At the very least someone is paying attention to the practices of credit reporting agencies. Maxine Waters, a member of the U.S. House of Representatives from the 43rd Congressional District (South LA County, CA), has proposed sweeping changes to the way the big 3 credit reporting agencies (Experian, Equifax, Transunion) handle consumer information provided by creditors.
The Fair Credit Reporting Improvement Act of 2014 proposes the following changes which would increase millions of consumer credit scores immediately:
Currently creditors have the legal right to report a derogatory credit item on consumer credit report for 7 years, or 10 years in the case of a bankruptcy. The new bill, if passed, would reduce these time frames to 4 and 7 years respectively.
Paid or settled delinquent debt remains on a credit report as a derogatory account. The bill would eliminate this although it is unclear as to whether the item would be deleted, upgraded to a ‘Paid as Agreed’ status, or other.
When a consumer’s account has late payments their credit report reflects those late payments for the previously mentioned 7 year period. The bill would allow for a consumer to make a certain amount of on-time payments (perhaps 9 consecutive months) and have the previous late payments dropped from the report.
Currently when a consumer disputes an item on their credit report that dispute is reflected on the report preventing them from closing a home loan in some cases. The bill would eliminate reporting of disputes unless the dispute by the consumer is deemed frivolous. Of course, what is deemed frivolous is controlled by the credit bureaus so this may or may not have much positive impact.
The bill would eliminate the credit bureaus from offering a ‘free trial’ program to obtain their credit score and then switching consumers to a ‘paid program’.
Currently consumers have the right to one free credit report per year from each of the 3 credit bureaus but they still have to pay for their scores. The bill would force the bureaus to also provide free credit scores once per year.
Approximately half of all employers run credit checks on applicants. This bill would drastically reduce the number of employers able to do so by categorizing those than can. How this will be done is still unclear.
But Are Positive Changes to the Credit Reporting Agencies Really Coming?
This may be a welcomed bit of news for those in the know of current reporting practices but it isn’t cause to get excited just yet. Business Week stated that the bill is “unlikely to pass”. Business Insider goes further and states that, “the newest credit reporting act doesn’t have a chance”.
When considering starting a credit repair business there are many questions you need to ask and get answered. It’s very important to choose the right credit repair business model to satisfy your needs, goals and perhaps even limitations. I mention limitations because few of us come into a new business totally prepared with every skill set and requirement necessary. In most cases, only after we are in a business do we realize certain elements that are required that we didn’t beforehand.
Download Our Free Questionnaire to Find Out Which is the Right Credit Repair Business Model for You
There are actually 3 different business model types in the credit repair industry. Here are some questions you need to consider before choosing the right one.
What Are Your Goals?
a) Income (initially and long term)
b) Time (time to recuperate investment and hours a week to devote to the business)
What Is Your Skill Set & What Do You Like To Do?
a) Sales & Marketing
How Much Can You Invest?
a) Start up costs
Which Credit Repair Business Model Should You Choose?
Here are those credit repair business model types, what is required, and some of the advantages and disadvantages of each. Choosing the right one for you depends on your goals, your skills, your time, and the money you have to invest.
Starting Your Own Business
1) Federal & state laws and regulations
5) Office (home or other)
8) Sales skills
9) Admin skills
10) Limited income unless you want to expand & hire staff
Conclusion- You must have a substantial amount of time & money to invest. You must also enjoy admin work, as well as understand that your customer base will be limited unless you hire staff.
Buying a Franchise
1) Significant investment $12,000 to $20,000
2) Still need to be concerned with Federal & State laws and regulations
3) Website, training, administrative should all be provided
5) Marketing skills
6) Sales skills
7) Limited income unless you hire sales staff
Conclusion- You must have a substantial amount of time & money to invest. And the franchisor must train you on how to market and sell against the competition
Owning an Independent Agency
1) Low start up cost- less than $300
2) The parent company has satisfied all state & federal requirements
3) Website, marketing materials, training, administrative are all provided
4) Training includes Sales & Marketing
5) The ability to add multiple Agencies provides unlimited income potential along with a residual income component
6) No staff needed
Conclusion- This is the lowest risk option providing potentially the highest reward. It also provides the ability to start making sales and earning income quicker.
For Detailed Information on the topic of Credit Repair Business Model Watch This Video
Looking for an MLM or Network Marketing Opportunity was originally posted in 2014 and was updated January, 2017
If you’re setting out to find an MLM or network marketing opportunity you most likely have experience in the industry. Therefore, you want to find a company with the attributes that are important to you. But at the same time eliminating many of the pitfalls or disadvantages you may have discovered with a previous company.
What if you could find a company that offered all the advantages and attributes of a great MLM opportunity but had eliminated many of the pitfalls and disadvantages? Let’s examine what some of these advantages and disadvantages are.
