Credit score focus of new celeb-backed debit card

NEW YORK (AP) — Personal finance media personality Suze Orman is thinking big. She's the   first out of the gate in the fast-growing prepaid debit card market with a card that aims to help its users build a credit score. It's a gamble that could pay off, if it can help create a way measure the creditworthiness of millions who function outside the traditional financial system.
The latest in a string of celebrities to put their stamp on a prepaid card, Orman will likely avoid the criticism about high fees lobbed at earlier offerings, such as those of hip-hop mogul Russell Simmons and reality show stars the Kardashians. Orman's card costs $3 to obtain, and then just $3 a month, rivaling the hugely popular Walmart MoneyCard.
Although some will question how Orman will recoup the more than $1 million she has invested in the card when charging that little, the real twist isn't the low fee structure. Orman is working with credit reporting agency TransUnion to create a new kind of credit score for users of "The Approved" prepaid MasterCard, one that's based on their spending habits.
Right now, using debit cards — both the prepaid kind and those tied to bank accounts — does not influence an individual's credit score, which is calculated with data related to borrowing. If Orman's experiment is successful, this new type of score could be a game-changer for the estimated 60 million Americans who do most or all of their personal business in cash or with cash alternatives like prepaid cards.
The TV adviser said she approached several companies, urging them to agree to develop such a score, and TransUnion ultimately agreed to gather spending data for 18 to 24 months. It will use that data to try to come up with a formula that works as a way to predict whether the user is a good risk for lenders.
"This is truthfully a work in progress," said Orman.
Banks and other lenders are interested in creating ways to measure how prepaid cards are used, because of the huge market they represent. Consumers loaded an estimated $70.7 billion onto prepaid cards in 2011, up from $2.7 billion in 2005, according to consultancy Mercator Advisory Group.
Mercator projects the market will top $120 billion this year if adoption continues at the same pace.
In general, users can be divided into three groups. The first subset is those caught up in the economy — people who had good credit until it was damaged by events like unemployment or foreclosure. Second are those who have not yet built credit histories, mainly the young and recent immigrants. The third group avoids banks, often because of negative experiences, such as racking up high overdraft fees.
"Wouldn't it be fabulous if, for the first time in history, people are literally rewarded for spending cash, versus penalized, in my opinion, for doing so?" Orman said.
The problem with traditional credit scores from FICO Inc. and its competitors is that they measure how well individuals keep up with their payments, but don't pay any attention to their overall financial health, she said. "Scoring doesn't question where the money is coming from to make payments."
Prepaid cards have already filled some of the void for those who don't use banks, especially because they can be used to receive paychecks via direct deposit. But because they don't contribute to credit scores, the cards can't help users get a mortgage, a car loan or a credit card.
Not having a credit score, or having a low one, also drives up the cost of living in other ways. Lower scores can mean higher car insurance rates, higher rent, difficulty getting a job and paying higher interest rates for any credit available. People with little credit history — known as a "thin file" in the industry — are also the most likely to use alternative services like payday lenders, check cashing stores and bill pay services. These are expensive options when compared with credit cards and banks.
FICO Inc. and other companies use data tied to borrowing to determine a score meant to measure the likelihood an individual will pay back future loans. FICO's 300-to-850 scale is based on an individual's history making payments on loans, the percentage of available credit that is being used and how long the individual has used credit, among other data.
Those with thin credit files have a better chance of having their creditworthiness reflected by FICO's "expansion score," which factors in data like utility bill payments and rent payments. FICO CEO Mark Greene said the expansion scores have shown that the population without traditional scores mirrors to the larger population in terms of credit risk. Other credit score providers are beginning to provide measures based on utility payments and other nontraditional data.
One big difference for developing a prepaid score, however, is that these alternatives still measure how well individuals meet obligations, not how they spend the rest of their income.
"Spending is not actually a great indicator of the thing that we're trying to measure, which is the likelihood you're going to pay your bill," Greene said. "We need to be careful about how we approach that issue."
Another issue a prepaid-linked score must address is the fact that the typical reloadable card is used for just three to four months, said Brian Riley, who analyzes the card market for the consultant The Tower Group.
That timeframe is likely to expand, however, because more users are beginning to have their paychecks deposited to reload prepaid cards. Adding rewards and services, and cutting fees, may also increase customer loyalty.
Orman is adamant that her card will carry only a $3-per-month fee for users who load at least $20 per month onto it. Fees will rise only if the user uses ATMs outside the network it is linked to when withdrawing cash. Consumers who use The Approved Card will also get daily text messages updating their balance, along with one after each purchase, and other free services like ID theft monitoring, credit monitoring and free credit reports from TransUnion.
The media star, whose new show on the Oprah Winfrey Network premieres Monday, said she knows creating the score will be an uphill battle, but believes that if successful, it will help both lenders and borrowers. "You've got to start it somewhere, and this is the beginning of that process.

