EVERYTHING YOU HAVE A RIGHT TO DO, IS NOT THE RIGHT THING TO DO
In the early 1970s, the Fair Credit Reporting Act first gave Americans the right to include 100 word statements of explanation on their credit reports. Back then, life was very different. Credit reports were actually reviewed by human eyes. That is seldom, if ever, still the case.
The 100 word statement, once helpful, now harms the consumer. Here’s why:
- Since the credit score is the usual qualifying determinant, such personal statements are never read by the potential creditor.
- The included statement tends to confirm the credit report, hindering any future credit repair effort. Let’s say you’ve explained how an illness or layoff caused your late payments. You have now confirmed the late payments, and the fact that you didn’t maintain contingency funds. Therefore, you’re a bad credit risk.
Most consumer advocates, including RMCN Credit Services, recommend that the first item to be disputed is the 100 word statement, if one was ever inserted.
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