The Wrong Way to Dispute Your Credit Report
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by: MattDouglas
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Word Count: 529
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.
It may be difficult to resist the urge to proclaim your innocence by way of a consumer statement. You may feel the need to explain that the bad credit simply was not your fault or beyond your control.
However, do not be misled by the "opportunity" to add a consumer statement to your credit report.
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.
Credit bureaus really could care less that your inability to pay your bills was due to no fault of your own. They see things in black and white. You either paid your bills on time (according to the creditor) or you did not pay your bills on time.
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.
Nowadays applications for new credit such as a credit card or car loan are based upon your score - not your statement. Therefore, the statement is only a weapon that the bureaus can use to ignore your credit report disputes.
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 quick and effective credit repair? Discover the secrets to deleting charge offs, judgments, collections, late payments, and improving your credit score. Plus, get a free credit dispute letter you can use to erase negative items.
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