Something that a lot of consumers don’t know is that they are able to add 100 words of “explanation” to their credit report, this is covered under the fair credit reporting act (FCRA). Experian & TransUnion allow consumers to add multiple statements whereas Equifax only allows one statement.
How To Add A Statement Of Explanation To Your
- Get a copy of the credit reports you want to add the statement to. (This can be done for free once per twelve months from the government approved website http://www.annualcreditreport.com, alternatively read our guide to order it via phone or mail)
- Follow the instructions found on each of the reports, these differ from credit bureau to credit bureau
Are Adding Statements Useful?
Most lending decisions are completely automated now-a-days, looking mostly at credit scores, income levels and employment history. Which means that even if you add a statement of explanation (sometimes called a personal statement) the chance that it’s going to be read is very low.
If an item on your credit report is incomplete or inaccurate, then you should be disputing this item rather than adding a statement. If you disagree with the outcome of the dispute, feel free to add a statement of explanation – just be warned that most creditors won’t take this into account when making their decision.
