7 Critical Credit Repair Tips You Can’t Afford to Ignore

Hey Credit Heroes. I love it when people want to get into credit repair, either fixing their own or helping other people deal with their issues. Or both. I have personally seen how credit repair can change lives, but it isn't all easy. No matter where you are on your credit repair journey, here are the top seven things you need to know about credit repair. So you better stick around. My name is Daniel Rosen and welcome to Credit Repair Business secrets. In the 20 years since releasing my first credit repair software, I have helped thousands of businesses scale from the ground up. And I've experienced many of the same challenges that credit heroes face. And I learned proven ways to overcome them and succeed. Credit repair is a vast sea of information that requires knowledge and luck and timing to navigate. It takes passion mixed with grit and perseverance and a little bit of guts. It requires knowing your rights, but also the instincts of what to dispute and when to push back against stubborn credit bureaus. Here's why this is important. A lot of people don't even know that you can repair credit. They might never know that there are errors on their credit report and they just suffer in silence. And I can't blame them. The credit system is confusing and the bureaus do this on purpose. And credit still isn't taught in schools or widely understood by parents. So how are you supposed to learn about it? Huh? Well, if you're here, then you're on the right path. Credit scores have a huge impact on your life and you gotta understand them and stand up for your rights. When it comes to your credit, errors and mistakes happen, but you have the right to dispute them and ensure that your credit reflects the truth, whether it's for yourself or someone else. Your work leads to better opportunities, less financial stress and a brighter future. Here's what you need to know. Armed with over 20 years of experience in the credit repair industry, I'm sharing with you the top seven things that you need to know about credit repair. Number one the Fair Credit Reporting act the first thing you should know about credit repair is that a lot of it is governed by the Fair Credit Reporting Act. The FCRA is a federal law that, among other things, provides you the right to access your credit report and the right to dispute inaccurate information on those reports. It also requires the credit bureaus to investigate and correct errors within 30 days of notification, and it stipulates in exactly how long negative items can appear on your credit report. 2. Review and correct personal information. This includes past addresses, past employers, and even misspellings of your name. This excess personal information can be connected to negative accounts that you want to dispute and get removed. Take some time to look at your credit report, find those errors and then send a personal information update request letter to the credit bureau. And you can do this anytime before or even during the actual dispute process. The great thing about these personal information update requests is that you can send them whenever you want and how often you want until the information is removed. Now, if you don't have access to a personal information update letter, I'm going to put a link to one that you can download down there in the show. Description Number 3 Sudden drop in credit score the third thing you should know about credit repair is that you shouldn't necessarily panic if you see a sudden drop in your credit score. Believe me, I know. Sometimes a credit score can drop by 25, 50 or even 100 points seemingly overnight and for no reason at all. It's enough to cause you to break out in a cold sweat and more often than not there is a simple explanation and and the problem can be easily fixed. The fact is that changes to any one of the factors that determine your credit score, be it your payment history, credit utilization, length of credit history, new credit and credit mix, can cause credit scores to drop. If you review your reports as soon as you can identify the cause and take simple actions to resolve the issue, you can bounce back and and avoid any serious long term effects. For more information on the potential causes of sudden drops and how you can fix them, take a look at this previous podcast. Number four Specialty Reporting Agencies There are specialty credit reporting agencies out there that are feeding information to the big bureaus and that information causes certain accounts to appear on your credit report. So I'm sure you've all heard of Equifax, Experian and TransUnion, but have you also heard of LexisNexis or SageStream or Ars Innovis or CoreLogic? There's also a specialty credit reporting agency called MIB Incorporated that feeds information regarding medical collections. So if you have a medical collection on your credit report, you shouldn't just be sending your dispute letters to Equifax, Experian and TransUnion. But but you should also be involving MIB to improve your chances of getting that account removed. NCTUE is a specialty credit reporting agency that deals with utility and telecommunication accounts. So if you have a gas, water or electric bill or your cell phone bill that went into collections or that got charged off and is on your credit report, reach out to NCTUE and as well as the main credit bureaus number five. Removing debt doesn't mean you don't owe, it just means that that collections account is no longer negatively affecting your credit, but you are still in debt to that collections agency and you probably should reach out to them and potentially settle that debt. Conversely, another big misconception is that paying a collection account does not guarantee that the account will be removed from your credit report unless you work things out with them and have a pay for deletion agreement. 6. Credit repair takes time Credit repair is a journey, not a sprint. One of the biggest misconceptions out there is that credit can be fixed overnight. But the reality is improving your credit score takes time, persistence and a solid plan. The credit bureaus have up to 30 to 45 days to respond to disputes and depending on your situation, it could take several months to see significant improvements. The process can feel slow, but each action you take is one step closer to your goal of a stronger credit score. The key to success in credit repair is all about pressure and persistence. The ups and downs can be frustrating, but if you stay committed and continue to work on the factors within your control, your credit will start to improve. Remember, anything worth having takes time and a healthy credit score is no different. So don't give up. Seven More than just removing negative items, probably the best way to approach credit repair is to avoid having credit problems in the first place by controlling your spending and paying your bills on time. But we all know that life happens and sometimes things are just out of your control. Just do the best that you can and try for consistency and your score will improve. It's also important to maintain a good credit mix. This involves having both revolving credit like credit cards and installment loans like mortgages or auto loans. And don't max out your cards. Keep your credit utilization low, ideally below 30% of your credit limits, and that will boost your score as well. And if you want six months of credit repair cloud software for free, plus access to our advanced disputing and business courses, go to creditrepaircloud.com freetraining and sign up for my masterclass. Here's my final point. Credit repair requires patience. Simple credit errors may be corrected within 30 days, while more complex issues can take several months to resolve. So be patient because building positive credit is a long term process and I'll end by saying for more must know tips, check out my podcast about credit score 101 and if you'd like to improve your credit score and discover how to earn extra income repairing credit for others, check out my brand new Start Repairing Credit challenge. So sign up right now@startrepairingcredit.com and keep changing lives.