Why Disputing Credit History Online Can Hurt More Than Help

Google "Credit Repair" these days and you will be quickly bombarded with thousands of sites, professional and amateur, claiming to expose the process of credit restoration in a matter of "5 easy steps" or "3 simple tools". The truth is, that there are ways you can help improve your credit score without the help of a professional. However, if you are looking to go down that path alone, you need to be fully informed of both the benefits and the risks of the credit disputing process.

"As in most cases when something "seems too good to be true", it is. The same is true for the online credit dispute process."

The main way most sites encourage "DIY Credit Repair" is by disputing online with the 3 main credit bureaus: Experian, Equifax and TransUnion. When you view your credit tradelines in your credit history there is this simply worded, almost suspiciously simple button to click next to each one: "DISPUTE".

Seems easy enough right? I just go down the line and dispute any negative or inaccurate items on my credit report and then sit back and watch my credit score soar... wrong. As in most cases when something "seems too good to be true" it is. The same is true for the online credit dispute process. What that cute little button distracts you from reading is all the fine print that goes along with disputing online directly to the main credit bureaus.

All three major credit bureaus have arbitration agreements in their terms of use that include a what's called a forced arbitration clause. This means that if you get your credit report online and find an error on it, you can still dispute the error. However, if you disagree with how the credit bureau managed the dispute and want to take the bureau to court, the credit bureau can legally press the arbitration clause and force you to give up your right to argue your case before a jury.

This can make it much more difficult to prove your case and win substantial damages if you've been financially wronged. When taken to arbitration, it will be solely up to the arbitrator to decide your case's outcome (whoa!). If you disagree with the arbitrator's decision, you are not allowed to appeal.

So, why don't just go dispute it with the original lender? Doing so allows another way to trip up the consumer and stop your disputes in their tracks: According the FCRA, if the lender does not properly investigate the dispute, you have no further recourse if you did not first report it to the main credit bureaus.

So, lenders and credit reporting agencies are set up to send you running down dead-ends and eventually into brick walls. If you are wondering why we have so much success in our process, it is because we have been working for decades in the credit repair industry and have in-depth knowledge of the credit reporting process. We're aren't saying that it's impossible to fix your credit alone, however it involves lots of research, legal knowledge and know-how, memorizing credit bureau regulations, detailed information on the