Letter in Our Credit File???

[BPT]

We filed bankruptcy in March 2004, discharged in June 2004. We are planning to move to another state within the next year, and in talking with a realtor there, they recommended we file a letter in our credit report to explain the "why" of our bankruptcy since that can make a difference to lenders.

Our circumstances were that in the last few years before filing, we were paying mainly on accumulated interest in credit card accounts. We never missed any payments, but could not get the credit card holders to work with us re lowering their interest rates. My husband became 100% disabled in 2000 and no longer able to work. Still, we continued to make all the credit card payments although it was a struggle. When I had to leave my job for health reasons in December of 2003, it was no longer possible to make the payments. We retained our home and vehicles, and in the year+ since discharge, we finally paid off our second mortgage and the one vehicle we had stilled owed on.

In the letter to go in the credit file, we know we need to definitely mention the matters of having to stop work due to medical reasons. But should we also point out that we had tried to get the credit card companies to work with us and they would not do so?

Anyone see pros/cons to these two options?

BPT

[BPT]

Thanks

Gee ... to date, 47 people have looked at my question, and not one had an opinion to offer.

Thanks a bunch.
BPT

[HHM]

Sorry, but my knowledge, and probably most of those persons on this board, does not cover the individual policies of mortgage companies and whether a statement in your credit report will help or hurt. I can tell you that most creditors don't even look at the "consumer statements" that a person may insert in their file. So I don't think it much matters, but that is just my personal opinion. However, your realtor probably knows better than anyone here because they work with Mortgage Brokers.

[Minnymouth]

Yeah, Sorry too. Most of us didn't know how to answer for you.
To ease your own mind, include a "consumer statement", because if the mortgage company or anyone else gets a print-out of your credit report - they will be reading your statement.

Who knows, can't hurt!!! Maybe the effort will pay off for you!!

Minny

[HHM]

Yeah, Sorry too. Most of us didn't know how to answer for you.
To ease your own mind, include a "consumer statement", because if the mortgage company or anyone else gets a print-out of your credit report - they will be reading your statement.

Who knows, can't hurt!!! Maybe the effort will pay off for you!!

Minny

Actually, regarding those consumer statements, my understanding is that the Consumer Statement is not automatically printed out when you pull the credit report, the credit report will merely mention if one is avialable, hence, lenders generally don't see the consumer statements unless they go get it.

[Minnymouth]

HHM
Glad to know that, as I thought they would also see that if they pulled a copy of the complete credit report......

Thanks for the info!

Minny

[HHM]

HHM
Glad to know that, as I thought they would also see that if they pulled a copy of the complete credit report......

Thanks for the info!

Minny

Yeah, it just depends on the lenders type of subscription with the credit reporting agencies. On the commerical side of credit reporting, there are litereally dozens of options (all with various prices) for getting credit reports and you can pick and choose what you get and what you don't. I would also assume that if the lender pulled a "full" report it would include the consumer statements, but invariably, all "commerical" credit reports I have seen merely mention that a consumer statement is avialable or not and then give a special web address for the lender to go look at it if they want.

Since a consumer statement does not factor into the credit score, I am not sure of what real value they are. I personally don't think you need to explain in your credit report "why" you filed for BK. The Consumer Statements are better for addressing disputes that are not getting resolved to yoru satisfaction, or to explain particular entries.

[BPT]

Thanks, everyone -- I appreciate the input.

I'm surprised that a statement might not be seen by someone unless they specifically asked for it. I have always understood that putting a letter into one's credit file was important to do to explain this or that, and that anyone requesting credit information would automatically see that. I am almost positive that I have seen/heard this recommendation made over and over with regard to discussions about the credit bureaus and credit files.

Again, many thanks!
BPT