For several years I have been blogging and producing videos about how to, and what you need to start a credit repair business. If done correctly the credit repair business can be an incredibly lucrative and rewarding home-based business. However, it's all about the business model. If someone chooses the wrong business model it can fail before it starts.
My wife and I started our own credit repair business in 2012. Today that business produces nearly $1 million in annual revenue. We have worked from home the entire time. We travel frequently and sometimes work while traveling. But most often we have someone on the team run the business for us and shut down completely.
The revenue, income, and time freedom we enjoy are all a result of the business model we chose. I cannot stress this enough.
It's All About The Business Model
You can start a credit repair business all on your own and be a solopreneur. But you will never generate the revenue, income, and time freedom you perhaps desire. Instead, why not develop leverage in your business and be a true entrepreneur as an independent agent?
What Are You Trying to Accomplish?
I believe that in order to start a successful credit repair business you must look at what you want that business to accomplish for you before you start it. You must also think about what you need for a startup credit repair business. What are all the components of a credit repair business? Then decide how you're going to implement them.
The chart below is a list of items you must consider before you begin any work on starting your business. As you will see there is a lot to think about. You can easily compare starting a credit repair business on your own versus joining our company as an independent credit repair agency owner.
Please note that an independent agency is a business that you own. You can sell that business or will it to your heirs just like starting your own business by yourself. As you will see, the advantages are many.
If you want to explore more about owning an independent credit repair agency you'll see how to do that at the bottom of the chart.
Start Your Own Business
Own an Independent Agency
Surety Bonds
Most states require credit repair companies to purchase a surety bond to protect consumers.
On Your Own
The cost can range between 1% to 15% of the bond amount depending on many factors including your credit score ironically. Click here to learn more about surety bond amounts by state and costs.
As an Independent Agent
No surety bond is required as you will represent a company that performs the service delivery for your clients.
Business Territory
On Your Own
You will only be able to do business within your state unless you purchase a surety bond and/or are registered in other states as well.
As an Independent Agent
You can do operate in all 50 states and U.S. territories (Puerto Rico, U.S. Virgin Islands, etc.)
On Your Own
You will need to have software to generate dispute letters. Cost and benefits will vary. Training is required to operate the software.
Read about credit repair business software
Read about a good software choice
As an Independent Agent
No credit repair software is required as you will have a dedicated staff that generates dispute letters for your clients.
Business Website
On Your Own
You'll need to build a website yourself or pay someone to do it for you. Costs will vary depending on the size of the site and technology incorporated. Keep in mind that state and federal laws restrict what can be legally stated on a website.
As an Independent Agent
2 websites are provided for you (Customers & Business Development) at no cost and are complete with videos describing your services offering. You can brand yourself or a company name.
Website for Customers
Website for Business Development
Online Marketing Tools for Lead Generation
On Your Own
If you're going to use a sales funnel or lead capture pages you'll need to purchase these or develop them yourself.
As an Independent Agent
You'll be provided free individually branded lead capture pages to use on social media or other online locations.
Merchant Services for Credit and Debit Cards
On Your Own
You will need to find a merchant services company that will work with a credit repair company which can be difficult. There will be a monthly fee and fees associated with each transaction.
As an Independent Agent
Merchant Services are provided at no charge.
Credit Reports for Your Clients
On Your Own
It is very difficult to find a credit report broker willing to work with a credit repair company. Most small credit repair companies ask the client to sign up for a service such as IdentityIQ or Smart Credit and then give them the login credentials. Note- this is an added fee to the client.
As an Independent Agent
Credit reports from all 3 credit reporting agencies can be generated by the client at no charge to you or the client.
Federal and state law compliant marketing materials (brochures, flyers, folders, business cards)
On Your Own
You'll have to research state and federal law requirements and produce these. Or have them produced for you.
As an Independent Agent
You can order customized marketing materials that have already been produced and are compliant in all 50 states.
Capital Required to Start Your Business
On Your Own
Estimated between $2,500 and $10,000
As an Independent Agent
Under $300 and then just $99/mo.
Time Required to Start Your Business
On Your Own
One month to several months dependent upon your commitment to a job or other business interests.
As an Independent Agent
Start your business today! Start earning profit today!
Credit Repair Training
On Your Own
You will need to take an online or seminar course. Costs will vary.
As an Independent Agent
Training on federal credit repair law, the credit repair process, credit repair business training provided at no cost through flexible online credit repair classes
On Your Own
There doesn't appear to be any training on marketing and growing a successful credit repair business except for the Credit Repair Business Coaching program that we offer to all credit repair business owners.
As an Independent Agent
Credit repair training through one-on-one coaching, online video training, and live weekly online training is provided at no cost. This training includes how to generate referral business from professionals in credit related industries such as real estate and mortgage, and much more.
Online Reporting for Your Clients
On Your Own
If you want to give your clients online access to their account and specifically updates regarding the progress of the service you are providing, you'll have to develop that into your website.
As an Independent Agent
Clients have secure online client access to their accounts and receive updates as to the progress of their service. This is provided at no charge to you or to the client.
Additional Client Services
If a credit repair company only offers the removal of derogatory items from credit reports (affects Payment History only which is 35% of an overall credit score) there is nothing differentiating them from every other company. Providing additional services is important to compete in the crowded credit repair market.
On Your Own
The most efficient way to provide additional services is to contract with companies as an affiliate.
As an Independent Agent
You'll have additional services to increase, monitor, and protect a client's credit score, as well as other financial services. See the details of other services offered.
Customer Support After the Sale
On Your Own
You must be available to answer client questions after the sale is made or hire and train staff to do handle these calls.
As an Independent Agent
A highly-trained staff is available Monday through Friday from 9 a.m. to 5:30 p.m. Eastern time.
Referral Source Reporting
On Your Own
Keeping referral sources, such as real estate & mortgage professionals, up to date on the progress of the clients that they refer to you can be a challenge. You'll need to develop a system for this.
As an Independent Agent
Referral sources can receive updates directly from their clients as the client has online reporting tools and will receive updates directly from the credit bureaus.
Business Growth Potential
On Your Own
If you plan on doing all the credit repair admin work, marketing, sales, and all other aspects of the business, your business growth will be limited to how many hours you can devote to your credit repair business. If you hire staff to assist you, it will reduce your profits generated from clients.
As an Independent Agent
As an independent agent, your growth is unlimited for 2 reasons. The company and staff provide all work and materials except for marketing & sales which frees up your time to grow your business. And you, at no additional cost, can bring on an unlimited number of other independent agents to expand your business throughout the country. As the number of agents grows so does the revenue & profit from your business.
Experience Required
On Your Own
Because all knowledge of credit repair and building a business must be acquired at a cost, it is beneficial that you have as much previous business experience as possible.
As an Independent Agent
No previous credit repair or business experience is necessary. When we started our credit repair business in 2012 neither of us had any credit repair experience and limited experience as a business owner.
To Learn the Details of Our Independent Agent Business Model
Visit Credit Repair Business Opportunity
This article which was originally posted in 2020 is updated regularly and was last updated in July 2023.