In today’s credit-centric economy, maintaining a healthy credit score is more crucial than ever. One of the most effective ways to ensure good credit health is by regularly reviewing your annual credit reports from all three major credit reporting agencies: Equifax, Experian, and TransUnion. This practice not only helps you stay informed about your financial status but also protects you from potential fraud and errors that could negatively impact your credit score.
Understanding Your Credit Report
A credit report is a detailed record of your credit history, including information about credit accounts, payment history, and any public records such as bankruptcies or liens. Each of the three major credit reporting agencies collects and maintains this information independently, which means that your credit report from Equifax may differ slightly from the one provided by Experian or TransUnion. By reviewing all three reports, you get a comprehensive view of your credit history and can identify any discrepancies or inaccuracies.
Detecting Errors and Fraud
Errors on credit reports are more common than is often thought. According to a study by the Federal Trade Commission, one in five consumers has an error on at least one of their credit reports. These errors can range from incorrect personal information to inaccurate account details or even accounts that do not belong to you. By reviewing your credit reports annually, you can spot these errors early and take steps to correct them before they cause significant damage to your credit score.
In addition to errors, reviewing your credit reports can help you detect signs of identity theft. If you notice unfamiliar accounts or inquiries on your report, it could be a sign that someone has stolen your personal information and is using it to open credit accounts in your name. Early detection is key to minimizing the damage caused by identity theft, and regularly checking your credit reports is one of the best ways to catch fraudulent activity quickly.
Improving Your Credit Score
Your credit score is a numerical representation of your creditworthiness, and it plays a significant role in your ability to obtain loans, credit cards, and even housing. By reviewing your credit reports, you can identify areas where you can improve your credit score. For example, you might notice that you have high credit card balances or a history of late payments. By addressing these issues, you can work towards improving your credit score over time.
Reviewing a copy of your credit report from each credit reporting agency at least once a year is a great way to discover errors that may negatively impact your credit worthiness. (Adobe Stock photo)
Taking Advantage of Free Reports
Under the Fair Credit Reporting Act (FCRA), you are entitled to one free credit report from each of the three major credit reporting agencies every 12 months. In 2024, this changed to free weekly copies of your credit report from each agency. This means you can access your credit reports from Equifax, Experian, and TransUnion at no cost, giving you the opportunity to review your credit history without any financial burden. To obtain your free reports, you can visit AnnualCreditReport.com, the only authorized website for free credit reports. You will never be asked to pay for your credit report on this site. If you are, you are on the wrong site.
Reviewing your credit report from all three major credit reporting agencies is a vital step in maintaining your financial health. By staying informed about your credit history, detecting errors and fraud early, and taking steps to improve your credit score, you can ensure that you are in the best possible position to achieve your financial goals. Don’t wait until it’s too late—make reviewing your credit reports a regular part of your financial routine.
Managing debt effectively involves setting clear, achievable goals and creating a structured plan. A good approach is using the SMART framework—ensuring that your debt repayment strategy is Specific, Measurable, Achievable, Relevant, and Time-bound. Here’s how you can apply SMART strategies:
Be Specific! Define the exact amount of debt you want to pay off. Instead of a vague goal like “reduce debt,” specify “pay off $5,000 in credit card debt.” List Your debts! Break down which debts need to be paid first, whether they are credit cards, loans, or other liabilities.
Make it Measurable! Identify a way to track your progress. Regularly check how much debt you’ve repaid. For example, you could track your debt in monthly statements or use budgeting apps. Also, set milestones. Break your larger goal into smaller, measurable targets – for example, paying off $1,000 of a $5,000 debt each month.
Is itAchievable? Set a realistic repayment plan. Consider your current financial situation—how much you can afford to pay each month. Make sure your goal is within reach given your income and expenses. Consider interest rates and prioritize high-interest debts first, such as credit cards, to reduce the overall amount paid in interest over time.
How Relevant is this? The debt repayment should tie into your broader financial goals, whether it’s improving your credit score, saving for a down payment, or achieving financial independence. Understand why paying off your debt is important to you. Whether it’s peace of mind, improving your financial health, or reducing stress, make sure your goal is personally meaningful.
It’s got to beTime-bound! Assign a target date for paying off your debt. For example, “Pay off $5,000 by the end of 2025.” Check in monthly or quarterly to ensure you’re on track and adjust as needed. This will help you stay focused on meeting your deadline.
By following these SMART principles, you’ll have a clearer, actionable plan that can help you stay on track with your debt management.
Using IFAS-generated budgeting tools, young people can learn to manage their money and begin saving and investing in the future. (UF/IFAS Photo: Tyler Jones. IFAS Extension calendar 2009)
Once you have taken the steps to build your SMART debt management plan, consider using the debt snowball or debt avalanche methods to aid in reaching your goal. These methods are popular strategies for debt repayment. Debt snowball involves paying off the smallest debt first, while Avalanche focuses on paying off the highest-interest debt first.
Find an accountability person that you can share your goal with and who will support you as you work to meet your goals. Planning regular check-ins with this person to monitor progress helps maintain positive energy and will lead to success.
