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| The Deadly 100-Word Credit Report Statement |
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| Written by Matt Douglas |
| Thursday, 24 July 2008 19:58 |
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Credit bureaus respond to consumer credit disputes via mail. They will either delete or verify the information. If the item is verified, it means the bureau is keeping that information on your credit file. 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. However, do not be misled by the "opportunity" to add a consumer statement to your credit report. This "concession" by the credit bureaus is not a concession at all. In fact, the 100-word statement will only make matters worse for 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. Writing a 100-word statement can damage your credit for three more reasons. First, such a statement only cements the fact that you paid your bill late. Second, the credit bureaus already have confirmation that the late payments are accurate. Thus, should you dispute the items in the future, the credit bureaus will ignore that dispute or deem it "frivolous." Third, any future creditor will expect you not to pay them should you run into another financial emergency. As you can see, there is no benefit to the consumer when they attach the consumer statement. In fact, the purpose of the statement is so old and out-dated that it probably should be simply abolished. It was part of the original Fair Credit Reporting Act enacted by Congress in the 1970's. The statement has no purpose nowadays since most credit applications are reviewed electronically. 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. Briefly, the 100-word statement is dangerous to your credit file. It serves no good purpose for the consumer whatsoever. About the Author: Looking for quick and effective credit repair? Discover the secrets to deleting charge offs, judgments, repossessions, late payments, and raising your credit score. Plus, get a free credit dispute letter you can use to erase bad credit. Kindly provided by MoneyHunter.org You are welcome to use this article on your own website, if you include the link just before this text. |
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