Additional Questions About Credit Score

Do creditors read the 100-word statement?

The Fair Credit Reporting Act gives consumers the right to add a brief statement to their credit reports explaining disputed items. Our experience has shown, however, that these statements are at best unhelpful, and at worst, damaging.

Many misinformed credit experts suggest using this statement to explain your side of the story when a negative item on your credit reports is lowering your credit score. Unfortunately, because human eyes rarely read through the details of your credit reports, this explanation most likely will have zero effect on a creditor's opinion of your creditworthiness.

Even worse, when you add a statement on your credit reports such as "these payments were only late because there was a problem with the company's automatic withdrawal system", it can be interpreted as an admission of guilt. If you try to dispute the item in the future, the credit bureaus will not need to bother contacting the credit grantor to determine the accuracy of the negative item because your credit statement already admits you were late in making the payment.

Because of their ability to hinder your credit repair efforts, we suggest making 100-word statements the first things you delete from your credit file.

Does the CCCS help restore credit?

Consumer Credit Counseling Service or CCCS is a nonprofit debt counseling service that assists consumers who are over their heads in debt. CCCS is funded and controlled by certain credit grantors and credit bureaus. Often, CCCS provides a beneficial service to the consumer.

Because of the obvious allegiance between CCCS and other consumer credit industry players, you cannot reasonably expect CCCS to do anything that such interests would frown upon, such as help you restore your credit. In fact, if you decide to leave CCCS before you have finished their program, they may list your failure to complete the process as a negative listing on your credit report.

When you participate in the CCCS program, your creditors will sometimes (though rarely) note it on your credit report. The fact that you resorted to a debt counseling program is a huge red flag for prospective credit grantors. Remember, paying off your debts is a step in the right direction, but it does not restore your credit.

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Lexington Law has helped clients work towards fair and accurate credit scores by leveraging their rights. We’ve helped hundreds of thousands of clients remove unfair, inaccurate and unverified accounts from their credit reports.

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