Credit Repair: How does it Work?

Credit repair, simply put, is defined as the process of improvement of an individual’s credit report through necessary removals or adjustments of negative credit listings. These adjustments help improve credit scores, which is the number creditors check when someone applies for a loan.

An individual with a higher credit score is more likely to get better deals on their payments plans and has a better chance of getting a loan at a lower interest rate.

If you’re looking to start a credit repair business to help clients improve their credit scores, here is a little guide that might help you understand how it works:

Credit Reports

The process starts when your client orders a credit report from each of the three credit reporting bureaus: Equifax, Experian and TransUnion. The items on each credit report are to be analyzed thoroughly, and any negative items that are to be taken up for dispute must be identified.

More than one in five consumers have a ‘potentially material error’ in their credit reports, which wrongly lowers their credit scores.

The Fair Credit Reporting Act allows any item on a credit report to be disputed against. If the item cannot be verified, it has to be removed from the credit report. Credit repair is only possible because of this law which is the basis of the entire process.

Dispute

Based on the negative items identified, dispute letters must be created. This can be done automatically using the Credit Money Machine Pro Plus.

Once a dispute letter is sent, it takes about thirty days for the credit bureau to come to a conclusion. On their end, the process includes asking creditors for proof and reviewing it before they make a decision. Credit repair companies constantly follow up on the bureaus to make sure the case is still being acted upon and not neglected.

Meanwhile, as a credit repair professional, you must also reach out to your clients’ creditors to negotiate and verify that their records are accurate.

Conclusion

The bureau sends a letter explaining the credit items that have been adjusted or verified. If verified, you can ask for proof of verification including any documents and signatures.

In case of corrections and adjustments, the negative items are eliminated; this raises the client’s credit score.

Credit Repair Software

The Credit Money Machine Pro Plus is an all in one credit repair software with financial, ecommerce and marketing capabilities for all credit repair professionals. It is a complete business solution which will help you maximize your sales, minimize your costs and organize your entire company successfully.

To learn more about the incredible Credit Money Machine Pro Plus, watch this video and request for a live demo on our website.