Disputing negative credit items with the credit bureaus Equifax, Experian, and Transunion can often be a challenge. Many times the bureaus respond to a dispute with a letter indicating they verified the disputed item. Accordingly, you are stuck with the information being reported about you.

Credit bureaus always respond to disputes with a letter where they inform you that you have the right to attach a 100-word statement to your report. Often, people believe this is a good opportunity to explain away their negative information or argue their case.

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.

Do not mistake the 100-word statement for good faith on the part of the credit bureaus. As you will see, such a statement is usually used against your best interests.

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.”

It may seem unreasonable to punish somebody for losing her job. Especially if she caught up on all her bills.

Credit bureaus interpret a late payment one way. They interpret it as an indication of a bad credit risk.

Credit bureaus interpret the situation as somebody who is irresponsible. They see her as a bad credit risk because she does not have enough savings to cover bills then things get tough.

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.

Briefly, the 100-word statement is dangerous to your credit file. It serves no good purpose for the consumer whatsoever.

Identity theft is a crime that is getting worse nowadays. The number of cases with this crime is increasing. A lot of people are doing this, even cops, government and other people.

As example, if there is a person with the name James Dick and fake documents were done for the same person but in a different name such as John Terry; this will allow the same person with two names to do all possible documents desired. He can have loans to be approved in big amounts, he will also be enabled to access and utilize credit cards to buy items, and much more to have the best utility of both identities.

Now it is possible that Dick has already took assets worth hundreds of thousands of dollars or maybe over a million dollars from banks amongst other businesses. Now who is going to pay for all this? Surely the bank, he has taken everything on credit and is expected to pay off his loans and the credits he has taken.

After this, Jonard Weelord leaves the place where he has so much credit to pay. But no one knows because he gave a different or a fake name to sign every document needed, even the personal document was fake. Maybe the bank did have a photograph, but changing your looks and appearance is very easy. Shaving your hair is one way or maybe putting on wig. They don’t even know where the hell he is.

He may just go overseas and settle in a cheaper county like India or Pakistan and that is that. His life is made. But now the businesses and the banks suffer big time, they have lost a million bucks, something a little hard to digest.

For instance, the companies are already big in business that they could recover in no time. But what if another man does what Jonard Weelord had done? If you own the bank, would you just let him get away with what he did?

So businesses suffer greatly in monetary respects besides all their records all somewhat washed and so is their trust and confidence in their customers which has grave implications on customers who are genuine. So the company stands a loss even at the reputation front.

It is certain that the crimes of identity thefts have worse implications that can affect the business really bad. It can certainly be considered as very serious problems, which are very hard to get over with, for big banks and small ones, as well.