Welcome to this week’s edition of Tuesday Top 5, our weekly tips post to help you manage your money in five easy steps.

Today we walk you through the all-important credit report, and what to do if you find inaccurate information on it. Your credit report plays a major role in determining your credit score, so it’s essential to verify that your credit record is in ship-shape.

1. You are entitled to three free credit reports per year. You can check your reports every four months and basically monitor your credit year-round – all at no charge to you. Many financial advisers recommend that you check your credit report once a year to make sure that the information is correct and to protect your identify. Visit AnnualCreditReport.com to get started.
2. Know what is not on your credit report. While the report will show how you have managed credit over time, it isn’t a complete record of your financial history. For example, it does not include your income, checking and savings account balances, or purchases made with cash.  Transactions with payday lenders and rent-to-own stores, for example, are not filed in your credit report. Other personal information like your race, religion, medical history, or driving record are also excluded.
3. Bust scammy debt collectors by checking your report for old debts. There’s been a recent rash of scammers sending bogus debt collection letters to unsuspecting consumers, trying to collect on so-called debt from years past. If you receive such a letter but don’t remember doing business with the company named, check your report. If it’s not there, it’s not legit.
4. Clean up your credit report. As you read through your report, make a note of any incorrect or negative information that is past the statue of limitations, such as lawsuits and tax liens more than seven years old, bankruptcies more than ten years old, and credit inquiries more than two years old. Complete the form provided by the credit bureau that furnished your report, and give a detailed explanation for each incorrect or out-of-date item. The bureau is required to investigate the disputed charges within 30 days, and if the creditor cannot verify the debt, the bureau must remove the information from your report.
5. Why it’s important. Obviously if you’re about to apply for a mortgage or car loan, you know why a clean credit report is essential to getting the best rate. But what you may not know is that more and more employers are running credit checks on potential employees before they make their job offer. Checking your report every few months will also make you aware of any identity theft in the works.

With free credit reports at your disposal, there’s no reason not to stay on top of your financial record.