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LEARN HOW TO START, RUN, OR GROW YOUR CREDIT REPAIR BUSINESS

How Credit Repair Works

By: Daniel Rosen February 01, 2022

If you’ve ever wondered…

“Does credit repair actually really work?”

This blog is for you!

Maybe you’ve even asked yourself…

“And is it legal?”

The answer to both of those questions is YES, 

Not only is credit repair legal, but it actually works because of the law. That law is called the Fair Credit Reporting Act, and it gives you the right to dispute anything on a credit report. The reason this works is because most credit reports have errors. The credit bureaus make a ton of mistakes which can lower your score.

 

Now you're probably wondering about negative items on your credit report that aren’t mistakes. What about negative items that are accurate and true? Yes, they can! The key here is that even though they are accurate, there is often something inaccurate about how they are being reported.

If you want to repair credit, the number ONE thing you'll need to learn how to do is dispute items on a credit report.

I know it can sound intimidating and the legal terms and processing can get overwhelming, but it’s actually very, very easy.

After a bank error messed up my own credit, I couldn’t afford to hire a credit repair company, so I learned all this myself. I studied and studied and repaired my own credit.

Now, many people get intimidated. When I talk about the dispute process, because even the word dispute, it sounds like there's some kind of confrontation involved. And then I started helping family and friends. And along the way, I began to see how terrible the credit system was and how it hurts people. And I wanted to help other people who were having the same trouble as me.

That’s why I created Credit Repair Cloud and why I’m sharing all these tips to repair credit with you!

Now let's talk about the dispute process. It’s the best way to remove inaccurate or unverifiable information from a credit report. Today, I’m going to break the process down into five easy steps so you can master them and start changing lives!

But first, remember the law I mentioned? It’s super important to the disputing process.

Under the Fair Credit Reporting Act, we, as consumers are given the right to dispute any items that are on our credit report that are inaccurate, incomplete, unverifiable, or untimely. And if they can't be verified, they must be removed. This law is the basis of all credit repair because removing inaccurate or unverifiable information on a credit report is one of the fastest ways to increase your credit score.

1. Get a copy of your credit report
Get a copy of your credit report from each of the three credit bureaus, Equifax, Experian, and TransUnion. Then take some time to carefully look over them to find inaccuracies, redundancies, or unverifiable information that you can dispute.

2. Create your dispute letters
Your first letter can be simple. Let the credit bureau know you’ve received a copy of your credit report and that you found the following items to be errors. Make sure to list each item you’re disputing and exactly why. Included any supporting documentation you might have, along with your driver's license and a utility bill. Close the letter with this…
By the provisions of the Fair Credit Reporting Act, I demand that these items be investigated and removed from my report. It is my understanding that you will recheck these items with the creditor who has posted them. Please remove any information that the creditor cannot verify. I understand that under 15 USC section 1681, a, you must complete this investigation within 30 days of receipt of this letter.

3. Mail your letter ASAP
See the Fair Credit Reporting Act gives the credit bureaus 30 days to investigate a claim. Make sure to set a reminder in your calendar so you know when to follow up with your client to see if they received a response so you can act quickly.

4. Collect the responses
The credit bureaus will send a response in the mail which will indicate if the items that you disputed were corrected or removed from the credit report or that the item was confirmed and will remain.

5. Be persistent
Persistence is key to being successful in credit repair! If the credit bureau has not removed the item from your credit report, you’ll need to send a follow-up letter. Reiterate the items you’re disputing and the reasoning behind them. You might need to dispute the same item several times. Be sure to pay attention to the responses you received because depending on them, you may need to follow up with different types of letters.

And that’s it! Repeat the process until your client’s (or your) score reaches their goal and their life begins to CHANGE!

If mastering those steps sounds scary, know that you’re NOT alone. I’ve created some awesome resources to help you along the way.

I’ve even written a whole book called The Ultimate Guide to Creating a Credit Repair Business. I’ll even give it to you for free! And every week, I share helpful tips for disputing different times and growing your business on my podcast.

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!

 

Be sure to subscribe on your favorite platform below!

