I know we all like to get the last word in but there can be some downsides to registering a consumer statement with Equifax and TransUnion. However, we should probably cover a few things first.
There is a section on your report called a consumer statement where you can give your two cents or your side of the story. You can add your consumer statement to both Equifax and TransUnion by completing the dispute process but there are some rules to follow. With Equifax your 2 cents can be up to 400 words. With TransUnion you have 100 words with the exception of Saskatchewanians, they get 200 words. This note will not affect the score in anyway. Both Equifax and TransUnion will not accept any statement that they deem as aggressive, defamatory or inappropriate. Your 2 cents will stay on the reports for 6 years each.
I hardly ever recommend registering your 2 cents on the report. It is a takes a lot of your time to submit and most underwriting happens electronically, so no one will see it anyways. When you apply for major financing you can talk to your mortgage specialist or business banker about the situation and they can submit your back story with your application. I have also seen a consumer statement backfire. Allan, had been through a bankruptcy due to not have the right insurance and battling cancer. He registered his 2 cents because he thought future lenders should know the reason behind the insolvency. The problem came because he registered his consumer statement 2 years after the incident. Even after the bankruptcy was completely removed from his report, he was declined for best rates with major financing. The underwriter saw the bankruptcy in the consumer note which was not allowed based on their lending policy. Allan’s attempt at helping the situation ended up getting him declined.
If you have a really good reason for the negative showing up on your report and you want to jump through the hoops than I say go for it. However, just make sure that you remove the statement as soon as the negative is off the report so it doesn’t hold you back at all.