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Rate on 30-year mortgage drops to record 3.89 pct.

 Fixed mortgage rates fell once again to a record low, offering a great opportunity for those who can afford to buy or refinance homes. But few are able to take advantage of the historic rates.
Freddie Mac said Thursday the average rate on the 30-year fixed mortgage fell to 3.89 percent. That's below the previous record of 3.91 percent reached three weeks ago.
Records for mortgage rates date back to the 1950s.
The average on the 15-year fixed mortgage ticked down to 3.16 percent. That's down from a record 3.21 percent three weeks ago.
Mortgage rates are lower because they track the yield on the 10-year Treasury note, which fell below 2 percent. They could fall even lower this year if the Fed launches another round of bond purchases, as some economists expect.
Average fixed mortgage rates hovered around 4 percent at the end of 2011. Yet many Americans either can't take advantage of the rates or have already done so.
High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don't want to sink money into a home that they fear could lose value over the next few years.
Mortgage applications have fallen slightly on a seasonally adjusted basis over the past four weeks, according to the Mortgage Bankers Association.
Frank Nothaft, Freddie Mac's chief economist, said that until hiring picks up and unemployment drops significantly, the impact of lower mortgage rates will remain muted.
Previously occupied homes are selling just slightly ahead of 2010's dismal pace. New-home sales in 2011 will likely be the worst year on records going back half a century.
Builders hope that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose in December to its highest level in more than a year.
But so far, they have had little impact on the depressed housing market.
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for the 30-year loan fell to 0.7 from 0.8; the average on the 15-year fixed mortgage was unchanged at 0.8.
For the five-year adjustable loan, the average rate declined to 2.82 percent from 2.86 percent. The average on the one-year adjustable loan fell to 2.76 percent from 2.80 percent.
The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.

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First Person: What My College Degree Means to Me

Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.
My college degree helped me pursue a successful 30-year career in advertising and public relations. However, it only happened after I realized I had not made the right decision in choosing my college major.
Pursuing The Major Course I Wanted
It all began when I had earned four years of tuition under the GI Bill of Rights by serving in the U.S. Navy. Ever since childhood, I had wanted to be an artist, and that was my chance to enroll as a fine arts freshman at the Philadelphia Museum College of Art (now the University of the Arts).
An Enjoyable Fine Arts Education
Throughout my undergraduate years, I appreciated the challenges and encouragement of the school's excellent teaching staff. My courses consisted of drawing, painting, sculpture and other fine arts classes. Some of my paintings were accepted for exhibition at local galleries. I was graduated with top honors and the degree of bachelor of fine arts.
Then it was time for me to earn a living from what I had learned in four years of college. I made the rounds of the many galleries in Philadelphia and New York selling my art, and had some moderate success. However, the sales were few and far between, and my income wasn't nearly enough to support myself.
Had I Made an Error in Judgment?
After a year, I came to the conclusion that I had chosen a field that, while traditionally attractive, wasn't practical in the reality of today's business world. While I hadn't wasted my four years of fine arts studies, they had not prepared me for the necessity of making a living.
I had several choices. I could go on painting, get some kind of part-time job to pay my bills, and hope I'd eventually become a successful exhibiting artist. The other choice was to go back to college and major in practical business subjects.
Fortunately, an application I'd sent to the University of Pennsylvania earned me a lab assisantship and free tuition at the Annenberg Graduate School of Communications there. I majored in mass communications and public relations, with a minor in graphic arts. After two years, and armed with a much more practical resume, I began another job search.
A Favorable Career Turn
Another fortunate opportunity coincided with earning my Master of Arts in Communications degree. Prudential Financial, Inc. was just establishing an Eastern regional office in a Philadelphia suburban area, and hiring a staff of more than 3,000 employees. I applied for the newly-created position of Public Relations and Advertising Manager, and was hired to direct the 30-person creative staff.
I recently retired after 30 years with Prudential. Today I consider my education choices and experiences may be of value to college students in the same situation I was after earning my bachelor's degree. Looking back, I had not realized then the impracticality of attempting a fine arts path in the real world where income opportunities are very limited.
Business-related degrees are essential in finding practical career promises. I believe my decision to enhance my education goals beyond fine arts to communications offered me those opportunities. For today's students, armed with the right credentials and personal determination, there's no limit to the heights that talent, hard work and ambition can earn for them.

