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Consumer Credit Statements on Credit Files
Aren't a Quick-Fix
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When you feel that a credit report notation needs to be explained, there is the possibility
of adding what is called a "consumer statement" to your credit file. While it is possible
to add such a statement, it may not have the positive influence one would think. There are
two main reasons for this.
First, a credit report has a specific role in lenders' decision making processes. They look
at credit reports for a factual account of payment history. Explanatory statements, since
they cannot change the facts of your credit report, may be viewed simply as excuses.
Your recent payment patterns are usually most important to creditors. Paying your bills on
time for just two years from the time of negative notations can make a great difference in
your credit worthiness.
Second, consumer statements can actually have negative ramifications for your credit. Such
statements are only removed from your credit report at your request or automatically after
seven years. Often, up-to-date accounts can end up marked with explanatory statements that
don't apply anymore. The statements then highlight past payment problems even though the
credit report shows no recent delinquencies. This may call attention to past situations
that no longer apply and may hurt the good payment history you have been cultivating so carefully.
If you do choose to add a consumer statement to your credit file, you can do so by
contacting the credit bureau directly and making your request. Just be vigilant about
taking the statement off when it no longer applies (for example, if you want to explain
an item that will cycle off your report in two years, make sure you remember to have the
statement removed in two years as well).
Remember, though; nothing outweighs a solid credit history. For helpful information on
rebuilding credit, you may visit our web site at
http://www.creditmatters.com/articles.asp?ch=3.
Copyright © 2000, CreditMatters.com
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