The Harsh Reality About Making a One Hundred Word Statement

The Fair Credit Reporting Act (FCRA) offers the American consumer with many options for dealing with derogatory information that has been placed on their consumer credit report by creditors and lenders. One of the many options provided for by the Fair Credit Reporting Act is the opportunity for all consumers to make a one hundred word statement explaining to creditors the specific situation surrounding the derogatory information associated with any one of the accounts on their consumer credit report. The idea was intended to allow consumers the option to explain their situation so that creditors and lenders would have the opportunity to consider that information prior to making their decision to extend credit or make a loan to that consumer.nnWhile the option to make a one hundred word statement regarding derogatory information on your consumer credit report makes amazing sense in theory, for numerous reasons it does not work out to be in the consumers' best interest to do so. To be quite honest, there are more than one reasons why it is better that consumers refrain from this option altogether as it will most likely end up hurting their credit file much more than it could help to improve their specific credit situation. nnCreditors and lenders follow very specific guidelines when deciding to make a loan or extend credit. Those guidelines have very specific credit score requirements that must be met prior to a positive decision can be made to extend credit or lend money. In certain cases a one hundred word statement may be considered by an underwriter when deciding to extend credit or lend money but, only after the required minimum score has been met. And regardless how great your explanation is for having a derogatory item on your credit file, it will not help your credit score. Once again, it will not help your credit score.nnAnother very important issue that should be taken into consideration prior to making a one hundred word statement regarding derogatory information on your personal credit file is the fact that you only have one shot to do it right. The statement made will become a part of your consumer credit report and cannot be amended, revised or removed should you choose to at a later time. The most important point that needs to be clearly understood is that by deciding to make a statement, you run the risk of making it almost impossible to remove the negative item at a later time, whether it is by yourself or a professional credit restoration organization.nnBeing that it will not help your credit score and only make it more difficult for the derogatory account to be erased or resolved at a later time, submitting a one hundred word statement is usually a bad idea. One of the most effective ways to prevent derogatory credit items from hurting your credit score is to have them deleted from your personal credit report through professional credit report repair. Should you choose to take action and look for the assistance of a credit restoration organization, it is very important to understand that all credit repair organizations are not created equal. Be sure to read my article that discusses the different types of credit repair organizations that make up the industry and what to look for when choosing one that best suits your needs.

About the Author

Alexander Wright is a professional article writer specializing in the areas of credit repair and credit restoration. Alexander writes for Credit Restoration Bureau (CRB). CRB is located in the Hampton Roads area of Virginia and has helped thousands of American consumers get a second chance with their credit through credit report repair.

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