The Deadly 100-Word Credit Report Statement

By Matt Douglas

If you have ever tried to dispute items on your credit report, you may have received a response from the credit bureaus stating they performed their "investigation." The bureaus may also tell you that they "verified" whatever item you disputed. This means that negative item will remain on your credit report.

In paragraph number two of a credit bureau dispute response the bureaus encourage you to add a 100-word consumer statement to your report. This is where many people add a short essay on why they deserve credit.

People often mistakenly use the 100-word statement to explain some situation that led to their bad credit. For example, they may want to justify late payments with the loss of a job or a medical condition.

Do not fall into the trap of adding a consumer statement to your credit. It is almost never a good thing.

It may look like the credit bureaus are doing you a favor by adding your consumer statement. However, it is really just another technique the credit bureaus use against you.

People often send in statements like this: "I fell behind on my credit card bills, but I have since caught up. My boss laid me off from my job of 20 years. Even though I could not pay my bills, it was only a temporary situation and now I am current."

It may seem unreasonable to punish somebody for losing her job. Especially if she caught up on all her bills.

However, the credit bureaus and creditors read such a consumer statement entirely different. They don't see a good person who went through some brief and unexpected hard times.

Her inability to make payments is seen as a sign of weakness and/or irresponsibility. They believe that she should have emergency money to pay bills during times of emergency.

The 100-word statement also has additional hidden dangers. For instance, adding such a statement confirms your guilt. It is direct proof that you were late on those payments. Moreover, you put yourself on perilous footing should you decide to hire a credit correction law firm in the future. The credit bureaus will ignore any future disputes on your behalf because you have already admitted guilt. There is no reason for them to conduct an investigation. Finally, you have put yourself into a category of consumers that potential creditors avoid. Any potential creditor may avoid giving you credit out of fear that you will likewise default on payment should you run into a rough financial patch in the future.

If a creditor does not read your statement, then nobody will. Most applications are reviewed digitally and so the 100-word statement serves no purpose other than a weapon credit bureaus use against you.

In sum, ignore the temptation to tell your side of the story. Resist the urge to "justify" your being late on that credit card bill or car payment. Steer clear of adding the deadly 100-word consumer statement.

About the Author:

Looking for fast and effective credit repair? Discover the secrets to deleting charge offs, judgments, collections, late payments, and raising your credit score. Plus, get a free credit dispute letter you can use to delete bad credit.