Nowadays, most consumers use a method of disputing an item on their credit report via the Online Dispute. What is an Online Credit Dispute? Why would I not want to use the online credit dispute method?

First off, the online dispute was created to assist the credit agencies to process disputes or “correct inaccuracies” (as they put it) in record time. When you go to dispute a credit item online, you may see something like the following.

As you can see the online credit dispute only provides you with some pre-defined reasons for your disputed credit item. It does not allow you to go into detail as to what and why you are actually disputing the item on your credit report. It does, however, provide a small data field for you to give detailed information about your dispute. There is one major drawback, this detailed information will not be reviewed (I’ll explain why later). Furthermore, the reasons that are present for online credit report disputing actually go into a system called E-Oscar. This system is what all of the Credit Agencies use for their credit dispute investigations. The reason that you select for disputing your credit report item online is then converted into a two to three digit code that goes directly into E-Oscar. At that point, E-Oscar shoots it off to the creditor.
Sound easy right? Not so fast…
By using the online credit report dispute process, you are assisting the Credit Agencies in not providing true verification. Do you honestly think that a two to three digit code will tell the Credit Agency exactly why you are disputing a particular item? I think not! Also, by doing the online credit dispute the Credit Agency will never actually see your dispute and they will never actually read your detailed explanation.

Why on earth would you give more power and a bigger advantage to the Credit Agencies?

Now, on the flip side, why would you write a letter?
Writing a proper dispute letter and using the USPS will greatly benefit you during your dispute process. The reason being, as soon as the Credit Agencies receive your letter they have 30 days to perform an investigation.
This means the following: Your letter has to be processed, routed to the correct department through inter office mail, divided into proper stacks (depending on letter type), assigned out to a CSR (not a credit expert), reviewed by the CSR, entered into the E-Oscar system, and finally sent off to the creditor. This whole beginning process will take approximately three to four days. Once the original creditor reviews the dispute and sends it back, the CSR will then enter results and send you a letter displaying the results. This process is very time consuming and as you can imagine millions of dispute letters hit the Credit Agencies a year.

For obvious reasons, you have a higher chance of human error when you factor in writing a letter and mailing it. Why shoot yourself in the foot? Why send an online dispute to dispute your credit report items? By submitting an online credit dispute, you eliminate the human work and you plug directly into the credit agency system.

Clearly, disputing your credit report online is not the way to go!

H & I Credit Solutions

Some folks are under the impression that the older the items are the easier they are to remove. Is that true? Sometimes it is, sometimes not. Depending on the type of item that is being reported it really depends as always if the item is verifiable, accurate or misleading.

Just because an item is old doesn’t mean that it will be easy to remove. Remember, if your old items are verifiable and accurate, they will not be removed. The FCRA strictly states that the credit reporting agencies have to report verifiable and accurate information.

Now, having said that, if your old item or any item is NOT verifiable or accurate it has to be changed or deleted.

Having an accurate credit report with verifiable information will allow consumers to better represent themselves when applying for a loan. It will empower consumers by knowing exactly what is on their report and know what their credit scores are.

It is a great feeling knowing where you stand when negotiating for a loan. There will not be any surprises.

As always Empower Yourself – Educate Yourself – Take Action

H & I Credit Solutions

A lot of consumers want to do something about their credit for many reasons. The problem is that most people do not know what they need to do to take that first step in repairing their credit. The first step to repairing your own credit is very simple.

Step One: You must find out what is on your credit report.

I’ll admit, that I thought at one point, I pay all my bills on time so there is nothing negative on my credit report. My thinking was completely understandable because, if I pay all my bills and I haven’t done anything to jeopardize my report then it should be ok, right? Well stop right there, just because you are a responsible consumer doesn’t mean that someone else hasn’t stolen your identity.

So back to the first step…

Obtain a copy of your credit report from all three credit bureaus. This will allow you to see what is being reported and what is not being reported on each credit bureau. You may find that something that you were completely unaware of is reporting on your report. Something that is not even yours, how would that make you feel?

