If you have ever tried to dispute items on your credit report, you may have received a response from the credit bureaus stating they performed their “investigation.” The bureaus may also tell you that they “verified” whatever item you disputed. This means that negative item will remain on your credit report.

In paragraph number two of a credit bureau dispute response the bureaus encourage you to add a 100-word consumer statement to your report. This is where many people add a short essay on why they deserve credit.

People often mistakenly use the 100-word statement to explain some situation that led to their bad credit. For example, they may want to justify late payments with the loss of a job or a medical condition.

However, do not be misled by the “opportunity” to add a consumer statement to your credit report.

It may look like the credit bureaus are doing you a favor by adding your consumer statement. However, it is really just another technique the credit bureaus use against you.

Let’s assume that you were to attach a statement like this: “I was only late on my credit cards because I was laid off from work. Once I found another job I caught up on all my bills and have never been late since.”

It may seem unreasonable to punish somebody for losing her job. Especially if she caught up on all her bills.

However, the credit bureaus and creditors read such a consumer statement entirely different. They don’t see a good person who went through some brief and unexpected hard times.

Her inability to make payments is seen as a sign of weakness and/or irresponsibility. They believe that she should have emergency money to pay bills during times of emergency.

The 100-word statement also has additional hidden dangers. For instance, adding such a statement confirms your guilt. It is direct proof that you were late on those payments. Moreover, you put yourself on perilous footing should you decide to hire a credit correction law firm in the future. The credit bureaus will ignore any future disputes on your behalf because you have already admitted guilt. There is no reason for them to conduct an investigation. Finally, you have put yourself into a category of consumers that potential creditors avoid. Any potential creditor may avoid giving you credit out of fear that you will likewise default on payment should you run into a rough financial patch in the future.

Nowadays applications for new credit such as a credit card or car loan are based upon your score – not your statement. Therefore, the statement is only a weapon that the bureaus can use to ignore your credit report disputes.

Briefly, the 100-word statement is dangerous to your credit file. It serves no good purpose for the consumer whatsoever.