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Fake John le Carré Twitter Account Fakes J.K. Rowling's Fake Twitter Death

We've seen "Cormac McCarthy" Tweet apocalyptic non sequiturs. "Philip Roth" promised us a bite-sized short story. Now a fake Twitter account for British spy novelist John le Carré is spreading bizarre death rumors about J.K. Rowling. After a few days of Tweeting harmless missives, the week-old handle @JLecarre dropped this would-be bombshell on its nearly 2,500 followers Wednesday morning:
A terrible news. My publisher phones me announcing that J.K. Rowling dies by accident. Few minutes ago. No words!
— John le Carré (@JLecarre) January 2, 2013
OK, there are at least three dead-giveaways that this is a fake account. One: If J.K. Rowling had died, does anyone credibly think John le Carré would be the one breaking the news? Rowling and le Carré don't even share a publisher—he's with Penguin and she's printed by Little, Brown and Company—making this story even more implausible. Two: As noted by le Carré's literary agent Jonny Geller, the "L" in the author's name shouldn't be capitalized, as it is in the handle of this hoax account. Three: Phrases like "a terrible news" and "my publisher phones me" sound more like snippets from an ESL workbook than lines from an author praised for his chilly, controlled prose style. This could again be the work of Italian media troll Tommaso De Benedetti, who copped to creating a fake Philip Roth account recently. "Twitter works well for deaths," he told The Guardian's Tom Kington, describing his M.O. for spreading misinformation about the deaths of public figures like Fidel Castro and Pedro Almodóvar.

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Kicked Off Facebook, Kid Creates Own Social Network

If you can't join it, create your own.
That's the attitude one Florida preteen ran with after his parents banned him from using Facebook. Instead of begging or slamming doors when his account was deactivated, the 11-year-old launched his own social network tailored specifically to children.
Grom Social founder Zachary Marks had a Facebook account for roughly a week despite being two years too young to join the site, having lied about his age to create an account. And when his parents discovered that he may have been engaging in risky online activities, they pulled the plug.
"I spent all my time on the computer chatting with friends. Then, I made mistakes," Marks explained on the Grom Social About page. "One of my adult friends cursed and posted something inappropriate, and I cursed back. Also, I friend-requested grownups who I did not know. About a day later, my dad found out. He was really mad. I had to deactivate my account."
Marks said he wasn't interested in any existing, kid-friendly, social networks — "They were all childish," he said — so he set out to create one for "Groms," a slang term for young surfers that he repurposed to mean something close to "precocious kid."
In order to keep kid members safe, only parents and parent-approved adults can join Grom Social. Parents of kid members are kept up to date on their youngster's online activities via email. The site also has a built-in language filter to keep the expletives from flying straight into kids' virgin eyes.
Grom Social is also compliant with COPPA, the Children's Online Privacy Protection Act, a controversial law aimed at keeping kids safe online that some argue is ineffective and unconstitutionally limits children's First Amendment rights.
Under COPPA, websites, apps and plug-ins are not allowed to collect information from children less than 13 years old without their parent's express consent. The burden of verification, however, simply isn't worth it to most mainstream social networks, including Facebook, Twitter, Tumblr and Foursquare, so they ban members under 13.
To date, Grom Social has almost 7,000 members and is open to users under 15 in the United States and Canada.

