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Should You Add a 100-Word Statement to Your Credit Report?

December 14th, 2016 · No Comments · Credit Repair

by Kristy Welsh

(Last Updated On: August 17, 2017)

Should You Add a 100-Word Statement to Your Credit Report?By law, you are allowed to submit a 100-word statement about a disputed item on your credit report with any of the three major credit bureaus. But is it a good idea to incorporate this into your credit repair efforts? And, if so, what’s the right way to go about it?


You can tell your side of the story

If you know there is something inaccurate in your credit report, you want potential lenders to know it, too. The 100-word statement gives you an opportunity to put it on the record that you do not believe the negative listing to be true.

You can show lenders how much you care about your credit

If you go out of your way to submit a 100-word statement to a credit bureau, clearly better credit is something that’s important to you. Theoretically, this could look good to a potential lender, as it may suggest you’ll be just as conscientious about making timely payments the(i.e., practicing good credit behavior).

You can feel like you’ve exhausted every possibility

Having inaccurate information on your credit report is a pretty defeating feeling. Assuming you’ve taken all the steps you can to remove inaccurate information, submitting the 100-word statement is one more step you can take to set things right.


Your side of the story could make things worse

As explained by Experian, there are two types of statements you can submit to a credit bureau:

  • A general statement about your overall credit situation
  • A specific statement about a particular account

If you’re going to write a statement, avoid option 1. A general statement about your credit will stay on your report for 2 years. That’s not a good thing if the negative items dragging down your score fall off in the meantime. Your credit looks better, but you’re left with a statement drawing lenders’ attention to the fact that it didn’t used to be this good (i.e., you could be a worse credit risk than you look like).

Option 2 is better, but within the account-specific statement there are also two ways to go with it:

  • Statement of excuse
  • Statement of dispute

If you’re going to write an account-specific statement, avoid option 1. A statement of excuse looks like it sounds – like you’re making excuses, as in “I was late that month because [insert any excuse that comes to mind].” Instead, go with the statement of dispute. Experian recommends saying something like, “I disagree with the status of the account and how it is being reported by the lender.”

But even if you go with the statement of dispute, keep in mind that it could draw attention to something a lender wouldn’t have noticed. Or, to the other extreme, it may not be read at all.

The statement doesn’t affect your credit score

If someone looks at your credit report, they might read your statement. But if they never look past your credit score, the statement won’t make a bit of difference. Statements added to your credit reports are not included in the algorithms credit bureaus use to calculate your credit scores.

Bottom line, what’s more important than submitting a 100-word statement is doing everything you can to remove inaccurate listings from your credit reports. You can do it yourself and you can do it for nothing more than the price of postage. Learn more about DIY credit repair.