The One Thing You Should Consider Adding on Your Credit Report if You’re Struggling Financially

A person’s credit report is one of the most important things they need to keep track of if they want to properly manage their finances. It serves as a snapshot of an individual’s financial history.

And since credit providers and lenders often look into this report when considering a person’s credit card or loan application, its contents could spell the difference whether or not their request would be approved or denied.

However, there’s something else people can add to this file that can actually add more context about their current financial situation, especially if they’re facing hard times.

Important Addition

Wavebreakmedia/Deposit Photos: Don’t forget to contact your credit and utilities providers to negotiate with them on alternative payment plans for your unpaid bills

This recommended addition is the consumer statement.

Considering the widespread effects of the coronavirus pandemic from job loss to the closing of businesses, a lot of people would find adding the said note to their credit report to explain why they’ve been falling behind on payments.

A consumer statement can clarify that a person has not become an unreliable borrower should they choose to apply for a loan or a new credit card. It would also let lenders know that the applicant’s current troubles are caused by something that’s beyond their control.

How to Add A Note

peshkova/Deposit Photos: You can request access to your credit reports online

To add a note to one’s credit report, they would need to access their report first. Luckily, the coronavirus crisis has led the major credit-reporting bureaus to give people free access to their reports on a weekly basis compared to the usual once a year offer.

Begin by going to the Annual Credit Report website and filling out a form there. One can select to view one or all three: TransUnion, Experian, and Equifax.

People are then advised to save the PDF files they will be given access to serve as a reference in the future. Don’t forget to check each to see whether there are any errors in them.

Afterward, they should get in touch with the credit-reporting bureaus to add a consumer statement. Visit their official websites for more specific instructions

When to Remove the Statement

fizkes/Deposit Photos: One can remove a consumer statement if they happen to land a new job and start earning again

The statement shouldn’t remain in a person’s report forever though. Once one’s situation has started improving, they should consider having the note removed.

Skipping this step might lead lenders to be notified that an applicant has had payment issues before. The process of removing the note is also similar to the one requesting for its addition.