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Never-Before-Seen Stage of Planet Birth Revealed

Astronomers studying a newborn star have caught a detailed glimpse of planets forming around it, revealing a never-before seen stage of planetary evolution.
Large gas giant planets appear to be clearing a gap in the disk of material surrounding the star, and using gravity to channel material across the gap to the interior, helping the star to grow. Theoretical simulations have predicted such bridges between outer and inner portions of disks surrounding stars, but none have been directly observed until now.
An international team of astronomers have used the partially completed Atacama Large Millimeter/submillimeter Array (ALMA) to study a young star about 450 light-years from Earth. They identified two thin filaments of gas streaming from the outer disk to the inner, across a broad gap cut by young planets.
"Currently, the only mechanism known to produce such gap-crossing dense molecular flows, with residual carbon monoxide gas more diffusely spread out inside the gap, is planetary formation," lead scientist Simon Casassus of the University of Chile told SPACE.com in an email. [Video: Baby Planets Form Bridge Around Star]
Bridging the gap
Far from Earth, the fledgling star HD 142527 is nearing the end of its formation process. Around 2 million years old, the young star is about twice as massive as the sun, though it is still slowly growing. A disk of spinning dust and gas left over from its formation surrounds the star, and from this material, planets are being created.
As baby planets, or planetesimals, travel through the disk, they absorb the material around them, creating gaps. Such paths have been seen in a number of newborn systems. HD 142527 boasts a gap that starts at a point equivalent to Saturn's position in the solar system and extends outward 14 times as far. The gap, which scientists had previously measured, is so large that several planets would be required to clear it of debris.
Using ALMA to observe the system, Casassus and his team have found that the gap is not completely empty. Two filaments reach from the outer disk to the inner, indicating that at least two young planets exist within the space.
The gravity of the planets draws material from the outer ring inward. But while some of the gas and dust falls into orbit around the young gas giants, a fraction of it overshoots the planetesimals, traveling instead to the inner disk. Eventually, the star absorbs the material.
These bridges are important to the continued growth of the system's young sun. The inner disk around the star is too small to sustain its growth; Casassus and his team concluded that the disk around HD 142527 would be depleted within a year without a bridge. Planets funneling material from the outer disk to the inner would help nourish their star.
The process won't continue forever, however.

"Eventually, the proto-gaseous giants will exhaust the material within their radius of influence," Casassus said. "How much material will have infallen, in what timescales, and how this impacts the planet location and eventual migration are all open questions in the field of planet formation. Our observations are a step forward."
Mind the gap
In addition to revealing the bridges between the two disks, ALMA's detailed measurements showed that the gaps weren't completely empty. Instead, they contain traces of carbon monoxide gas.
"This residual gas was predicted by all dynamical calculations, but previous detections were not as clear-cut and direct as the ALMA result," Casassus said.
The data was taken by ALMA during its first year of observation. The array of 66 telescopes, set up in Chile, is still under construction but should be completed this year, at which point Casassus plans to observe the system in greater detail.
Although the dense gas of the filaments would obstruct a direct view of the young planets, studying the system at the higher resolution of the completed ALMA could reveal knots along the filaments that could signify their location.
At the same time, a more precise examination of the leftover gas in the gaps could help astronomers to narrow down the mass of the developing planets.