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Topics: Podcast

Transcript

Daniel Rosen  00:00

If you are new to credit repair, you're probably wondering, does credit repair really work? And is it legal? And the answer to both of those is, yes, not only is credit repair legal, but it actually works because of the law. That law is called the Fair Credit Reporting Act. And it gives you the right to dispute anything on a credit report. And if they can't prove it, they must remove it. And the reason it works is because most credit reports have errors. They just do the credit bureaus, they make a tonne of mistakes. And those mistakes, they lower your score. Now, you're probably wondering, what about negative items on your credit report that are not mistakes? What about negative items that are accurate and true? What about those, can those be deleted? Well, the answer again, is yes, yes, they can. The key here is that even though they are accurate, there is often something inaccurate about how they are being reported. So how do you remove those negative items from your credit report and make the score go up? Well, today, I'm going to break it down into five easy steps that anyone can do. So you better stick around. So the big question is this, how can we take our passion for helping people with their credit, and turn it into a successful business without taking loans without spending a fortune by bootstrapping it from nothing? So we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets. Okay, before I dive in, if you are new to my podcast, be sure to click to subscribe and turn on notifications so you don't miss a thing. And if you want me to hold you by the hand, as you launch your very own credit repair business, go to credit herochallenge.com, where I will walk you through the proven process that has created millionaires and change 10s of 1000s of lives. That is creditherochallenge.com Oh, and one more thing, and I love this part. Every episode, I am featuring one of our credit heroes inside our Credit Repair Cloud Facebook community so that you can see firsthand what real people are doing as they launch and grow their business. And today's spotlight is on Gabriel Barreiro who wrote this in our community. My name is Gabriel Barreiro, I welcome you all to Modesto credit solutions. I got my little office set up last night, I passed merchant inspection today, I got my business licence. I filed a DBA yesterday, and next is to insure and get bonded, I got five clients that are ready to work with me on their credit in exchange for a testimonial. I just wanted to say thank you to the whole Credit Repair Cloud Community. I have fully dedicated to work from home this year to generate revenue and beyond. Thank you. Gabrielle, that is awesome. I just want to say congratulations on this new journey. I'm so excited that you have your first clients lined up and just don't stop. Okay, keep going. And you will succeed and know that we are all rooting for you. And by we I don't just mean me and our team here at Credit Repair Cloud. No, I mean, our amazing community of credit heroes that has just past 26,000 members. And the whole point of our community is to inspire and to help each other up the mountain. And when we do that, there's nothing we can't accomplish together.  Okay, let's get into this. If you want to repair credit, the number one thing you'll need to learn how to do is dispute items on a credit report whether they are accurate or inaccurate. Now, many people get intimidated when I talk about the dispute process. Because even the word dispute it sounds like there's some kind of confrontation involved. Plus, when you start to think about the legal terms or processes that you might need to know it can get overwhelming really fast, but it's not overwhelming. It's actually very, very easy to see. I learned about this myself. I learned about it when my own credit got messed up by a bank error and that error caused me to almost lose my house and nearly go bankrupt. And back then, I was so broke, I couldn't afford to hire a credit repair company. So I set out to learn everything I could about credit repair. And I did, I studied, and I studied, and I repaired my own credit. And then I started helping family and friends. And along the way, I began to see how terrible the credit system was, and how it hurts people. And I wanted to help other people who were having the same trouble as me. So that's why I created my software, which is Credit Repair Cloud, and that now powers most of the credit repair businesses in America. So that's my story. And that's how I know about this stuff. So let's talk about the dispute process. Now the best way to remove inaccurate or unverifiable information from a credit report is with the dispute process, and the basics of disputing, they're actually really, really simple. So today, I'm going to break it down into five easy steps, and I've got them here on the board. And after you learn these five steps, you are going to be a pro at all basic disputing. And here's why this is important under the law, under the Fair Credit Reporting Act, we as consumers are given the right to dispute any items that are on our credit report that are inaccurate, incomplete or unverifiable or untimely. And if they can't be verified, they must be removed. And this is the basis of that law, and the basis of all credit repair. Removing inaccurate or unverifiable information on a credit report is one of the fastest ways to increase your credit score, and finally be able to get into that home or car that you were previously denied for 79% of Americans, that's nearly eight out of 10 people are walking around with errors on their credit reports. And those errors are costing them a lot of money every month in inflated interest rates. So learning how to dispute it can really change your life. And if you turn it into a business, you can start to change other people's lives.  