Credit Repair is relatively new to the financial industry and has started to gain some notoriety within the last several years. With this young industry’s new found fame there has been many questions about what exactly is credit repair, so let me help define it for you: Credit Repair is working to correct or remove inaccurate and/or unverifiable information from a consumer’s credit report. The Credit Repair Organizations Act allows for a consumer to hire a third party company (Credit Repair Company) to dispute erroneous accounts on their behalf. When a Credit Repair Company has been hired they assume the responsibility of the dispute process with the credit bureaus and creditors. Understanding what happens during the dispute process will help you have peace of mind about the time and practices of a Credit Repair Company. Step 1: Identify The dispute process outlined in the Fair Credit Reporting Act allows a consumer the right to dispute an account that is believed to be inaccurate or unverifiable. A trained professional can help a client identify errors on a credit report that can be disputed. Creating the proper dispute will help the credit bureaus and creditors understand what is being asked for by the consumer and help expedite the process. Step 2: Dispute When the credit bureaus receive a dispute letter from (or on behalf of) a consumer the letter is scanned into a computer system called e-OSCAR (Electronic - Online Solution for Complete and Accurate Reporting). E-OSCAR reviews the dispute letter and then will identify the account being disputed and the dispute instructions for the account. At that time the dispute instructions are translated into a 3 digit code and transmitted to the creditor. Often times the only information the creditor receives is the 3 digit code and no additional documentation or instruction.. Knowing how to work with E-OSCAR and getting the correct 3 digit code is crucial in the outcome and time it take to get repaired. Step 3: Response After the creditor has received the 3 digit code disputing the account, they are allowed up to 30 days to investigate and it is their responsibility to either correct the error, delete the account, or leave the account unchanged. The creditor will then respond to the credit bureaus notifying them of their action and in turn the credit bureaus will respond to the consumer notifying them of the result of the disputes. ***DISCLAIMER*** While this article makes the process sound fast and easy please keep in mind this is a general overview of the dispute process, but of course like any process there are variations in the execution. Often times just 1 round of disputes with the credit bureaus is not enough to get inaccurate or unverifiable information removed from a credit report. This is why it is extremely important to work with a knowledgeable and reputability company like Credit Guys.
Our President Dave Fulk was interviewed and quoted in this article from Realtor.com CLICK HERE TO READ THE ARTICLE
A Few Credit Myths Myth #1:You share a credit score with your spouse. Myth #2:Your credit score only counts when you're looking to borrow money. Myth #3Always pay your credit card balance in full and that will give you the best credit. Myth #4:If a judge in a divorce preceding orders a spouse to pay a debt, it's no longer affected by credit. Myth #5:Multiple auto/mortgage loan inquiries will hurt your score for each one. Myth #6:A serious financial crisis like as a foreclosure or bankruptcy permanently hurts your credit score. Myth #7FICO scores are locked in for six months, and that they change every six months. Myth #8Paying off an old collection or charge off will increase your credit score. Myth #9The credit bureaus are government agencies. Myth #10Your salary makes a difference in your credit score These are just a few of the top myths we have to debunk on a routine basis. Contact us if you would like more info on our other top Credit Myths