If you’re considering adding a consumer statement to your credit report to explain a late payment, dispute, or financial hardship—think again. While it might seem like a good idea, the truth is that adding a consumer statement can often do more harm than good.
Here’s what you need to know before inserting your story into your credit file.
What Is a Consumer Statement?
Under the Fair credit reporting Act, you’re allowed to add a 100-word consumer statement to your credit report when an item you’ve disputed remains after being verified by a creditor.
People typically use this opportunity to explain:
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Why they missed payments
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The impact of events like a divorce or layoff
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That they don’t agree with the reported information
But while your explanation may be heartfelt and genuine, lenders usually see things very differently.
Why Consumer Statements Often Backfire
From a lender’s perspective, there’s no excuse that outweighs one key question: Did you repay your debts on time?
That’s all most creditors care about. Your 100-word explanation is unlikely to change their view—and may even work against you. Here’s why:
1. It Can Make You Look Financially Irresponsible
Instead of appearing sympathetic, a consumer statement may reinforce the perception that you couldn’t manage your finances—even under pressure.
2. It Won’t Impact Credit Scores
FICO and other scoring models don’t factor in the content of a consumer statement. They rely strictly on your payment history, credit utilization, age of credit, and other numerical data points—not personal narratives.
3. It Signals Red Flags to Lenders
Consumer statements can act as a warning flag, drawing attention to otherwise overlooked issues. Instead of helping your case, they might highlight old negative marks you’d rather lenders not focus on.
A Hidden Problem: Consumer Statements Stay for 10 Years
Even if the issue gets resolved or removed from your credit file, your consumer statement remains—for up to a decade. That means:
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Your statement could outlive the negative entry it refers to
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Lenders could interpret it as a sign of unresolved financial issues
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It might hurt your chances of approval long after the dispute is settled
Real Example:
Say you had a late payment in 2020 and added a consumer statement in 2023. The late payment may fall off by 2027—but your statement might still be visible until 2033, drawing unnecessary attention for six extra years.
A Better Strategy Than Adding a Statement
If you’re worried about how something in your credit report will be viewed, don’t explain it in your credit file. Instead:
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Wait for lenders to ask: If your application is on the borderline, the lender may request more information. That’s the time to explain, in a direct letter—not publicly on your credit report.
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Focus on rebuilding: Improve your FICO score by paying on time, reducing debt, and avoiding new negative marks.
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Clean your report: Dispute inaccurate items and request that outdated or settled accounts be removed.
How to Remove a Consumer Statement
If you’ve already added a consumer statement and want it deleted, you can contact the credit bureaus to request removal.
For TransUnion, send a written request including:
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Your full name and address
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Your TransUnion File Identification Number
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A request to remove the existing consumer statement
Mail it to:
TransUnion Consumer Relations
P.O. Box 2000
Chester, PA 19022
If removal isn’t approved, you’ll have to wait until the 10-year expiration period.
FAQs:
Should I add a consumer statement to explain a bad credit mark?
No. Most lenders ignore or misinterpret consumer statements. It’s better to focus on improving your score and respond directly if a lender asks for clarification.
Will a consumer statement help my credit score?
No. FICO and other credit scoring models do not consider consumer statements when calculating your score.
How long does a consumer statement stay on my credit report?
Up to 10 years—even longer than some negative marks. This can keep old issues visible to lenders far beyond their relevance.
Can I remove a consumer statement once it’s been added?
Yes. Contact the credit bureau (such as TransUnion) with a written request to remove the statement. If unsuccessful, the statement will eventually expire after 10 years.
What’s a better alternative to using a consumer statement?
Improve your overall credit profile and respond directly to lender inquiries. Rebuilding your score and resolving issues quietly is often the best approach.
