Credit Repair Program -- Step 14.  Add Consumer Statement to Credit Report

If all of your efforts put forth in Steps 3 through 13 have not netted you the results you were hoping for, meaning there is still negative information on your credit report, you have the right under the Fair Credit Reporting Act to have a consumer statement added to your credit report.

The purpose of a consumer statement is to try to explain why you fell behind on your bills or refused to pay a bill you owed, etc.  Whether your reason is that you suddenly lost your job or the creditor didn't perform services as agreed, the purpose of adding such a statement is damage control. 

Your consumer statement is supposed to explain why you believe your credit report is an inaccurate reflection of your true creditworthiness.  A sample consumer statement might read, "My credit report is not an accurate reflection of my payment history.  The Acme Credit Card account being reported on my credit report is not mine.  As anyone can see, this account was opened in 1999 when I was just 15 years old.  This account obviously belongs to someone else with the same name as me. I am being severely and unfairly damaged by the charge-off notation that appears with this account.  My credit rating would be excellent if it were not for this account being reported as part of my credit report." 

Your consumer statement is supposed to be sent to anyone who requests your credit report, but it has very limited impact at present, since most lenders (except mortgage lenders) don't look at credit reports anymore; they base their lending decisions entirely on a person's credit score.  Besides, a consumer statement isn't going to help you get a loan with a major lender even if they see it.  However, it might help you get housing or a job when you show it to a potential landlord or employer to try and overcome the negative information that appears in your credit report.

How Do I Add a Consumer Statement to My Credit Report?, and allow you to add a consumer statement online at their websites.  You can also request they do so by letter (links to sample letters below).

Once the statement is added to your credit report, the credit bureau is required under a provision in the FCRA to give your consumer statement to anyone who obtains a copy of your credit report in the future. 

You should be aware that some credit experts claim that a consumer statement will actually lower your credit score.   For this reason, it is better to add such a statement only if you've exhausted all other remedies. Try to get negative information removed from your credit report through negotiation, etc., using the information in this credit repair program before adding a consumer statement to your credit report.

This is the end of the 14-step program.

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