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.
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
Creating a holiday spending plan and sticking to it can help decrease stress and reduce debt in the new year. (Photo source: Samantha Kennedy)
The holidays are once again upon us. For many people, it can be a time of stress, frustration, and financial uncertainty as they drive themselves past their limits to try to make everyone happy and everything perfect.
One of the biggest seasonal stressors is spending too much on gifts, food, and home décor. While it may seem worth it at the time, buyer’s remorse may quickly set in after the New Year when the bills start rolling in.
The most important thing that can be done to help curb holiday spending is to set a budget.
Maybe going all out for Christmas is a family tradition. Great! If it is, however, the best thing to do is to make a plan to save the money over the preceding months so it will be available to spend when the time comes. Spending money that is not in the budget or overusing credit are surefire ways to increase debt and cause strife later.
The holidays should be about family, friends, and the joy of giving. It should not be a competition to see who can have the biggest, brightest, most fabulous home, gifts, etc.
Retailers and the media work hard to send the message to consumers that the latest this or the greatest that are needed to get the full holiday experience. However, it is important to resist their messaging and stick to the determined budget.
Including children in any discussions about holiday spending is important. Let them know that there is only a certain amount of money available to spend on gifts and help them understand the importance of sticking to the budget. While parents may feel pressured to get everything on their child’s wish list, focusing on a few special items will help families stay on financial track.
Cash and debit cards are the best ways to pay. If the money is coming directly out of pocket, consumers are more likely to be more cautious before spending. Use credit cards wisely. Choosing to purchase with credit in order to receive airline miles or rewards points is fine, but keep close track of all purchases and only charge as much as can comfortably be paid off in its entirety when the bill comes due. Avoid the pitfall of still paying off this year’s holiday spending next Christmas.
Some of the most meaningful and treasured gifts are those that come from the heart. Custom, handmade gifts really show a person they are valued.
One large gift for an entire family that everyone can enjoy can also save money over buying something for each individual. Many people also appreciate a donation in their name to a charity or cause that is near and dear to their hearts.
The holidays do not need to be stressful or break the bank. By adopting a few smart spending practices, you can enjoy the holidays without the added worry.
For more information on holiday spending and strategies for creating a smart holiday spending plan, please call Samantha Kennedy at (850) 926-3931.
Extension classes are open to everyone regardless of race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations.
In the early 70’s Gary Iskowitz, was doing graduate work as well as teaching tax law while working for the Internal Revenue Service (IRS) agency. Mr. Iskowitz saw a growing problem with questionable tax preparers who were scamming low-income people in his area. He did not like what he saw! Consequently, he proposed that he train a minimal number (10) of likeminded student volunteers to go into the community to prepare free tax returns for underserved residents. People lined up around the block waiting for them.
The following year, almost 100 students were recruited and trained to prepare free tax returns for low-income residents. The rest, they say, is history!
This college-volunteer effort significantly strengthened the Volunteer Income Tax Assistance (VITA) program. Now, more than 40 years later, VITA is still going strong.
VITA is still designed to promote and support free tax preparation service for the underserved, in both urban and non-urban locations. Service is targeted to low-to-moderate income individuals, persons with disabilities, the elderly, and limited English speaking.
Why? Just as in Gary Iskowitz’ time, this program is an effort to provide both a valuable community service and a powerful learning experience for the participants. Not only does a tax payer get their taxes done for free, the local community benefits from the monies spent by the tax payer. Plus, the IRS is pleased because citizens are in compliance with federal law.
Volunteers come from the local communities they serve.
If you plan to take advantage of any of the VITA programs this year, be sure to bring the proper documentation. A return cannot be prepared without the appropriate certification.
And know that in an effort to stop fraudulent tax return payments, beginning in 2017, if you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) on your tax return, the IRS must hold your refund until at least February 15 — even the portion not associated with EITC or ACTC.
What to Bring to Your Local VITA Site:
Proof of identification (photo ID)
Social Security cards for you, your spouse and dependents on the tax return or a Social Security number verification letter issued by the Social Security Administration
An Individual Taxpayer Identification Number (ITIN) assignment letter may be substituted for you, your spouse and your dependents if you do not have a Social Security number
Proof of foreign status, if applying for an ITIN
Birth dates for you, your spouse and dependents on the tax return
Wage and earning statements (Form W-2, W-2G, 1099-R,1099-Misc) from all employers
Interest and dividend statements from banks (Forms 1099)
A copy of last year’s federal and state returns, if available
Proof of bank account routing and account numbers for direct deposit such as a blank check
To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the required forms
Total paid for daycare provider and the daycare provider’s tax identifying number such as their Social Security number or business Employer Identification Number
Forms 1095-A, B or C, Affordable Health Care Statements
Start 2017 off right! Being well-organized and getting your information together can save you a lot of time and maybe even money!
It is that time of year when we think about giving special gifts to the people in our lives that mean the most to us. Your list might include teachers, neighbors, friends and co-workers. Gifts don’t have to be expensive, it is the thought behind the gesture that means the most to your friends and family. Whoever is on your list this year, think about using your kitchen as grand central for gift making. Gifts of food are heart felt and send a message that you spent time making something special that looks good and tastes yummy. These gifts say thank you in a thoughtful way. Don’t forget to include your kids in the process of cooking and assembling gifts to teach them something about budgeting and enjoying the simple pleasure of gift giving.