So here's what you need to know. Here are the five steps. Step number one, get your credit reports, get a copy of your credit report from each of the three credit bureaus, Equifax, Experian, and TransUnion. And then take some time to carefully look over them to find inaccuracies, redundancies, or unverifiable information that you can dispute. Step number two, create your dispute letters. Now the first letter, it can be as simple as this. Dear credit bureau, I received a copy of my credit report, and I found the following items to be errors. And then you'll list each item that you're disputing and the reasons why. And be sure to include all supporting documentation if you have any, and include copies of your driver's licence and a utility bill, and then close the letter with this by the provisions of the Fair Credit Reporting Act. I demand that these items be investigated and removed from my report. It is my understanding that you will recheck these items with the creditor who has posted them, please remove any information that the creditor cannot verify. I understand that under 15 USC Section 1681. A, you must complete this investigation within 30 days of receipt of this letter. And then step three, send the letters as soon as possible. See the Fair Credit Reporting Act. It gives the credit bureaus 30 days to investigate a claim. And if you're doing this for a client, set a reminder on your calendar so you know when to follow up with the client to see if they have received a response so that you can act on it quickly. And step number four, collect the responses. See the credit bureaus, they are going to respond a few weeks later by US Mail and the response that they send, it will indicate that the items that you disputed were corrected or removed from the credit report or that the item was confirmed and will remain and step number five, follow up and be persistent. If a bureau has not removed the item from from your credit report. Next, you want to send a follow up letter, reiterating the dispute and the reasoning behind it. Now remember, you may have to dispute the same item several times. And if you do, this is not unusual. Now depending on their response, you may need to follow up with other types of letters to the credit bureaus, or even to the creditors themselves. Now, if you want a great resource, I have a book that I give away for free. It's called The Ultimate Guide to Creating a Credit Repair Business. You can buy it for $20 on Amazon, but I will actually give it to you for free, just follow my link in the comments. I also have podcast episodes about all the common things that people dispute. And I've recorded episodes on deleting bankruptcies charge offs, collections, student loans, inquiries, personal information, and basically everything you need to know about credit repair, or how to grow a credit repair business. If you want to learn something about credit repair, it's right here in my channel. Just remember, patience and persistence are what it takes to be successful at credit repair. And nobody knows that better than our credit heroes here at Credit Repair Cloud, our software powers 1000s of credit repair companies. And our customers have helped millions of people to clean their credit by improving over 10 million credit report items and collecting for them over $170 million in revenue. With the help of Credit Repair Cloud software, our credit heroes, they know how to dispute and they can do it fast. And if you want me to hold you by the hand, as you launch your very own credit repair business, then you got to join the next Credit Hero Challenge. You'll get live training and mentorship, you'll get certified in disputing and you'll learn the process that is created millionaires and it costs less than you'll spend to take your family to McDonald's for dinner tonight. We start the next challenge in just a couple days. So you want to click the link in the video description or go to creditherochallenge.com right now. And if you're finding value in my podcast, be sure to click below to subscribe so you don't miss any of the secrets that I share each week here on the Credit Repair Business Secrets podcast. And if you're feeling kind and want to help me out, leave a review, give me a thumbs up. This is a new podcast that can use all the help I can get. And be sure to leave a comment or ask a question because I read each and every one of them. And I will see you in the next episode. And until then be a credit hero and keep changing lives.  Want more credit repair business secrets. Then get a copy of my book The Ultimate Guide to starting a credit repair business. Get it free at reditrepaircloud.com/free book Inside this book, you'll find my top 35 secrets to removing items from credit reports and turning that into an amazing business that helps people change lives and makes you a great living in the process. Get it free at creditrepaircloud.com/free book

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