Credit repair specialists commonly send dispute letters to creditors to ask if items on a client’s credit report are valid. Regardless of how well you write the letter, it’s possible the three credit bureaus will say all of the items are valid, and the conversation is over.
A lesser credit repair specialist would stop the communication there. But, not you, because you are a credit hero. In this situation, your plan of action should be to send a second-round dispute letter.
What Is a Round-Two Dispute Letter?
In the first dispute letter, you asked Experian, Equifax, and TransUnion to verify items on a credit report. If the bureaus respond to your first letter implying they’ve been able to verify all of the items you’ve submitted, the second dispute letter should zero in on a single item in dispute.
There are a variety of round-two dispute letters that dive into these questions.
Letters to a Credit Bureau
Even if a credit bureau responded to your first letter saying they’ve verified the debt in question, you can follow up with them again. A round two letter to a credit bureau is a more focused approach than the first. Rather than disputing 3-5 items, you’ll dispute a single error on your client’s credit report and request:
- The debt to be removed
- To delete late payments or other negative items
- To remove inaccuracies, such as debt your client never incurred
If you sent your client’s round one letter through Credit Repair Cloud’s software, the item in dispute can be easily repopulated in a second round dispute letter template.
Are you new to Credit Repair Cloud? Download a free dispute letter for credit bureaus template today.
Letters to a Creditor or Collection Agency
After reaching out to the credit bureaus, you should consider contacting the creditors directly. There are several reasons to write a creditor as a second round letter. For instance, you can:
- Challenge the validity of the negative item
- Request debt settlement
- Request modified payments
- Request the deletion of one or two missed payments
If a creditor or collection agency can’t verify the debt, they must delete it. Additionally, if the debt is your client’s, you can contact a creditor or collection agency to see if there is room for negotiation.
Goodwill Adjustment Letter
Credit repair specialists will send a goodwill letter to creditors if their client is:
- Up to date on their payments
- Paying down debts consistently
- Still experiencing continued hardship from their previous financial shortcomings
The most important component of a goodwill letter is that your client takes responsibility for their actions, and if the lender can forgive them, it will help your client overcome their financial hurdles.
A goodwill letter should have a sincere tone while asking lenders to please remove the late payment records that hold your client back.
Pay for Delete Letter
If the credit bureaus or creditors are able to validate the debts on your client’s credit report, it might make sense to follow up with a pay for delete letter.
A pay for delete letter is a negotiation tool for debts on a client’s report that actually belong to them. With a pay for delete letter, credit repair specialists craft a letter offering to pay a debt in full in exchange for the removal of the late payment record from your client’s credit report.
Some of your clients may need extra help getting out of the vicious cycle of debt. If you have a client who is doing everything possible to pay down their debts, but still isn’t cutting it, a hardship letter should be sent to a creditor.
A hardship letter describes your client's situation:
- Are they a victim of a natural disaster?
- Did they recently lose their job?
- Was your client serving in the military?
- Has their financial situation changed?
After defining your client’s hardship to a creditor, a hardship letter then asks for assistance. Can a creditor decrease monthly payments or change the payment cycle to help out?
After detailing your client’s hardships, a creditor may approve special arrangements so your client can get back on track.
How to Send a Round Two Letter?
Credit Repair Cloud makes it easy to submit a second letter regardless of the type.
For starters, you don’t need to re-enter information that’s already been imported into the system, saving time and eliminating the risk of conflicting submissions.
If you’re already a Credit Repair Cloud user, you can the aforementioned information in Wizard 3. From there, follow these steps as outlined in Credit Repair Cloud’s support blog:
- Choose Radio Button #2 for Round 2 and then choose Bureau or Creditor/Furnisher
- Choose just one (1) saved Pending Item. The Round 2 letter is about an item you’ve already disputed, so will be listed as “Pending”
- Choose an appropriate letter from the library
- Click “Next” and you’re ready to go
During step four, you can make any last minute changes you need. From here, you’re ready to save, print and send.
Client data will automatically save in your Credit Repair Cloud client records which makes submitting, following up, and on-going credit repair maintenance organized and simple.
Taking Action After a Second Dispute Letter
If a second dispute letter doesn’t work, don’t fret, just repeat the process.
You can submit the same letter or try a different template. Luckily, by using Credit Repair Cloud, the process is scalable and efficient, regardless of how many rounds you go through.
Credit Repair Cloud understands that a good or excellent credit score is critical to your clients. Without a strong credit score, it’s difficult to land a job, get a car, or have stable housing. That’s why we strive to make the credit repair process for your clients as simple and effective as possible.