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Dramatic Video of Helicopter Rescue Gone Awry

A swimmer stranded in open water at Copacabana Beach in Rio de Janeiro got more than he bargained for when he was being rescued via helicopter. Of course the last thing the first responders and the person being rescued wanted was for something to go wrong---particularly with the chopper itself. But that's exactly what happened.
After a fire department team used a winch to lift the stranded swimmer out of the ocean, the helicopter suffered what officials called an "unspecified mechanical failure," and the pilot, who feared landing on the crowded beach, avoided it altogether and touched down on the water instead. Remarkably, the rescuers and the swimmer sustained only minor injuries.
Just after the crash-landing on the water, onlookers, who could be heard screaming, rushed into the ocean to help the victims. Then two other rescue choppers arrived to complete the rescue effort. Once the second rescue mission proved successful, onlookers gave the first-responders a well-deserved round of applause. Commenters who have seen the video online are also giving the rescuers praise for their effort. One person singled out the pilot for his graceful landing on the water. "That was a well executed autorotation. An excellent piece of flying."
The term autorotation refers to the maneuver used by a helicopter pilot when there is a power failure. Because of this move, the victims escaped more serious injuries.

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Photos of the Day

A participant lights a candle next to a sign during a vigil for the Indian rape victim, who passed away last Friday, in Singapore January 2, 2013. The death of the 23-year-old woman, who has not been named, prompted street protests across India, international outrage and promises from the government of tougher punishments for offenders. About 150 people took part in the vigil in Singapore. REUTERS/Edgar Su

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Reid among 7 NFL coaches sacked in firing frenzy

Andy Reid is the winningest coach in the history of the Philadelphia Eagles. Lovie Smith led the Chicago Bears to the 2007 Super Bowl.
Now they're looking for work.
Seven coaches and five general managers were fired Monday in a flurry of pink slips that were delivered the day after the regular-season ended.
Ken Whisenhunt is out after helping Arizona reach the Super Bowl following the 2008 season. Also gone: Norv Turner in San Diego, Pat Shurmur in Cleveland, Romeo Crennel in Kansas City and Chan Gailey in Buffalo.
Three teams made it a clean sweep, saying goodbye to the GM along with the coach — San Diego, Cleveland, Arizona. General managers also were fired in Jacksonville and New York, where Rex Ryan held onto his coaching job with the Jets despite a losing record.
Reid was the longest tenured of the coaches, removed after 14 seasons and a Super Bowl appearance in 2005 — a loss to New England. Smith spent nine seasons with the Bears.
Turner has now been fired as head coach by three teams. San Diego won the AFC West from 2006-09, but didn't make the postseason the last three years under Turner and GM A.J. Smith.
"Both Norv and A.J. are consummate NFL professionals, and they understand that in this league, the bottom line is winning," Chargers President Dean Spanos said in a statement.
Whisenhunt was fired after six seasons. He had more wins than any other coach in Cardinals history, going 45-51, and has one year worth about $5.5 million left on his contract. GM Rod Graves had been with Arizona for 16 years, nine in his current position. A 5-11 record after a 4-0 start cost him and Whisenhunt their jobs.
Gailey was dumped after three seasons with the Bills; Shurmur after two; and Crennel had one full season with the Chiefs.
Reid took over a 3-13 Eagles team in 1999, drafted Donovan McNabb with the No. 2 overall pick and quickly turned the franchise into a title contender.
But the team hasn't won a playoff game since 2008 and after last season's 8-8 finish, owner Jeffrey Lurie said he was looking for improvement this year. Instead, it was even worse. The Eagles finished 4-12.
"When you have a season like that, it's embarrassing. It's personally crushing to me and it's terrible," Lurie said at a news conference. He said he respects Reid and plans to stay friends with him, "but, it is time for the Eagles to move in a new direction."
Shurmur went 9-23 in his two seasons with the Browns, who will embark on yet another offseason of change — the only constant in more than a decade of futility. Cleveland has lost at least 11 games in each of the past five seasons and made the playoffs just once since returning to the NFL as an expansion team in 1999.
"Ultimately our objective is to put together an organization that will be the best at everything we do," Browns CEO Joe Banner said. "On the field, our only goal is trying to win championships."
Crennel took over with three games left in the 2011 season after GM Scott Pioli fired Todd Haley. Kansas City will have the No. 1 pick in the NFL draft as a result of having one of the worst seasons in its 53-year history. The only other time the Chiefs finished 2-14 was 2008, the year before Pioli was hired.
"I am embarrassed by the poor product we gave our fans this season, and I believe we have no choice but to move the franchise in a different direction," Chiefs chairman Clark Hunt said in a statement.
Gailey, the former Dallas Cowboys coach, compiled a 16-32 record in his three seasons in Buffalo, never doing better than 6-10.
"This will probably be, and I say probably, but I think it will be the first place that's ever fired me that I'll pull for," Gailey said.
Smith and the Bears went 10-6 this season and just missed a playoff spot. But Chicago started 7-1 and has struggled to put together a productive offense throughout Smith's tenure. His record was 81-63 with the Bears, and he took them to one Super Bowl loss and to one NFC championship game defeat.
Receiver and kick return standout Devin Hester was bitter about Smith's firing.
"The media, the false fans, you all got what you all wanted," Hester said as he cleared out his locker. "The majority of you all wanted him out. As players we wanted him in. I guess the fans — the false fans — outruled us. I thought he was a great coach, probably one of the best coaches I've ever been around."
The fired GMs included Mike Tannenbaum of the Jets; Gene Smith of the Jaguars; Tom Heckert of the Browns; Smith of the Chargers and Graves of Arizona.
"You hope that those guys that obviously were victims of black Monday land on their feet," Rams coach Jeff Fisher said. "You've got guys that have been to Super Bowls and won championship games and all of a sudden they've forgot how to coach, I guess.

