and peel them first.
Sunday, November 29, 2009
FICO Reveals How Common Credit Mistakes Affect Scores
Disclosed for the 1st time, 'damage points' taken off for late payments
Borrowers already knew that late payments hurt their credit scores, but for the first time, they now know the extent of that damage.
Did you max out your credit card? Expect a credit score drop of 10 to 45 points. Declare bankruptcy? Your score will plummet by up to 240 points, and your odds of getting credit will nosedive with it.
The "damage points" data, unveiled recently by FICO, are part of the most revealing glimpse into the firm's once-secret -- and still mysterious -- credit scoring model. The new information discloses how many points borrowers' scores will drop when they make the most-common mistakes.
'Help People Understand' Scores
"I hope this information will help people to better understand FICO scores and the value for them of avoiding credit missteps. It illustrates key points such as the higher your score, the farther it can fall if you stumble," says FICO spokesman Craig Watts. "Getting and maintaining a good score isn't complicated. We all just need to pay our bills on time, keep credit card balances low and take on new debt sparingly. "
The greater transparency about FICO scores is important because American consumers' ability to get credit rises and falls with the number. FICO, the company that pioneered credit scoring, assigns consumers a three-digit number from 300 to 850, depending on how well they handle credit. Other companies also offer scores, but FICO's version is the most widely used by lenders in determining whether a consumer can borrow, and at what rate.
FICO's credit score has been around for decades, but only within the past decade have consumers gradually gained access to theirs. Though the raw numbers can be purchased, how they're figured remains a FICO secret, as closely guarded as the formula for Coca-Cola. Until Thursday, FICO revealed only broad categories of factors influencing the score, but not the number of points at stake for consumers who fail to pay as agreed. The "damage points" information, revealed in a report by personal finance writer Liz Pulliam Weston, will be made available through its myFICO.com Web site starting this weekend.
FICO's information shows that bankruptcy does the most serious damage to a credit score (up to 240 points), followed by foreclosure (up to 160 points) while maxing out a credit card has the least numerical impact (as few as 10 points).
Those with good or excellent credit -- so-called prime borrowers -- put more points at risk with each mistake. For example, someone with an average credit score of 680 who pays a bill 30 days late will see a drop of 60 to 80 points. But for someone with an excellent credit score -- 780 -- that same delinquency can send a FICO score tumbling by 90 to 100 points.
The Cost in Dollars
In order to show just how badly a drop in your FICO score can hurt your wallet, we spoke with members of the home mortgage, auto and credit card lending industries. We presented hypothetical scenarios of a consumer who decided to apply for a $200,000, 30-year mortgage; a $20,000, five-year auto loan and a credit card. While all the industry insiders stressed that a FICO score isn't the only factor in determining who gets credit and at what cost (other factors they cited include the borrower's debt-to-income ratio and whether they have already established a relationship with the lender), they were able to provide an idea of what a borrower who had the following credit scores could expect.
For a Consumer Who Started With a FICO Score of 780:
Following a 30-day late payment, the consumer's car loan rate would jump nearly 3 percent, costing the borrower $26 more each month.
Following a debt settlement, the consumer would pay as much as $109 more each month on a home mortgage.
For a Consumer Who Started With a FICO Score of 680:
Following a 30-day late payment, the consumer would pay $41 more each month for a car loan.
Following a 30-day late payment, the consumer would pay as much as $95 more each month on a home mortgage.
Following a debt settlement, the consumer would no longer qualify for a credit card.
Some Surprised By the Details
Consumer advocates say it's important for borrowers to know what can damage their FICO scores. "If they know it in advance, they won't go out and step in a pile of doo-doo. They won't go out and do some of these things," says Linda Sherry, director of national priorities with advocacy group Consumer Action. Even experts found some surprises in today's news. "FICO imposes bigger hits than I would have thought for being maxed out or 30-days late just once, reinforcing my view that it is a cruder, blunter instrument than they like to claim. Nevertheless, it is a powerful, widely used crude blunt instrument," says Ed Mierzwinski, consumer program director for the U.S. PIRG consumer advocacy group.
Of course, knowing the impact on a FICO score and actually avoiding these mistakes are two separate things: Amid rising unemployment and other daily financial struggles, paying bills and staying on-track financially becomes a much bigger challenge for many borrowers.
"Some of these things are out of their control," Sherry says of consumers.
Additionally, as Weston points out, consumers with identical FICO scores can have different credit histories. That means the same slip-up -- such as maxing out a credit card -- could have different impacts on consumers who have the same FICO score. In the examples they provided, FICO assumed each borrower had several active major credit cards, a mortgage, car loan and student loans.
Sherry acknowledges the benefit of putting a number to a financial blunder. "I don't think we necessarily knew the numbers that a bankruptcy could apply to a credit score," Sherry says.
Helping You Make Better Decisions
While knowing the numbers may not keep you filing for bankruptcy if given no other choice, the information may help you make the best decision when faced with a bad situation.
FICO scores -- and the access to credit they provide -- are a valuable asset to consumers and supply a safety net when incomes are stretched. It's an asset that needs to be protected, Sherry says, even if job loss or catastrophic illness makes bill paying problematic.