The way the gift is presented can be just as important as the food itself. Try to pair up containers with the food gift that will be used after the food is gone. This can be a gift that keeps on giving. Examples are a decorative plate filled with cookies, pie plate filled with your favorite pie or a trifle bowl filled with goodies. You get the idea. Another thought is to put together items that say “sit and take a break” like a loaf of quick bread paired with a pound of coffee, homemade salsa with chips and a favorite beverage. The main goal is to show that you put thought in the gift and spent time preparing the presentation.
With everyone watching their budgets this year, plan ahead to get the creative juices working by purchasing ingredients on sale and found locally. Local products in December include pecans, sweet potatoes, honey, peanuts, persimmons, satsumas and jams and jellies sold at local farmers markets. So get going and unleash your creativity, and give a few gifts from your kitchen and your heart. Have fun making these gifts, and remember to enjoy the process.
One of my favorite festive cookie is the Chocolate Crinkle. The crackle on top with the chocolate and white sugar says it is holiday time. These cookies make a good food gift as they stay firm and will last up to a week. They also freeze well if you need to make ahead of time. Package the gift by placing on a nice festive plate and wrap with clear wrap and decorate with ribbon.
Chocolate Crinkle Cookie
½ cup of shortening
1 2/3 cup sugar
2 tsp vanilla
2 eggs
Two 1 ounce squares of unsweetened chocolate (melted)
2 cups sifted all-purpose flour
2 tsp baking powder
½ tsp salt
1/3 cup of milk
½ cup chopped walnuts or pecans (optional)
Cream together the shortening, sugar and vanilla. Beat in the two eggs then add the melted chocolate. In another bowl, sift together the flour, baking powder and salt. Add flour mixture slowly to creamed mixture alternating with the milk until thoroughly blended. Stir in walnuts. Chill for 3 hours. Form in 1 – inch balls and roll in confectioners’ sugar. Place on greased cookie sheet 2 to 3 inches apart. Bake in moderate oven at 350 degrees for 15 minutes. Cool slightly then remove from pan. Makes 48.
They are now ready to put in a container and give to friends. This cookie freezes well.
Prepare this nut bread then decorate with wrapping and ribbon. You might include the loaf pan as part of the gift. Include a brick of cream cheese along with a decorative butter knife for a complete package.
Cranberry Nut Bread
Ingredients
2 cups all-purpose flour
1 cup sugar
1 1/2 teaspoons baking powder
¾ teaspoon salt
1/2 teaspoon baking soda
3/4 cup orange juice
1 tablespoon grated orange peel
2 tablespoons shortening
1 egg, well beaten
1 tsp vanilla flavoring
1 1/2 cups Fresh Cranberries, coarsely chopped
1/2 cup chopped nuts (walnuts or pecans)
Directions
Preheat oven to 350 degrees. Grease a 9 x 5-inch loaf pan. Mix together flour, sugar, baking powder, salt and baking soda in a medium mixing bowl. Stir in orange juice, orange peel, shortening and egg and vanilla. Mix until well blended. Stir in cranberries and nuts. Spread evenly in loaf pan. Bake for 55 minutes or until a toothpick inserted in the center comes out clean. Cool on a rack for 15 minutes. Remove from pan; cool completely. Makes 1 loaf (16 slices). Bake loaf in decorative pan as part of the gift. Make sure you cool after cooking then replace in pan and wrap as part of the gift.
The Real Sweet Potato Pie
Use local sweet potatoes to promote locally grown produce. After baking, cool then give as a gift in a nice pie plate. Wrap, refrigerate with instructions on reheating for serving. For added effect, bundle with whipped cream and pie knife.
Pre Preparation
Prepare your sweet potatoes for the pie mix. Select 6 – 7 large sweet potatoes and cut in half or quarters. Boil potatoes slowly for about 30 minutes. Let cool. Peel potatoes after they cool. The peel should come off very easy. Measure six cups of sweet potato in a mixing bowl. Use a stand mixer to beat the sweet potatoes and do not scrape off any mixture from beaters. This will contain the stringy part and you do not want it in your pie. Discard the strings.
Ingredients
6 cups cooked mashed sweet potatoes
1 cup evaporated milk
½ cup butter
2 tsp vanilla flavoring
2 tsp nutmeg
1 tsp butter flavoring
4 eggs
1 cup sugar
Mix all ingredients in a stand mixer until well blended. The mixture should be smooth and free of lumps. The mixture will keep in the refrigerator up to a week and may be frozen for future use. Be sure to label with date and amount before placing in freezer.
For the Pie
Place mixture in unbaked pie shell and smooth to the edges. You will need about 2 ½ cups for each 9 inch deep dish pie shell. Mini tart shells may also be used for individual pies. This recipe makes about 3 pies or 12 individual mini pie tarts. Cook at 350 degrees until puffed and browned slightly on top. About 40 minutes.
Visit your local farmers market to purchase local nuts, honey, produce and jams and jellies. Be sure to look for locally grown and support our area growers. For additional information about local produce visit: http://wfrec.ifas.ufl.edu/panhandle-produce-pointers/