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Regular season winners don't always make champions

The Denver Broncos and Atlanta Falcons, who tied for the league's best record at 13-3, are well aware of one of the NFL's biggest truisms: more often than not, the regular season is for suckers.
Over the last decade, just two of the 13 teams that had the best regular season record — or tied for the best mark — went on to win the Super Bowl: the '02 Buccaneers and the '03 Patriots.
The last eight teams to enter the playoffs with the best record bowed out before they could put their fingerprints on the Lombardi Trophy and revel in a rain of confetti.
Both the Broncos and Falcons are promising to practice like champions this week and not allow rest and relaxation to turn into rust and ruin.
In the last seven seasons, three No. 6 seeds and a No. 4 seed ended up winning it all, giving hope to the likes of the Ravens, Redskins, Bengals and Vikings in this year's playoff pool.
A year ago, the Green Bay Packers rested their regulars in the season finale and they lost their edge, becoming the first 15-1 team to lose its first playoff game — to a New York Giants team that was 7-7 in mid-December and went on to win it all.
"That's kind of what it was for us when I was in Indy," Broncos wide receiver Brandon Stokley said of the '05 Colts, who went 14-2 but lost to Pittsburgh in the divisional round. "We kind of rested the last week, then we had a bye. It's too much. So, I like just grinding every week, just playing football."
That's exactly what Peyton Manning's new team did, securing the AFC's top seed Sunday with its 11th straight win.
Along with the Falcons, Patriots and 49ers, the Broncos get a break this week, one that can prove a pitfall as much as a profit.
"We've just got to practice like we're playing this week," Denver receiver Eric Decker said.
While the Broncos stormed into the playoffs, the Falcons, who already had the NFC's top seed secured, didn't gain any momentum Sunday, losing to Tampa Bay.
"Before this game was played, we were the No. 1 seed in the playoffs, at the end of the game, nothing has changed," Falcons tight end Tony Gonzalez reasoned. "We're a very good team; we'll just use this as a wake-up call."
Says another Atlanta veteran, Asante Samuel: "We're going to practice like champs. And we're going to play like champs from now on."
So will the Broncos. Coach John Fox is using the bye week to stay sharp, calling for short, crisp practices on Wednesday, Thursday and Friday and a mandatory weightlifting session Saturday, mainly to keep the team "focused, not concerned with flights to other states and those type of things, especially close states."
Like Nevada, where oddsmakers have made the Broncos the favorite to win the Super Bowl.
Of course, the Packers were in this position last year.
It's not just the NFL where the season's best team usually falters in the playoffs.
In the last 10 seasons, only two teams in each of the other major pro sports leagues parlayed the best regular-season record into a championship, according to STATS, LLC. They were: the 2007 Red Sox and the '09 Yankees, the 2002-03 Spurs and the '07-08 Celtics and the Red Wings in 2001-02 and '07-08.
Since the first Super Bowl, the team with the best regular-season record has won just 21 of 46 championships, or 46 percent, which is more than in the NHL (42 percent), NBA (41 percent) and MLB (28 percent), according to STATS.
"Everyone wants to have the best record, win the division and play at home for the playoffs, but in my opinion, the team that is playing the best has the best opportunity," said NFL Network analyst Kurt Warner, a former MVP and Super Bowl champion. "This game is always about confidence and momentum. If you have it, you're tough to beat, nobody wants to play you and it gives you a distinct advantage. It starts in the regular season and you want to be playing well down the stretch."