It is a good idea to work on building a small emergency fund while paying off debt to avoid falling back into debt in case of unexpected expenses. Once you have eliminated your debt, grow your emergency fund even more.
It is important to celebrate your success of managing and erasing your debt. Just be sure the celebration doesn’t lead to finding yourself in debt again! A celebration might be a call to a friend or family member to share the great news or helping someone else use the SMART principles to set a goal they have.
For more information on managing your debt, contact your local UF IFAS County Extension Office.
With summer in full swing, you’ve probably noticed an uptick in your electricity bill. The hot temperatures and high humidity have been giving your air conditioner a real workout! Since your heating, ventilation, and cooling (HVAC) system uses the most electricity of any item in your home, taking steps to improve its efficiency will save energy and money. Try these five easy ways to stay cool for less:
Adjust the thermostat. Set the air conditioner thermostat to 78o F. For every degree setting below 78o F, you spend up to 4% more in cooling costs.
Use fans. Ceiling and floor fans move air to create a breeze, which can make a room feel up to four degrees cooler than the actual temperature. This allows you to set the thermostat higher and still be comfortable. Ceiling fan blades should move in a counterclockwise direction to create a downdraft – you can adjust the direction by moving the switch located on the side of the motor casing. Tip: Fans cool people, not rooms, so turn off the fan when you leave the room to save more money on your power bill.
Use window coverings to control sunlight. East- and west-facing windows catch the brunt of the sun’s heat, adding extra warmth to those sides of your home. Keep blinds and drapes closed to block out morning or afternoon sunlight so your air conditioner doesn’t have to work harder to cool those rooms.
A dirty filter forces your HVAC system to work harder, raising your power bill and shortening the lifespan of the unit. (Photo source: Judy Corbus)
Change the air filter. Dirty air filters restrict airflow and may cause the HVAC system to run longer, increasing your energy bill and potentially shortening the life of the unit. Many newer HVAC systems shut down if the filter becomes too clogged for air to pass through the filter; this prevents the compressor motor from overheating. When this occurs, a service technician must inspect and reset the unit, resulting in a service charge. During periods of high use or if you live in a dusty area or have pets, check and change your filter monthly, even if the filter is labeled to last three months. Pick a day that’s easy to remember, like the first of the month or when you receive your power bill in the mail. Make sure you use the filter type and size recommended by the manufacturer for optimal efficiency. While you’re at it, dust your ceiling fan blades, too!
Have your HVAC system serviced at least annually. Schedule a maintenance check on your unit at least once a year. A trained technician will check the coolant level, drain line, and overall system to make sure everything is operating at peak efficiency. If you live in a manufactured home, it’s especially important to check the ductwork to ensure it has not separated at the seams, resulting in a loss of cool air inside and higher electricity bills. Routine maintenance will head off potential problems, extending the life of your unit and promoting efficient operation for reduced power bills. Tip: Prune back shrubs that may block airflow to your air conditioner compressor.
These simple tips will help to cool down your power bill while you stay cool!
You’ve heard the saying, “A penny saved is a penny earned,” but why, how, and where should you be saving?
Let’s begin with why you should be saving. While we hope that life goes smoothly and there are no unexpected emergencies, that’s just not realistic. It is important to begin saving so you will be prepared for emergencies that arise, things like when the dryer stops working or your car needs repairs or new tires. This can also be an account to help prepare for a planned vacation or a large, expected expense. Preparation is key!
Save regularly toward your goals – it will add up quickly! Photo source: UF/IFAS Extension
That leads us to the next pieces – how and where do you save? This all begins with taking the steps to open a savings account. These days, opening an account can be done from nearly anywhere. You might visit a financial institution’s local branch, make a phone call, or even go online. You will need to provide a few pieces of personal information for verification and often you are required to deposit a sum of money to activate the account. Once your account is open, you can decide how to add money into it. Perhaps you deposit a certain amount from a regular paycheck or funding source, maybe you would prefer to transfer funds from other accounts, or you can deposit cash or checks periodically.
One thing about a savings account is the money is typically not as accessible as money in a checking account. This is all by design – the funds you allot to your savings account should be left alone and not used frivolously. An advantage to a savings account is the interest earned on your money while you aren’t doing anything with it. It won’t be much in the beginning, but, over time, interest earned could be a bit of a boost to your savings, helping you reach your goals more quickly.
To reach goals, you need to plan them out – be SMART. SMART goals are Specific, Measurable, Attainable, Relevant, and Timed. Decide what you will be saving for and be specific. Will this account be for emergencies, vacation, or a vehicle? Your savings goal should also be measured in some way so you can track your progress. Ensure your savings goal will be attainable, set yourself up for success, and be realistic with the amount of money you are setting aside. Your savings goal also should be something you are excited to work towards to make it relevant to you. Lastly, give yourself a time frame for reaching your savings goal. Will this take a month, one year, five years? Whatever you decide, stick to your time frame. Being able to identify your goals will aid in your savings success.
Tired of renting and thinking about buying a house? Not sure where to start? Let’s talk about some of the first steps in the path to homeownership.
