Should I add a Consumer Statement to my credit file?  The short answer is NO. 

A Consumer Statement is something that can be added to a person’s credit report, by them.  It is about the only thing a person can add to their own report.  Everything else on there comes from companies that pay the credit bureaus as a “subscriber”, allowing them to put their customers’ account information on the credit bureau reports, and it also comes from public records searches that the credit bureaus initiate themselves.

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 is NOT included in the credit scoring formula.  It has nothing to do with your credit scores.  It will not help your credit rating at all.  It may even stay on your credit report long after the item that the statement is about is gone from the report.

Most lenders check credit reports for minimum score qualifications, then they may look for items that their own company considers a “red flag” in the lending process.  Rarely do they actually look over the entire credit report, let alone see the words of explanation in the Consumer Statement. 

WHAT TO DO
Don’t bother with a Consumer Statement on your credit report.  As logical, reasonable people, we want to explain the valid circumstances for something that may be on our credit report.  The credit bureaus are not logical, reasonable people.  Remember, they make money whether your information is accurate or not, whether there were legitimate reasons that caused something, and whether or not you try to explain it.

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 paperwork to support 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. 

Learn how to positively impact your credit scores.  There are five parts to the FICO score.  Our Credit Check-Up provides our clients with a complete analysis of their current credit report and effective strategies they can use to help their credit scores grow.  Contact us today to get yours.

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