Most people check their credit reports for errors so they can correct them and get better credit scores.  Sometimes, when the corrections aren’t all the consumer hoped for, they add a Consumer Statement to their credit file.

The Fair Credit Reporting Act (FCRA) states “…that the consumer has the right to add a statement to the consumer’s file disputing the accuracy or completement of the information;”.  The credit bureaus will gladly insert this and it does indeed show up on your credit report.

However, it generally does NOT help your credit rating and has absolutely nothing to do with your credit scores.  It may, in fact, signal that you are resigned to accept the reporting as it is and will go no further in protesting it other than the few lines in the Consumer Statement.  Now, sometimes a lender will actually look over the entire credit report, see your words of explanation and pursue a loan approval anyway.  But most of the time they just check your scores for minimum qualification and ignore the rest of the credit report.

BOTTOM LINE
Don’t bother with a Consumer Statement on your credit report.  If you know something in your credit file is not correct, keep trying to get it corrected.  You can contact the original company for documentation, request validation from  collection agencies related to the account, and check your own records for something to back up your claim. 

Be sure to send in some new documents or reasons when you contact the credit bureaus so that they do not determine that your dispute is “frivolous”, which gives them a reason to stop investigating the matter and leave it as it is. Yes, this is really written into the FCRA, conveniently providing an out for the credit reporting agencies. 

Knowing your consumer rights and how to use them to your advantage is the first step to getting better credit scores and more financial options for your future.  We provide detailed strategies on how to improve your credit rating with an in-depth Credit Analysis for only $100 - get yours today.