Some car owners know enough to fix a lot of things on their own, but when that check engine light comes on, most of us would rather take our vehicle in to see an expert rather than diagnose things on our own.
That’s sort of how credit repair works.
While we might know something is wrong with our credit score, and even the basics of how credit repair works, but paying an expert makes for a smoother, and more precise process.
How Does Credit Repair Work?
When looking to repair credit, what can a consumer do on their own to dispute negative items and improve their credit? Quite a lot, actually. Any (adult) person without credit repair training can:
- Look at their current credit score month-to-month with the purchase of credit monitoring service
- Send effective dispute letters to the credit bureaus and follow up with them month-after-month
- Stop bad habits of overspending and overborrowing and create better habits of staying with their limits
- Research and understand how credit works and how to work credit to their benefit
There are many things a person can do on their own to improve their credit and fight the credit bureaus. Yet, most people are not willing to put in the work or use their time to become an expert in credit when they are trying to keep hundreds of other plates spinning in their lives.
That’s how credit repair companies go to work for you.
So, How do Credit Repair Companies Work?
Firstly, a credit repair company consistently follows up with both the client and the credit bureaus.
Secondly, a credit repair company has a vested interest in increasing their client’s credit score and will not be discouraged or take pushback from the bureaus personally.
Finally, (this may be the most important thing a credit repair company does) credit repair companies accumulate hours and hours of experience and continue to develop a level of expertise in credit repair that only someone who has dedicated themselves to credit repair can attain. Credit experts know the intricacies of how credit repair works better than consumers ever will.
What Does a Credit Repair Company Do?
Research the laws and best practices
The top credit repair business owners dedicate themselves to hours of training and professional development before they even start a credit repair business. In fact, many successful credit repair business owners start out in an adjacent field such as mortgages or real estate and focused on credit repair after it became more profitable than their main gig.
Researching and understanding the laws and best practices of credit repair in their state or area is a critical function of every credit repair company. This takes a lot of time and dedication that most consumers are not willing to offer. Yet, credit repair companies can easily acquire proper training and education. In fact, you can start a credit repair company from home fairly easily with the right training.
Consistently and systematically dispute negative items month after month
A credit repair company starts by reading a credit report and discovering the negative items, then gets to work at disputing and removing the negative marks to increase the credit score. A credit repair company will:
- Write effective dispute letters
- Understand how to negotiate with creditors on their clients’ behalf
- Respond to the bureaus quickly and efficiently
As this Entrepreneur article says, "Don't Just Start a Business, Solve a Problem."
Engage with the financial experts in your community
Credit repair companies work by making money through referrals from financial affiliates. This means that a credit repair company develops great relationships with mortgage brokers, real estate agents, loan officers, and other financially-associated businesses in the community. What a credit repair company does for a client extends beyond the process of credit repair. They are able to help clients find reputable sources for future needs, such as buying a home or getting a loan for a car once their credit is improved.
Not only can credit repair companies be a great referral source to reputable local financial companies, they build relationships to more easily share important information with local financial affiliates about how to maintain good credit. This shared knowledge creates better credit habits throughout communities.
Draw upon hundreds of hours of experience
Credit repair business owners gain hours of experience over hundreds of clients allowing them to see patterns and better help clients. Even when starting out with no credit repair experience, a credit repair business owner who signs up for Credit Repair Cloud’s software gains access to a wealth of knowledge from fellow users in the private online community and the support of the team of credit repair experts.
Understanding credit repair is simple, but there will always be situations where it is good to consult with fellow credit repair business owners to get the best result for consumers. Many credit repair business owners continue to train and learn the best practices for the credit repair industry as they grow.
Educate clients on other aspects of financial well-being and teach better credit habits
So what does a credit repair company do to ensure that their clients do not end up as repeat clients? They educate clients on how to create better credit habits, how the bureaus work, and changes to make tor their financial lives to maintain excellent credit.
A credit repair company can tell consumers things like:
- Only use up to 30% of any line of credit
- Make a plan to pay down existing credit that is over 30% of the credit available
- Create calendar reminders or auto-pay online to pay existing bills on time
- Do not apply for more credit
Aside from accumulating hours and hours of experience, there are many things consumers can do on their own, but most are not willing (or able) to invest the necessary time and energy It makes more sense for consumers to spend a small monthly amount for the peace of mind as the negative items on their credit report are being disputed month after month by a trusted company and resolve with a credit score increase.
Know how to grow a credit repair business
Unlike becoming an expert mechanic, building a successful credit repair company only takes a computer, a phone, and a plan to help individuals improve their credit. You can learn all the basics to start a credit repair business that takes off by reading this book by credit repair expert Daniel Rosen.
Click here to download your copy of Recipe for a Scalable Credit Repair Business now!
Want more posts like this?
Be sure to subscribe on your favorite platform below!
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
Be the first to know!
Get instant notifications for new articles
.png)
