Dispute Credit Report -
Avoid this Common Mistake
by Matt Douglas

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.

It is surely tempting to tell your side of the story by way of the "consumer statement." It
appears as your opportunity to explain why you have negative items on your credit report.
There probably is a good reason why you were late on that payment. Perhaps you were sick
or got laid off from your job.

However, do not be misled by the "opportunity" to add a consumer statement to your credit
 report.

Do not mistake the 100-word statement for good faith on the part of the credit bureaus. As
 you will see, such a statement is usually used against your best interests.

Here is a common consumer statement: "The late payments you see on my credit file were
 not my fault. My employer fired me due to no fault of my own. I quickly found a new job and
 now pay my bills on time every single month."

Losing her job due to no fault of her own seems like a rotten reason to give her bad credit.

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.

Attaching a 100-word statement is really bad for three additional reasons: (1) Such a
 statement confirms that Yes - you really were late on those payments. (2) The credit
 bureaus will ignore any future disputes you mail because you already admitted fault. (3)
 Should you apply for new credit in the future; every creditor will see your candid admission
 that you are not able to pay your bills during times of emergency - and therefore a bad credit
 risk.

As you can see, attaching a 100-word written statement to your credit report could possibly
 be the worst step you can take. In fact, it is only an option because it was part of the original
 Fair Credit Reporting Act enacted in the 1970's. Thirty years ago bankers actually manually
 reviewed credit applications and read those statements personally.

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.

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