The In-effective Credit Dispute Method | Auto Finance

By MattDouglas
Total views: 1
Word Count: 444

Disputing negative credit items with the credit bureaus Equifax, Experian, and Transunion can often be a challenge. Many times the bureaus respond to a dispute with a letter indicating they verified the disputed item. Accordingly, you are stuck with the information being reported about you.

Credit bureaus always respond to disputes with a letter where they inform you that you have the right to attach a 100-word statement to your report. Often, people believe this is a good opportunity to explain away their negative information or argue their case.

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.

Be cautious about adding a consumer statement to your credit file.

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.

Let's assume that you were to attach a statement like this: "I was only late on my credit cards because I was laid off from work. Once I found another job I caught up on all my bills and have never been late since."

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

Credit bureaus interpret a late payment one way. They interpret it as an indication of a bad credit risk.

Credit bureaus interpret the situation as somebody who is irresponsible. They see her as a bad credit risk because she does not have enough savings to cover bills then things get tough.

The 100-word statement also has additional hidden dangers. For instance, adding such a statement confirms your guilt. It is direct proof that you were late on those payments. Moreover, you put yourself on perilous footing should you decide to hire a credit correction law firm in the future. The credit bureaus will ignore any future disputes on your behalf because you have already admitted guilt. There is no reason for them to conduct an investigation. Finally, you have put yourself into a category of consumers that potential creditors avoid. Any potential creditor may avoid giving you credit out of fear that you will likewise default on payment should you run into a rough financial patch in the future.

In today's digital world most applications are reviewed electronically. Thus, such a statement only serves as another way for the credit bureaus to ignore your credit report dispute.

To summarize, the 100-word statement is out dated and dangerous. Avoid the temptation to explain bad credit. Instead, use the formal channels to challenge misleading credit information such as dispute letters and creditor interventions.

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.

You are here Articles > Cars and Trucks > Auto Finance