Credit Repair Cloud Blog | How to Start a Credit Repair Business

Credit Repair MythBusters: What Credit Bureaus DON’T Want You To Know

Written by Daniel Rosen | November 30, 2021

When in doubt, follow the money. What do I mean by that, and what does this have to do with you?

Well, if you’ve been paying attention to what’s going on in credit repair, then you probably already know there are a lot of false claims floating around about what credit repair is, what it isn’t, and what’s true under the law.

These rumors are usually false and meant to keep the money flowing to the Banks and Bureaus, while they keep scaring consumers and discouraging credit repair entrepreneurs from helping clients take charge of their own lives, once and for all. 

So today, I’m breaking down the top credit repair myths. 

How do some of these myths get started?

 

The 3 Credit Bureaus take in billions of dollars a year in revenue. And this means that legitimate, hard-working Credit Heroes can put a serious wrench in those Bureaus and Banks and their money-making schemes. 

So when you hear a bunch of negative or misleading buzz about the credit repair industry, the first thing you should always do is follow the money trail back to the source –– which is the Banks and Credit Bureaus. 

And then ask yourself, “What’s in it for them?”

Well, the answer is: They hate credit repair because credit repair costs them a lot of money!  They have to hire a lot of people to clean up all the errors that we point out.  So a lot of those articles you read online are sponsored by them. 

  • So here’s Myth #1: Credit repair companies are a scam.

Credit Bureaus say that paying a credit repair company doesn’t work and it’s all a scam. The Bureaus and the Federal Trade Commission tell people that there’s nothing credit repair companies can do that anyone can’t do themselves. Of course, anyone can gather all of the necessary information, write to the Bureaus, and request the removal of any items they think are errors. 

But hold on –– isn’t that true about everything?

You can do your own taxes and you can cut your own hair.  You can do your own gardening; So why wouldn’t hiring a tax preparer or a barber or a gardener be called a scam? 

This is because they want to smear hard-working credit repair business owners who are making a difference for their clients and changing a ton of lives. Successful credit repair companies mean fewer dollars for the banking industry and the bureaus.

Of course, not all credit repair companies are created equal, but legitimate and well-respected businesses do exist. I know, because THOUSANDS of Credit Heroes are using Credit Repair Cloud software to make their businesses a success!

  • Myth #2: You won’t see improvements in your credit score for a very long time.

Change isn’t going to happen overnight, but it happens faster than most people think. Credit Bureaus will generally make marks to credit scores every 30 days, and hard inquiries are reported soon after they occur. In fact, if you check out our Facebook community, you’ll see our Credit Heroes getting FAST deletions constantly when they apply our expert strategies -- and you’ll see for yourself how their clients’ scores rise higher and higher. 

  • Myth #3: Negative items can be added back to your credit report.

Now, you may have heard that credit bureaus can add negative items back on your clients’ credit reports after they’ve been removed because of a dispute. But here’s what you need to know: The only way that can happen following a dispute is if the Bureau finds out that a debt may actually be valid after the fact. But in most cases, items erased from credit reports will never reappear . Again, this is another example of false information.

  • Myth #4: This is something I’ve covered in my podcast because it’s important. There’s a misconception that credit reports are, for the most part, accurate. And that is not true.

Errors are more common than people realize. In fact, nearly 8 out of 10 consumers have errors on their credit reports that they may not even know about! 

Most people make it a habit to review their credit card statements monthly to ensure they recognize all charges. The same should be true for credit reports — because you never know what incorrect and damaging information could be affecting your clients’ credit scores. 

The first section of the report is where it lists all personal information. And so often, that’s where the first errors are. Basically, when lenders check your clients’ credit report to review an application for financial products, like credit cards and loans, and even apartments – If there is any inaccurate information on the credit report, this can jeopardize people’s approval rate and affect the terms they receive, including interest rates. As a Credit Hero, you need to know that you have a few tactics you can use to remove these errors. 

Check out my episode from earlier this month about credit repair hacks and disputing errors to find out exactly what to do. The link is in the show notes. Your clients will love you for it! 

And that’s it! It’s always better to know the facts so you can make the best decisions, right?

AND if you want to get certified in disputing and launch your very own credit repair business in just a couple of weeks, I invite you to join our Credit Hero Challenge!

It’s an amazing program that has helped tons of Credit Heroes get their first clients, get certified in disputing, and gain confidence in knowing they are launching their credit repair business on a solid foundation that allows them to grow and scale FAST! 

We’re starting again soon, so SIGN UP NOW at creditherochallenge.com!

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