The credit repair business can be one of the most rewarding and lucrative businesses that someone could start. It has a relatively low startup cost and a huge market of people that potentially need help with their credit score. However, in 2021 if all you’re going to do is offer the removal of derogatory items from consumer credit reports you won’t be able to compete. So, is credit repair a good business to start? Only if you provide more services and have the right business model.

There are approximately 81,000 credit repair companies in the United States. That includes industry giants like Lexington Law,, and SkyBlue Credit. Then you have smaller but still prominent companies like Ovation, Credit Saint, The Credit Pros, and lots more. And then there are the tens of thousands of sole proprietors that I call solopreneurs out there.

Every single one of these companies, large and small, offers credit repair. The only way to compete in this very crowded market is to offer something in addition to credit repair. The market is ripe for credit repair businesses to give clients more.

Credit Repair, the removal of negative items, only helps 35% of a credit score.

When derogatory items are removed from a credit report it will increase a credit score. But not as much as it could. Getting negative accounts deleted only impacts Payment History which makes up 35% of a credit score.

What if you owned a business that worked on 100% of a client’s credit score?

Credit Repair Business Startup Options

Buy Software and Do Everything Yourself

If you haven’t run into Credit Repair Cloud in your research yet, you will. They spend a huge amount of money on marketing. They, like Dispute Suite, TurboDispute, ScoreCEO, and many others offer software that will help generate dispute letters. You’ll still need merchant services, the ability to pull credit, a website, and a lot more.

But you still can only offer credit repair. You’re still a ‘me too’ company and have nothing to attract potential clients away from other companies. You likely won’t be able to get the attention of real estate agents and mortgage professionals that could refer clients to you.

On top of a lack of services to offer clients and referral partners, you have to do all the work yourself. Marketing, sales, dispute letters, customer support is all on you. Therefore, your income is limited by definition. So, is credit repair a good business to start? Not if you go about this way. It seems like a recipe for failure.

Here's a clue that credit repair business owners that buy software and do everything themselves don't make a lot of money. On the home page of their website, Credit Repair Cloud states that they have 20,300 active users of their software. These users have collected $197,000,000. That averages out to just $9,704 per software user (business owner). That's not income. That's just the money collected from clients!

In comparison, by using the system described below and in the video, we have averaged over $650,000 per year in revenue over the last 10 years. That's a big difference.

Offer Far More Services, Have Staff, and Expand All Over the Country

A better way to go is to be able to offer a full suite of financial and credit-related services for the same or less than other credit repair companies charge for just credit repair.

Then have staff do the administration work like drafting and mailing dispute letters so you can concentrate on growing your credit repair business.

And, also have a built-in compensation model that allows you to expand and scale your business by bringing in others that want to own a credit repair business in their area or offer credit-related services to their clients from another business.

Is Credit Repair a Good Business to Start?

You have to think it through and be honest with yourself. Doing everything yourself in a startup credit repair business and offering nothing more than removing negative items makes no sense in today’s market. However, if you can offer services that set you apart, have help with your clients, and can scale and grow your business, the credit repair business is a great business to be in.

Learn about a credit repair business model that can give you everything you need,
that you can start today, and costs less than $300 to start.

Watch This Video Then Book a Phone Appointment to Talk With Us

Please Note- Appointment Calendar is Set for Eastern Standard Time 

This article which was originally posted in 2021 is updated regularly and was last updated in July 2023.