May

May Session 1: Check My Credit Reports
You’re entitled by federal law to free copies of your credit files from the three major bureaus every year, so there’s no reason not to take advantage of this service. Even if you think you’re aware of everything on your reports, it’s wise to check them because, according to the Federal Trade Commission, 79% of all credit reports contain errors. Many of these errors are harmless, but some could cost you a lot of money in the form of higher interest rates or even cause you to be denied credit. Once you’ve received your reports, check them meticulously for any mistakes and dispute any incorrect information.

Tip: The dispute process can take several months to finish, so if you’ve got a major financial transaction coming up—like buying a home or a car—plan to review your reports well in advance. You may have heard the rumor that viewing your reports lowers your scores, but this is patently false.

May Session 2: Plan to Reduce My Debts
Don’t shred or delete those credit reports just yet. They’re an excellent resource for compiling all your outstanding debts as a step toward eliminating your financial liabilities. Whether you use the snowball or avalanche method, freeing yourself from negative investments in your future can be one of the greatest financial gifts you’ll ever give yourself.

Tip: Be aware that not all debts show up on your credit reports. Some debts, such as past-due utility bills or certain medical obligations, may not appear. As part of eliminating your debts, make a note of any collections letters, emails, or phone calls you receive for outstanding obligations. Engaging with this information can be painful or frustrating, but the relief you’ll feel when it’s all handled will be worth it.