There are 5 common mistakes that cause credit disputes to fail, and on this week's Podcast, I explain how you can avoid them and get better results!
In the 20 years since releasing my first credit repair software, I've helped thousands of businesses to build from the ground up. During that time, I faced many of the same challenges that you're facing, but over the years, I've discovered proven ways to overcome them, to grow, and succeed.
Credit Repair is a results-based business. If you want to be successful, you need to win disputes and get results for your clients.
If the facts are on your side and the law is on your side, you have the tools you need to win disputes. But just because you have the tools doesn't mean it's going to be an easy "Round One" knockout. No. It's going to be a fight.
Because the Banks and Bureaus are rich and powerful, and they play dirty. They'll use any excuse to stall or deny your disputes.
If you want to beat them, you can't help them by making mistakes!
HOW THIS RELATES TO US
Disputes can fail for many reasons. Some are avoidable, and some aren't.
No matter how well-written your disputes are, early round letters tend to receive automatic responses calling your claims "frivolous" or your paperwork "not legible" or "suspicious."
These annoying stall tactics are designed to confuse and mislead you, so you'll give up.
Why do they want you to give up? Because then they won't have to investigate, saving them MONEY. That's why they stall, and that's why they deny.
In most cases, you did nothing wrong, but you cannot give the bureaus an excuse to stall the process or deny your claims. If you want to win and get results for your clients, there are specific mistakes you have to avoid.
THE THING TO REMEMBER
Winning your disputes will take patience, pressure, and persistence.
We call them "Round One" letters for a reason. The fight has just begun.
Whether you make a mistake or you receive an annoying stall letter, the only way a dispute really fails is when you give up!
WHY THIS IS IMPORTANT
You can put your disputes in the best possible position to succeed if you avoid these five mistakes:
MISTAKE #1: DISPUTING THE WRONG THINGS
The first mistake people make when repairing credit is disputing something they can't or shouldn't dispute.
In these cases, they try to dispute accurate information, or when that fails, they try to remove everything from their reports.
You shouldn't try to remove accurate information from credit reports without finding something inaccurate about how they are being reported.
In some circumstances, you can request their removal by sending a Goodwill Deletion Letter that you send directly to the creditor. But most accurate items, if there's nothing inaccurate about how they're being reported, will probably stay on the report for 7 to 10 years.
You also shouldn't try to remove everything from your report because, believe it or not, some negative items are actually helping your credit score.
Your Credit History is the most important factor in determining your credit score. If you delete a negative account that happens to be one of your oldest accounts, that loss of history can be far worse than what you gain from removing the negative item.
So by trying to fix the problem, you make it worse.
Now, if you have a lot of credit history spread across multiple accounts, you can strategize item by item, account by account and decide what can and should be removed. That way, you don't dispute the wrong things.
MISTAKE #2: DISPUTES CONTAIN INACCURATE OR INCOMPLETE INFORMATION
These disputes fail because they can't be investigated by the bureaus.
In some cases, disputes contain inaccurate information, like the wrong dates, wrong account numbers, or wrong creditors' names.
In other cases, basic dispute information is incomplete – like not including the actual reason for your dispute.
Yes, these are embarrassing mistakes to make. But they're very easy to fix.
Double and triple-check your disputes before you mail them, and when in doubt, add more details that back up your claims.
MISTAKE #3: NOT PROVIDING ENOUGH EVIDENCE
The more evidence you provide to support your dispute, the better. If you don't provide enough documentation, or none at all, there's a good chance the bureaus will deny the dispute, stall, or ask for more information.
So collect as much evidence as possible. This can be bank statements, a letter from a creditor, a police report, or anything else that backs your claim.
Make copies of these relevant documents and attach them to your dispute letters. Always keep the originals.
Each piece of evidence increases your chances of a successful dispute.
Also, be sure to include a photo ID and proof of address with your Round One letters to the bureaus. If you forget to do this, you're going to get a stall letter.
MISTAKE #4: DISPUTING ONLINE
Some people are in too big a hurry. They rush to file quick disputes and give up all their legal rights.
They go to the Credit Bureau websites and sign up for their online dispute process, thinking it's a fast and convenient way to repair credit.
But they don't realize the Terms and Service agreement states if you file disputes with them online, you are giving up certain rights and legal protections, limiting your ability to take them to court.
I don't want to state the obvious, but you never ever want to give up your rights, especially to the big banks and credit bureaus.
By disputing the proven, standard way through the mail, you have more legal protections. So if your rights are violated, you can more easily go to court, and in some cases, you can even win a cash settlement. Yes, that's right. CASH!
MISTAKE #5: NOT FOLLOWING UP
Once you've filed a dispute, prepare to follow up and make sure that it's being properly investigated. The bureaus are legally obligated to respond within 30 days of receiving your letter, but they often take longer.
If they do send you stall letters claiming that your dispute is "frivolous" or the documentation is "not legible." It's time to send a "Reinvestigation" letter restating the dispute details and your legal justification for the dispute.
If you don't hear back at all within 40 days, it's time to send a "No Response" letter reminding them of their legal obligation to respond.
At that point, if they still don't take action, it's time to get serious and send a "Bureau Warning" letter. In that letter, you warn them that you're considering filing complaints with the CFPB, the FTC, and your state attorney general and further legal action.
With these dispute follow-ups, the key to winning is patience, persistence, and continually applying pressure.
If you don't have the Round One, Reinvestigation, or Bureau Warning Letters, you can download them HERE for FREE.
I'll put the link in the show notes.
There's also one tool that can help you avoid making mistakes and speed up the dispute process: Credit Repair Software!
WHAT YOU NEED TO KNOW
Credit Repair Cloud can import and audit credit reports with just one click and help you learn what to dispute. It can help you onboard clients fast, allowing them to input their information and ensure accuracy.
It can guide you to exactly which letter to send, help organize, customize, and track each dispute. It can manage client progress, automate updates, and remind you when to follow up.
And if you want 6 months of Credit Repair Cloud software for free, plus access to additional business courses, sign up for our Masterclass!
MY FINAL POINT
Disputes fail for so many reasons, some are avoidable, and some aren't. Mistakes are going to happen. That's why pencils have erasers. But even tiny mistakes in the dispute process will slow your client's financial recovery.
If you eliminate mistakes from your dispute process, you'll get faster results for your clients. You'll change more lives and grow your credit repair business!
I'LL END BY SAYING
If you still need a Credit Repair Cloud account, check it out. It's the software that most Credit Repair businesses in America run on. Sign up here for a Free Trial!
And if you'd like to change lives and grow your Credit Repair business, check out our Credit Hero Challenge!
It's an amazing program, and we've got another challenge starting in a few days, so grab your spot right now at CreditHeroChallenge.com!
So take care, Credit Hero!
And Keep Changing Lives!