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The credit agencies provide you with the ability to place an explanation of why or what happened against any individual credit report entry. Although many individuals feel that they have valid excuses on why a debt wasn't paid or wasn't paid on time these statements do nothing for your credit or credit score. Why? There are a couple of reasons:

In myth number 2 we explained that your file is updated and your credit score is created by a computer - that cannot actually read your explanation even if it has validity. Creditors, seldom, if ever, see any comments or statements that are posted against individual line items in your credit report.

Secondarily, by trying to explain why you didn't pay a debt or were late in paying, the only thing that you have accomplished is to confirm the line item. As an example, if you were to submit a response to a line item in your credit report that said: "I was late in paying my bills because my the company I worked for went out of business and I lost my job. As soon as I was employed again I have paid the account on time every month."

Because this statement only confirms that you did pay late, it makes it much more difficult to engage in a credit repair exercise in the future.

You may think that your explanation is a valid excuse for not paying your bills on time, however what it really says is: "I did not pay my creditors on time because I am to stupid to have stashed some money away to cover minimum payment requirements in the event I loose my job or for some other unforeseen event should occur. I, therefore, am not a good credit risk!

It goes farther than that. If at some point in the future you or an agent you have contracted decide to dispute that line item, it becomes very difficult as you have already admitted to the late payments and because of that why would the case be reopened? Your response has done nothing more than eliminate further conversation with respect to the arrears.

As a general statement, creditors and credit reporting agencies do not accept matters pertaining to your health or employment status, as being acceptable excuses for not paying your accounts on time.

To sum up: Do not take the opportunity, no matter what your excuse, to provide an explanation against any specific line item in your credit report. It won't do anything for you or your credit score in the short or long-term and will make the undertaking of a credit repair that much more difficult.

Continued........

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