Should I Add a Consumer Statement to My Credit Report?

What Is a Consumer Statement on a Credit Report?

A consumer statement is a short written explanation you attach to your credit report to give context for information listed in your file. Anyone who pulls your report can read it, including lenders reviewing a new application.

Under the Fair Credit Reporting Act, you have the right to file a brief statement when a dispute doesn't resolve the way you wanted. Credit bureaus can limit your statement to 100 words.

Your statement will sit alongside the tradeline (account) listed on your credit report rather than replacing it. While future lenders can review your statement, they're not obligated to change how they evaluate the negative item it's attached to.

Types of Consumer Statements on a Credit Report

There are two kinds of statements you can request be added to your credit report:

• Account-specific statement: This statement is linked to a single account in your credit history. If a delinquency was the result of extended unemployment, for example, you can attach a statement to that account explaining the circumstances. It comes off your report at the same time the account does. Account-specific statements come in two forms:

  • A statement of explanation gives the reason behind a late payment or delinquency you aren't disputing.
  • A statement of dispute tells lenders you disagree with the way an account is being reported.
• General statement: A general statement applies to multiple entries in your credit history or to your history in its entirety. This may be worth considering if you fell behind on several accounts at once for the same reason. General statements remain on your credit report for two years unless you ask to have one removed sooner.

When to Consider Adding a Consumer Statement to Your Credit Report

A consumer statement can add useful context to your credit report, but there are some clear limits to what it can do. It won't change the entry itself or affect your credit score.

That said, here are some situations where it can be helpful.

When You Need to Provide Context for a Failed Dispute

You have the right to dispute credit report information you deem to be inaccurate, incomplete or unverifiable. But if the credit bureau can verify the information as accurate, it'll stay put. In this scenario, adding a statement of dispute tells future lenders that you disagree with the status of the tradeline and why.

When You're Dealing With Identity Theft

If you're a victim of identity theft, you may add a general consumer statement to let prospective lenders know the situation and that you're taking steps to clear it up. On top of that, you'll want to take other steps, such as filing an identity theft report with the Federal Trade Commission, adding a fraud alert to your credit file and possibly even freezing your credit reports—steps you have the right to take.

Learn more: How to Report Identity Theft

When an Extenuating Circumstance Caused the Damage

If you missed payments because of a natural disaster, extended unemployment or a medical emergency, a short statement explaining the situation could help your case. This is especially true if you can show that you managed your credit responsibly before and after the event and can provide documentation.

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How to Add or Edit a Consumer Statement

Each of the three credit bureaus maintains its own file, so you'll need to make three separate requests when adding or revising a consumer statement.

With Experian, a statement of dispute goes in through the online Dispute Center. Sign in to your account, choose the item in dispute and select Add a Statement from the menu of dispute reasons. TransUnion and Equifax each handle their own requests, so you'll need to contact them directly.

You can also mail a signed written request to each bureau's dispute address. Include the exact wording you want on your report, along with your full name, date of birth, Social Security number and current address, plus any other address you've lived at in the past two years. You'll also need to enclose copies of a government-issued ID and a bill or bank statement showing your current address.

You can mail your request to the following addresses:

• Experian: P.O. Box 4500, Allen, TX 75013
• TransUnion Consumer Solutions: P.O. Box 2000, Chester, PA 19016
• Equifax Information Services LLC: P.O. Box 740256, Atlanta, GA 30374

You can edit or remove a consumer statement on your credit report at any time.

The Bottom Line

A consumer statement can provide important context to a negative item on your credit reports, especially when a lender uses a manual underwriting process. On top of that, it's important to take other steps to build and maintain a good credit history.

One way to do that is by regularly monitoring your credit. Experian's free credit monitoring tracks your Experian credit report and FICO^® Score^Θ, with alerts when something in your file changes.