Advantages of an MLM or Network Marketing Opportunity
Residual and recurring income
Utilizing the efforts of other people (OPE)
Start up/ground floor opportunity
Low start up cost
Selling products that are needed not just desired
Unlimited income potential
Disadvantages of an MLM or Network Marketing Opportunity
Ongoing monthly fees/costs for product
Trying to recruit family and friends
Ground floor opportunities usually come from inexperienced companies
Products that are over priced
Products that have competition at retail stores
Selling a product that is a desire not a need
Having to train and manage people
Carrying inventory so people can try the product
Competition from other MLM’s in the same space
Low initial income
If you have experience in the industry you can perhaps add items to each of the lists above. The point is that choosing the right network marketing opportunity is the key. And, you want to have as many advantages and eliminate as many of the disadvantages as possible.
Here’s a company that I believe has done so and something you may want to take a strong look at. Many “traditional” network marketers will find this company to be very unique. It may be a bit foreign to them and they don’t quite grasp the differences.
Network Marketing Opportunity
Financial Education Services (FES) is a 14 year old company so the infrastructure is solid and stable, and they have tremendous scalability. FES is also debt free. It’s a ground floor opportunity without the typical risk associated with a company that is new.
The flagship product of FES is not a product at all. It’s a service, credit repair. Tens of millions of people are in need of this service and will continue to need credit repair long into the future. Because FES and its credit repair division, United Credit Education Services, have not only a 14 year track record but they have already serviced 250,000 customers. And, they both have an A+ rating with the Better Business Bureau.
They also have other financial services that people need such as a will & trust and identity theft protection. Also a service that helps people pay off their debt faster, on line credit monitoring and more. By offering services and not products they eliminate the issue of buying and maintaining inventory. And, the margins for services are far better than for products because there are no manufacturing and shipping costs. Therefore they can actually offer these services for less than traditional businesses can. This puts their independent Agents in a great position to compete in the marketplace and still have a very lucrative pay plan.
Referrals for Sales from Other Professionals
Something that FES has to offer that perhaps no other company in the MLM or network marketing space has is the ability to get referrals for sales from other professionals. Real estate agents and brokers, mortgage brokers and loan officers, auto salespeople and dealers, banks, solar companies and more. Any professional or company that has a need for their clients to have a certain credit score to close business with them is a potential referral source. Individuals and companies in the industries listed above lose a significant amount of their business because their prospective customers cannot qualify due to credit score. The FES Agent can solve this problem by developing relationships with these people who are happy to refer these “lost” prospects to them.
Eliminating the Negatives of Network Marketing
This company certainly provides all the advantages listed above but here’s how they have eliminated the typical disadvantages of MLM or network marketing.
Ongoing monthly fees/costs for product- Agents for FES can choose, and should choose to purchase their services for a nominal monthly fee. But once they have 5 other Agents or customers on the services theirs is now free. No more monthly fee.
Recruiting everyone that you know- FES promotes recruiting of Agents certainly but trains their Agents to look for serious business-minded entrepreneurs. That may be one’s neighbor but more than likely friends and neighbors become customers or simply referral sources.
Ground floor opportunities usually come from inexperienced companies- This company has a ground floor opportunity but is not a start up by any means. It’s the best of both worlds.
Products that are over-priced- FES services are priced lower than what is found in the current marketplace for an inferior service.
Products that have competition at retail stores- the consumer cannot find the services FES offers at a store. They aren’t going to replace these services while running their errands.
Selling a product that is a desire not a need- The services that FES offers are not just a desire. People need what FES Agents have to sell to be able to refinance or buy a home, car, rent a home or apartment, and more.
Having to train your own team- FES provides the top training in the industry. The concept is to plug your new Agents into the training system and allow the top producers in the company to train your Agents. Also, FES trainings are not hype and not just motivational. Their trainings are filled with content about building a business.
Carrying inventory so people can try the product- no inventory is needed
Competition from other MLM’s in the same space- there is none
Low initial income- this may be the best part. An FES Agent can earn a $100 commission on a credit repair sale (Protection Plan Membership with credit repair), and $12/month residually. What other MLM company has a product or a service where one sale can result in that type of pay off? FES Agents can get themselves in a position on a part-time basis to be earning $4,000 or month or more in 90 days or less. Of course, results are based on the individual Agents efforts and time they put into the business. Click here for details and our income disclosure.
Contact Us About This Network Marketing Opportunity
If you are looking for an MLM or network marketing opportunity but want a company that is different, and has eliminated many of the pitfalls in the industry, FES just might be for you.
Contact Dale Guiducci, Vice President with Financial Education Services and owner of ERA Credit Services, an independent Agent of FES and United Credit Education Services.