Myths of Credit Repair pt. 5

Myth #5 involves the 100 word statement that you are allowed to have placed on your credit report. Many credit repair "experts" tell you to include a statement since it will help explain why something appears on your report. They advocate a statement such as "I was sick for 4 weeks and unable to work, that's why I have 6 late payments the in June of 2004".

Myth #5 - The credit bureau allows me to submit my 100-word explaination. Creditors will read my statement and take it into consideration.

True and False, in that order. Yes, you can submit a statement that will appear on your report. There is NO creditor that I know of that reads these statements and bases their decisions on them. In fact, they can be considered as a voluntary admission that the negative items on your report are yours. If you have these on your report, you should write to the credit reporting agencies and have them deleted right away!

Be back again soon with more credit myths.

Scott

Scott Swinford is an Executive Consultant for the US Consumer Credit Restoration Association and a Certified Mortgage Planning Specialist in Northwest Indiana. If you have any questions, you can send email to scott@USCCRAonline.com.