With that in mind, here's how the dozen playoff teams rank from hottest to coolest:
1. Broncos (13-3) — They haven't lost since a 31-21 setback at New England on Oct. 7, before Manning got his bearings and found a comfort zone with his new teammates.
2. Redskins (10-6) — They've won seven straight games since coach Mike Shanahan's comments about playing for next year (well, it is 2013 now!) after a loss to Carolina on Nov. 4 dropped them to 3-6.
3. Patriots (12-4) — Their only loss in their last 10 games was to San Francisco two weeks ago that snapped their 21-game home winning streak in December. Even in defeat, Tom Brady was spectacular as New England nearly became the first team since 1980 to win a game after trailing by 28.
4. Seahawks (11-5) — Forget the "Fail Mary" touchdown/touchback ending that gave Seattle a disputed win over the Packers in Week 3 and hastened the return of the regular officials. The real robbery was the selection of QB Russell Wilson in the third round of the draft. He's guided them to five straight wins.
5. Bengals (10-6) — Cincinnati matched the best finish in club history, winning seven of its last eight games behind Andy Dalton and A.J. Green, who will now try to secure the Bengals' first playoff win since 1990.
6. Colts (11-5) — Indy won nine of its last 11 despite a soft defense, rallying around assistant coach Bruce Arians, who took over while coach Chuck Pagano was treated for leukemia. Pagano is back and the Colts have gotten over their breakup with Manning and moved on with rookie Andrew Luck.
7. Packers (11-5) — Green Bay won nine of its last 11 but couldn't close out the season with a win at Minnesota that would have ensured them a first-round bye. Maybe that's a good thing for a team that won it all as a wild card two years ago.
8. Vikings (10-6) — Although Adrian Peterson came up just short of breaking Eric Dickerson's single season rushing record, he carried the Vikings into the playoffs with wins in their last four games.
9. 49ers (11-4-1) — San Francisco lost to division rivals St. Louis and Seattle in December, but Colin Kaepernick and Michael Crabtree put the 49ers into the playoffs with some much-needed momentum with dazzling performances in a win over Arizona on Sunday.
10. Falcons (13-3) — Atlanta lost two of its last four, but they didn't rest their regulars Sunday, when they lost to the Buccaneers and also lost two key defensive players to injuries in pass-rusher John Abraham and cornerback Dunta Robinson.
11. Ravens (10-6) — Baltimore lost four of its last five and changed offensive coordinators in December. The Ravens used their regular-season finale at Cincy to rest their regulars, sitting banged-up playmakers Anquan Boldin, Haloti Ngata and Terrell Suggs while pulling Joe Flacco and Ray Rice after only two series.
12. Texans (12-4) — For much of the year, they were the NFL's darlings behind J.J. Watt, Andre Johnson and Arian Foster, but they caved in December, losing three of their last four and falling from the top seed in the AFC to the third. Instead of a bye week to rest up, they get a short week to play Cincinnati.
All of this isn't to say the hottest team will be crowed champion or the coolest one has no shot.
"I think there are a lot of formulas," Fox said. "If you look at history, there are plenty of different scenarios. At the end of the day, you want to be playing your best football in January so you can get to February. That's really the only formula I know that's 100 percent.

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