Your right to explain in writing on credit reports
Your Right to Explain in Writing on Credit Reports
There are many things about the credit scoring system that are counter-intuitive. A consumer has a right to file a written statement of 100 words or less to explain anything he feels needs further explanation. Don’t do it.
Statements in Writing on Credit Reports don’t affect your Credit Score
Readers of my book know that I am not a big fan of utilizing your right to attach statements in writing on credit reports of 100 words or less. The reason people would want to make statements in writing on credit reports is natural. There may be very good reasons for the negatives. You may have been a victim of ID theft or medical emergency. These statements do not change your score and few creditors manually review or follow up on written statements.
Employment Review may be an exception
One reason you may elect to make statements in writing on credit reports is for a credit report that has to be submitted for employment. Statements in writing on credit reports submitted for employment are more likely to be read. If you do submit statements in writing on credit reports avoid emotion or blaming others. Proof read it carefully. Keep it very short. Make sure it goes to all 3 bureaus. Don’t forget to take it off when the problem is past. You don’t want to forget to take it off and later call attention to the fact that you once had problems. Word of warning…Taking the statement off is sometimes a process that is more complicated than it should be.
That statement could become a problem if you apply for a mortgage
Statements in writing on a credit report throw sand in the gears for mortgage applications. What might have been a quick mortgage acceptance is now subject to manual review. This could slow down the process considerably. You may need mortgage acceptance fast to close on just the right real estate. You could lose out on a home you want badly because of the slow down caused by statements in writing on credit reports. If you know there is something on your credit report that requires explanation try explaining it in person to the banker instead.