Credit Bureau Consumer Explanations Never Worth It


Credit Bureau Consumer Explanations Never Worth It

Your right to furnish a credit bureau with a 100 word explanation of an account in dispute may seem tempting.  When you take a closer look at the pros and cons of doing this you will conclude that it is just not worth it.  Lenders never really look at these statements anyway.  I would give the pros of doing this equal time if I could think of any pros.  Credit Bureau Consumer Explanations Never worth it.

New Mortgage Guidelines Reference Credit Bureau Consumer Explanations

Credit Bureau Consumer Explanations Never Worth It

Absolute_Mortgage (Photo credit: kathleenleavitt)When you add a 100 word explanation to your credit bureau report in an attempt to explain a negative entry you are asking for trouble. Lenders rarely bother to look at these or give them any consideration if you are on otherwise shaky ground.

Under the new mortgage guidelines an account in dispute will disqualify you.  This is not to say you can’t get a mortgage if your account shows credit bureau consumer explanations.  If you have credit bureau consumer explanations, no matter how high your credit score your mortgage application will have to go to a manual underwrite.  This could result in a higher interest rate as well as slowing down your application.

Credit Bureau Consumer Explanations can Outlive the Dispute

These statements sometimes outlive the disputed debt complained about.  This unnecessarily calls attention to the fact that you once had a problem.  Credit bureau consumer explanations are supposed to be removed when the consumer requests removal.  The credit reporting agencies are sometimes slow to respond without numerous repeated requests.

Exercising the right consumers have to dispute negatives they see as unfair is understandably tempting.  No one likes that helpless feeling of being at the mercy of someone’s one sided complaint that causes you real financial problems.  The burden of proof shouldn’t be on you to prove the accuser wrong.  But, alas, the burden of proof is in the wrong place under this system.  I’m sure this provision was placed in the law with good intentions.  Like so many well intentioned laws the effect is to cause a false sense of security on the consumer.  Filing credit bureau consumer explanations may make you think you have done something to fight back…but experience has taught again and again that this is not in your best interests.

Credit Bureau Consumer Explanations Never Worth It
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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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