There are a lot of different sources of which you can pull your credit report. On a previous topic, I discussed how to get your credit report for free from www.annualcreditreport.com. The choice of how you receive your credit report is up to you. After you choose a method, get your copy and look through it. So that is your first step. Remember, all negative items on your credit report have to be verifiable. If the negative items are not verifiable, then by law it has to be removed.

Take that first step.

H & I Credit Solutions

There are a lot of companies out there that offer a free credit report, or do they?

Why do they advertise that you get a free credit report when you actually have to pay for it?

Is there actually a place to get a free credit report?

Why is it so expensive to get your credit report through free credit report companies?

Let me explain, companies that offer you a free credit report, weirdly enough, it is actually free. But, there is a catch. The catch is, you have to sign up for a service. The service that they provide is a monitoring service. This monitoring service includes alerts of changes in your credit report, monthly newsletters about your credit report and the ability to refresh your credit report everyday if you want.

So the question is, is it really a free credit report? Well, considering the fact that your report may be free, however you are signing up for a service that is not free. The only way to truly obtain a free credit report online is to go to www.annualcreditreport.com. Consumers are entitled to a free credit report every year. Now you have to be careful, the trick is to print this report when you view it otherwise you will have to call them and have them mail it to you if you happen to close out of the window in your browser.

There are a lot of credit monitoring companies out there that do offer the service to monitor your credit report, but it’s not free. The great thing about signing up for a credit monitoring service is that you can pull your credit report more than once a year. Another way you can obtain a free credit report is to apply for a credit card and if you get denied then you can call up the “Big 3” credit reporting agencies and request your credit report. Because you were denied a line of credit, the credit agencies will send you a credit report free of charge, so you can review what is on your credit report. Of course you will take an inquiry hit on your report by applying for credit, so it’s a catch 22. Another way you can obtain your credit report for free, would be to apply for a home loan, yes again you take an inquiry hit on your credit report, but at least you will get detailed information of your credit report and you get to see what lenders see.

What I have listed above are definitely ways to get a free credit report, but some include consequences (the credit inquiry hit). When consumers pull their own credit report this does not affect their credit rating at all. That is the advantage of these free credit report companies, you, as a consumer, can “monitor” your credit report with no damaging affect to your credit file.

Thank you for reading and as always have a wonderful day,

H & I Credit Solutions

CONSUMER CREDIT FILE RIGHTS UNDER STATE AND FEDERAL LAW

You have a right to dispute inaccurate information in your credit report by contacting the credit bureau directly. However, neither you nor any ‘credit repair’ company or credit repair organization has the right to have accurate, current, and verifiable information removed from your credit report. The credit bureau must remove accurate, negative information from your report only if it is over 7 years old. Bankruptcy information can be reported for up to 10 years.

You have a right to obtain a copy of your credit report from a credit bureau. You may be charged a reasonable fee for obtaining your credit report. There is no fee, however, if you have been turned down for credit, employment, insurance, or a rental dwelling because of information in your credit report within the preceding 60 days. The credit bureau must provide someone to help you interpret the information in your credit file. You are entitled to receive a free copy of your credit report if you are unemployed and intend to apply for employment in the next 60 days, if you are a recipient of public welfare assistance, or if you have reason to believe that there is inaccurate information in your credit report due to fraud.

You have a right to sue a credit repair organization that violates the Credit Repair Organization Act. The Credit Repair Organization Act prohibits deceptive practices by credit repair organizations.

You have the right to cancel your contract with any credit repair organization for any reason within 3 business days from the date you signed it.

Credit bureaus are required to follow reasonable procedures to ensure that the information they report is accurate.

However, mistakes may occur.

You may, on your own, notify a credit bureau in writing that you dispute the accuracy of information in your credit file. The credit bureau must then re-investigate and modify or remove inaccurate or incomplete information. The credit bureau may not charge any fee for this service. Any pertinent information and copies of all documents you have concerning an error should be given to the credit bureau.

If the credit bureau’s reinvestigation does not resolve the dispute to your satisfaction, you may send a brief statement to the credit bureau, to be kept in your file, explaining why you think the record is inaccurate. The credit bureau must include a summary of your statement about disputed information with any report it issues about you.

The Federal Trade Commission regulates credit bureaus and credit repair organizations.
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