March 31, 2009
If you have an item on your credit report that you are not please with or think it is on there unjustly, you can consider adding a 100 word statement. This is one of your credit rights. The 100 words are there for you to tell your side of the story. But the question is should you add one to your credit report? Is it worth it?
Think about this. Suppose you are paying for a service like a phone line and it only works sometimes. A likely thought is to not pay for this poor service because it was up to your standard. But the phone company does not see it that way and consistently tries to collect from you. This continues to escalate and now the amount due has been sent to collections.
There is not much you can do about it. It will be on your credit report. The only way to tell your side of the story is to add a 100 word statement regarding this item. You send a letter to the credit bureaus and have a statement added.
This might make you feel like you are protecting yourself but is it really doing anything for you? The facts are your credit score is unable to take into account any 100 word statements while calculating your score. So while you might have been trying to protect yourself from a lower credit score, there is not much you can do.
Another factor to consider is creditors often overlook these 100 word statements. They are not interested in them and are more interest in the quantitative data. So that leaves you with a possible statement that will hardly help your credit standing and the item still on your credit report.
There is something though about being able to tell you side. A feeling that is being record and written down to be read. That is a good feeling especially when you have been wronged. Also, a creditor could read it and it is there if a potential employer would like to read it as well. But there is no telling what the effect will be.
Sometimes it is better off than spending the time drafting and submitting a 100 word statement to work with the account to come to a settlement on the debt. This will have a better effect on your credit. Also, in the meantime if you have added a 100 word statement to your credit report and now have settled the debt, you should have it removed. It will be a sign that you have in the past had a problem with a account.