Your Independent and Dependent Clauses Worksheet can be as simple or as complex as you would like it to be. There are a few things that you should know before you use the Worksheet that I will cover below.
Independent Clause – In most cases, these clauses will not appear on your credit report. However, in some instances the creditor may provide documentation of the number of months the debt was due or the specific date that the loan is being paid. If this information does not appear on your credit report, you may want to consider including this information in your Worksheet.
Dependent Clause – A Dependent clause appears on your credit report as it appears on your loan contract. This indicates that you will provide the full monthly payment to the creditor on a date specified by the creditor. This may be because you have reached a limit on your income or because you cannot afford to continue paying the debt. The clause is found on the back of the loan agreement where it is written.
When you are preparing your Worksheet, you may choose to write the Dependent Clause with the full monthly payment. If you do not include the Dependent Clause, you may want to add this information in later as you review your documents.
Independent Clause – It will appear on your credit report as it appears on your debt. Creditors also have the option of contacting your creditors to verify the monthly payment amount and the date you were due to make the payment.
You may want to include the Dependent Clause in your Worksheet so that you will not be surprised by the creditor’s response. For example, if you were not able to make the monthly payment due to an emergency, a check may have been sent to you to cover the debt.
If you choose to include the Dependent Clause in your Worksheet, do not forget to note it in the “Independents” column. You should also note the date the contract was signed or the date that the lender was notified of the situation. Include this date in the third column of your Worksheet.
This will allow you to use your Independent and Dependent Clauses Worksheet when you are reviewing your credit report. The creditors are more likely to work with the borrower who has made every attempt to repay the debt as scheduled.