Often there are valid reasons why you haven’t finished paying a bill or were late on your payments. Perhaps you were in the process of moving and forgot a final payment on your utilities. Or, maybe, a business refused to perform full service as promised or only partially completed a job and then later reported you to your credit reporting agency for non-payment.
In such a case, you’ll want to contact all three major credit reporting bureaus and ask to attach a note to your credit report explaining the situation. This note will give other future creditors a chance to make a more informed decision about your credit future.
Additionally, if charges were made on your credit card fraudulently or you’ve been a victim of identity theft, but unable to resolve the situation , you can leave a note of explanation on your credit report to explain the event. When given a reasonable explanation, most creditors are willing to bend the rules in your favor.
Leaving a note on your credit report to explain late payments and other credit mishaps also protects you in the event a future employer requests a credit report. Your note provides persuasive evidence in your favor.
It’s always wise to check your credit report at least once every few months to check for erroneous charges; fraudulent activity and mistakes. If you spot a suspicious event, you’ll want to alert your credit reporting agency immediately. In the case of fraud you would have a fraud alert placed on your report, which will protect you for up to 90 days.
In the case of mistakes, contact your credit reporting agency and provide supporting documentation to dispute the charges.