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Get the full picture of what you owe, to whom, and at what rate — the first real step of any payoff plan.
You can't build an accurate payoff plan from memory — balances, minimum payments, and interest rates need to come from your actual accounts and credit report. This lesson is about pulling that data together in one place before Module 2.
US law entitles you to a free credit report from each of the three bureaus — Equifax, Experian, and TransUnion — through AnnualCreditReport.com, the only site authorized by federal law for this. Reports currently remain available for free on a weekly basis. Pulling your report does not hurt your credit score — that's a "soft" inquiry.
| Item | Why It Matters |
|---|---|
| Every open account | Cards, loans, and lines of credit — with current balance and credit limit |
| Payment history | Any accounts marked late, and how late (30/60/90+ days) |
| Accounts in collections | Need special attention since they can carry different negotiation options than a live account |
| Hard inquiries | Recent applications for new credit, which briefly affect your score |
| Errors | An account that isn't yours, a wrong balance, or a late payment you actually made on time — each bureau has a formal dispute process, and errors are common enough to check carefully |
Your credit report tells you what exists — but for a payoff plan you also need the interest rate (which reports don't always show) and minimum payment for each account. Pull those from your card/loan statements or online account, and note down four things for every debt you owe: the account name, current balance, APR, and minimum payment.
This list — balance, rate, minimum payment, for every debt you owe — is exactly what the next module's snowball and avalanche strategies are built on. Once it exists, choosing and running a payoff method takes minutes, not hours.
Deion pulled his three credit reports and found one account he didn't recognize — a small collections account from a gym membership he'd cancelled years ago but never fully closed out. He disputed it while building the rest of his inventory from his actual statements.
| Debt | Balance | APR | Minimum Payment |
|---|---|---|---|
| Credit Card A | $2,800 | 23% | $70 |
| Credit Card B | $1,200 | 19% | $35 |
| Auto Loan | $9,500 | 7% | $260 |
| Disputed Collections Account | $340 (under dispute) | — | Excluded until resolved |
By pulling the report first, Deion caught an error that would have otherwise sat on his credit history unnoticed, and built a clean, accurate inventory to work from — without it, he'd have started his payoff plan with wrong numbers and a phantom debt included.
Key Takeaway: Pull your free credit reports from all three bureaus via AnnualCreditReport.com, check them for errors and dispute anything wrong, then note down the balance, APR, and minimum payment for every debt you owe. This accurate inventory is the foundation the next module's payoff strategies run on.
No — pulling your own report is a "soft" inquiry and has no effect on your credit score, unlike a "hard" inquiry triggered by applying for new credit.
File a formal dispute with the relevant bureau immediately, as Deion did in the example above — it could be a simple reporting error, or in rarer cases a sign of identity theft worth investigating further.
Credit reports are built to show payment history and balances for lenders' risk assessment, not detailed rate terms — that's why you need to pull APRs separately from your actual statements or online account.
Bureaus are generally required to investigate and respond within 30 days of receiving a dispute, though it can sometimes take longer for more complex cases.
It's usually best to exclude it until the dispute resolves, as Deion did — including a potentially incorrect balance can distort your payoff strategy and prioritization.
Updating it every month or two, or after any major change like a new loan or a rate increase, keeps your payoff plan accurate rather than working off stale numbers.
Disclaimer: This article is for general educational purposes only and does not constitute personalized financial, investment, tax, or legal advice. Figures, rates, and rules mentioned may change over time — verify current details with an official source or a qualified professional before making financial decisions.
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