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.

The Fair Credit Reporting Act (FCRA) allows you to attach a 100-word essay to your credit report. This is the opportunity to explain the negative information and argue that you deserve new 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."

The unexpected loss of employment may sound like a reasonable explanation to be late once or twice on a credit card bill. Plus, I would give that person credit for catching up on her bills and staying current since the bad financial spell.

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.

Instead, the credit bureaus see somebody who isn't smart enough to have an emergency fund to cover basic minimum payments should something go wrong financially.

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.

If a creditor does not read your statement, then nobody will. Most applications are reviewed digitally and so the 100-word statement serves no purpose other than a weapon credit bureaus use against you.

In sum, ignore the temptation to tell your side of the story. Resist the urge to "justify" your being late on that credit card bill or car payment. Steer clear of adding the deadly 100-word consumer statement.

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