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Chapter 4. Credit Scoring Myths > Myth 7: Adding a 100-Word Statement to Your F...

Myth 7: Adding a 100-Word Statement to Your File Can Help Your Score If You Have an Unresolved Dispute with a Lender

Dave in Los Angeles wound up in a protracted fight with his phone company, which for months billed him for a phone line that, in fact, never worked. He went round and round with the company's technical service, customer service, and billing department. Finally, he gave up, refusing to pay the bill—even when it went into collections and onto his credit report. Dave figured he could offset the damage to his credit by sending the credit bureaus a 100-word statement explaining the problem.

Federal law does give you the right to have such statements attached to your credit file. Unfortunately, the credit scoring formula can't read—at least not in the traditional sense. It calculates scores based on how items on your credit report are coded, and these 100-word statements aren't coded at all, so they're not counted.


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