Definition
A consumer statement or personal statement is a narrative that a consumer may add to their credit report to explain certain items of their credit history.
Analysis
A consumer statement is not factored into the credit score. It can be used however to assist in the subjective review of a credit report.
For example, a consumer that had a car accident 3 years ago may want to include this information if it explains why they fell behind on certain debt payments at that same point in time. This could be taken into consideration for some credit underwriting decisions. Additionally, an employer that performs a credit check might form an opinion on the applicant that includes the consumer statement.
A consumer statement may be added by contacting the three main credit bureaus. It will remain indefinitely unless the consumer decides to remove it.
