How Credit Repair Works

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!