Many people don’t realize that making the decision to buy a home and the process to buy one isn’t a one-size-fits-all step. There are many emotions and considerations that go into it. Here are some of the first questions to consider.
Do you have a budget or spending plan that you can live on?
Photo Credit: UF/IFAS Photo by Tyler Jones
Having a spending plan or budget that you can live on means that you’ve reviewed your income and expenses and either have a balanced budget or one with money left over. You may adjust that budget each month as expenses and/or income change but you don’t end the month in the negative. If you’re just getting started, try checking out our Money Management Calendar. It will take you through the six steps of building a spending plan and serve as a tool to help track your money each month. Knowing your financial situation before you begin the process to buy a home is important, as there are out-of-pocket costs that you’ll encounter when buying a home such as appraisal fees and closing costs, in addition to costs associated with homeownership, like maintenance, repairs, and insurance.
How does your credit report and credit score look?
Lenders use your credit score to help determine whether or not to approve you for a mortgage loan and, if approved, at what interest rate. The higher your credit score, typically, the lower your interest rate and the less you’ll pay for your home. Different loan programs may also have a minimum credit score requirement you’ll have to meet. Start by checking your credit report at the three different credit reporting agencies: Experian, Equifax, and TransUnion. Look for any errors or mistakes that could negatively impact your score. The three national credit reporting agencies permanently extended a program allowing individuals to check their credit report for FREE once a week at each agency. Visit AnnualCreditReport.com access the free copies of your credit reports. Improving your credit score can take time so starting early is helpful.
How much debt do you have?
Photo Credit: UF/IFAS Photo by Thomas Wright
Debt is another factor that lenders consider when you apply for a mortgage loan. Having too much debt can cause you to be turned down for a mortgage loan. The amount of debt you have can also significantly impact how much a lender is willing to lend you toward a home purchase. You can calculate your debt-to-income (DTI) ratio by dividing your total monthly debt payments by your total gross monthly income and multiplying it by 100 to convert it to a percentage. For total monthly debt payments, you should include any loans, credit card payments, child support, alimony, medical payments, and similar items. Do not include things like groceries, utilities, etc.
Each lender and loan program will have a different maximum limit, but many are in the range of 35-41% of your income going for debt repayment.
These are just a few of the initial questions to consider if you’re thinking about buying a home (and can be ones to think about even if you’re not!). Saving money, paying down debt, and repairing or raising your credit score all take time. Starting today can help you to be in a better position when you are ready to take the next step. If you want to learn more, UF/IFAS Extension offers classes for first-time homebuyers (returning buyers are welcome, too!) that go more in-depth for each of these questions and much more. Contact your local Extension office to find out about class schedules.
Resources:
My Florida Home Book: A Guide for First-Time Homebuyers in Florida, University of Florida/IFAS Extension
What is a scam? A scam is a deceitful attempt to gain something of value from you, such as your personal information or funds. Scammers often pose as a genuine business or acquaintance in order to trick people into trusting them. Scam attempts are made over the phone, via text, in person, or through email. Scams target individuals of all ages, backgrounds, and income levels. Though seniors have traditionally been targets of scams, everyone is vulnerable.
It is important to protect yourself by recognizing the signs of scams. These signs can help keep you, your loved ones, and your money safe.
Scammers often pretend to be a person/place you recognize, to win your trust.
Scammers often tell you that there is a problem, or you have won a prize.
Scammers often pressure you to take action immediately (time limited).
Scammers often request you to pay in a specific way (store gift card or cash apps).
Tips to Protect Yourself from Scams and Identity Theft:
Don’t share passwords or account numbers – especially your Social Security number.
Change your passwords frequently. Make them complex. Store all passwords in a safe location.
Do not open suspicious texts or click on links or attachments in an email. DELETE THEM!
Don’t ever pay ahead of time for a guaranteed prize. If they request payment for taxes or other fees before you can receive a prize or prize money, it is most likely a scam.
Keep your personal information safe. Lock your mailbox and shred your bills and other important documents before throwing them in the trash.
Sound too good to be true? If you are skeptical, and/or something doesn’t feel right, it probably is a scam.
Be skeptical of deals that are “good for only today.” If you are pressured to act immediately (or else!), it probably is a scam.
Do You Think You’ve Been the Victim of a Scam? Now What?
Protect yourself from scams by following a few simple guidelines for protecting your personal information online and over the phone. (Photo source: Thomas Wright)
Report the Scam. Reporting scams can help protect others. Agencies can utilize the information gathered to record patterns of behaviors that can lead to criminal charges.
Contact Your Local Law Enforcement. Consumers can report scams to their local law enforcement office, particularly if their money or identity has been stolen.
Contact Florida’s Attorney General. Florida citizens who have been victims of a scam can contact the Florida Attorney General’s Office of Citizen Services at 1-866-966-7226 or file a report on their website.
Reach out to the FBI.The FBI site offers some personal safety resources regarding scams and fraud.
For more information about keeping you and your family safe from scams, identity theft, and fraud, please contact the UF/IFAS Extension office in your county.
