How The OCR And E-OSCAR System Impact Your Credit Disputes
When working to repair your credit for a major life purchase, every point counts. If you are in the process of making a significant purchase and are looking at your credit report for the first time, it is likely to be an eye-opening experience. And, if you are like 80% of Americans, you are likely to find mistakes on your credit reports.
Misinformation on your credit report is not a mistake to take lightly. Inaccurate reports about your financial history can cost you valuable points on your credit score that affect your ability to obtain a loan. If you find a mistake on your credit report, the best thing to do is file a dispute.
A credit dispute is an official letter to a credit bureau that questions the validity of a transaction registered under your name. Once received, the credit bureau processes the letter using OCR and E-Oscar systems. Here is how the use of those two systems impacts your credit dispute.
What is Optical Character Recognition (OCR)?
You probably expect that humans read all credit dispute letters. Unfortunately, you are wrong — the initial screening process for credit dispute letters performed by an OCR (Optical Character Recognition) program.
OCR systems work by thoroughly scanning each letter to pull out information and keywords the credit bureaus have deemed important. After a complete scan, letters get marked as either legitimate or frivolous. Frivolous disputes get discarded, and legitimate disputes move on to the next step of the process – an E-Oscar system.
What is the E-Oscar Systems?
If your letter survives OCR, next, it must stand up against an E-Oscar system. Like OCR, E-Oscar also uses technology to scan each letter. Once scanned, each letter that passes through the E-Oscar system receives two-letter code that categorizes the dispute. Disputes are granted based upon the validity of this code in conjunction with the information on your credit report.
Why OCR and E-Oscar Matter
OCR and E-Oscar systems eliminate any human interaction with credit disputes leaving very little room for error. Improperly worded disputes risk being thrown out in the first round of reviews or mislabeled in the second.
With the help of Quest Credit Solutions, you can be on your way to a better credit score and a stronger financial future in no time. Contact our offices today to obtain a detailed credit report and see whether or not you have any inaccurate information on your credit reports.