"In that period of time, paying down debt is the last thing on your mind. Paying the minimum payment may also be the last thing on your mind, but you'll be doing yourself a big favor if you do," Sherry says.
Borrowers already knew that late payments hurt their credit scores, but for the first time, they now know the extent of that damage.
Did you max out your credit card? Expect a credit score drop of 10 to 45 points. Declare bankruptcy? Your score will plummet by up to 240 points, and your odds of getting credit will nosedive with it.
The "damage points" data, unveiled recently by FICO, are part of the most revealing glimpse into the firm's once-secret -- and still mysterious -- credit scoring model. The new information discloses how many points borrowers' scores will drop when they make the most-common mistakes.
'Help People Understand' Scores
"I hope this information will help people to better understand FICO scores and the value for them of avoiding credit missteps. It illustrates key points such as the higher your score, the farther it can fall if you stumble," says FICO spokesman Craig Watts. "Getting and maintaining a good score isn't complicated. We all just need to pay our bills on time, keep credit card balances low and take on new debt sparingly. "
The greater transparency about FICO scores is important because American consumers' ability to get credit rises and falls with the number. FICO, the company that pioneered credit scoring, assigns consumers a three-digit number from 300 to 850, depending on how well they handle credit. Other companies also offer scores, but FICO's version is the most widely used by lenders in determining whether a consumer can borrow, and at what rate.
FICO's credit score has been around for decades, but only within the past decade have consumers gradually gained access to theirs. Though the raw numbers can be purchased, how they're figured remains a FICO secret, as closely guarded as the formula for Coca-Cola. Until Thursday, FICO revealed only broad categories of factors influencing the score, but not the number of points at stake for consumers who fail to pay as agreed. The "damage points" information, revealed in a report by personal finance writer Liz Pulliam Weston, will be made available through its myFICO.com Web site starting this weekend.
FICO's information shows that bankruptcy does the most serious damage to a credit score (up to 240 points), followed by foreclosure (up to 160 points) while maxing out a credit card has the least numerical impact (as few as 10 points).
Those with good or excellent credit -- so-called prime borrowers -- put more points at risk with each mistake. For example, someone with an average credit score of 680 who pays a bill 30 days late will see a drop of 60 to 80 points. But for someone with an excellent credit score -- 780 -- that same delinquency can send a FICO score tumbling by 90 to 100 points.
The Cost in Dollars
In order to show just how badly a drop in your FICO score can hurt your wallet, we spoke with members of the home mortgage, auto and credit card lending industries. We presented hypothetical scenarios of a consumer who decided to apply for a $200,000, 30-year mortgage; a $20,000, five-year auto loan and a credit card. While all the industry insiders stressed that a FICO score isn't the only factor in determining who gets credit and at what cost (other factors they cited include the borrower's debt-to-income ratio and whether they have already established a relationship with the lender), they were able to provide an idea of what a borrower who had the following credit scores could expect.
For a Consumer Who Started With a FICO Score of 780:
Following a 30-day late payment, the consumer's car loan rate would jump nearly 3 percent, costing the borrower $26 more each month.
Following a debt settlement, the consumer would pay as much as $109 more each month on a home mortgage.
For a Consumer Who Started With a FICO Score of 680:
Following a 30-day late payment, the consumer would pay $41 more each month for a car loan.
Following a 30-day late payment, the consumer would pay as much as $95 more each month on a home mortgage.
Following a debt settlement, the consumer would no longer qualify for a credit card.
Some Surprised By the Details
Consumer advocates say it's important for borrowers to know what can damage their FICO scores. "If they know it in advance, they won't go out and step in a pile of doo-doo. They won't go out and do some of these things," says Linda Sherry, director of national priorities with advocacy group Consumer Action. Even experts found some surprises in today's news. "FICO imposes bigger hits than I would have thought for being maxed out or 30-days late just once, reinforcing my view that it is a cruder, blunter instrument than they like to claim. Nevertheless, it is a powerful, widely used crude blunt instrument," says Ed Mierzwinski, consumer program director for the U.S. PIRG consumer advocacy group.
Of course, knowing the impact on a FICO score and actually avoiding these mistakes are two separate things: Amid rising unemployment and other daily financial struggles, paying bills and staying on-track financially becomes a much bigger challenge for many borrowers.
"Some of these things are out of their control," Sherry says of consumers.
Additionally, as Weston points out, consumers with identical FICO scores can have different credit histories. That means the same slip-up -- such as maxing out a credit card -- could have different impacts on consumers who have the same FICO score. In the examples they provided, FICO assumed each borrower had several active major credit cards, a mortgage, car loan and student loans.
Sherry acknowledges the benefit of putting a number to a financial blunder. "I don't think we necessarily knew the numbers that a bankruptcy could apply to a credit score," Sherry says.
Helping You Make Better Decisions
While knowing the numbers may not keep you filing for bankruptcy if given no other choice, the information may help you make the best decision when faced with a bad situation.
FICO scores -- and the access to credit they provide -- are a valuable asset to consumers and supply a safety net when incomes are stretched. It's an asset that needs to be protected, Sherry says, even if job loss or catastrophic illness makes bill paying problematic.
"In that period of time, paying down debt is the last thing on your mind. Paying the minimum payment may also be the last thing on your mind, but you'll be doing yourself a big favor if you do," Sherry says.
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