Something often overlooked when doing research to start a business is the size of the market. I believe that’s especially true when people are researching how to start a credit repair business. We might assume that the market is huge because all the people we know or hear about that have poor credit. But let’s take a look at some specific data about the size of the credit repair market. And whether it’s a good idea to become a credit repair man or credit repair woman.
What the Statistics on Credit Scores Tells Us
To analyze the size of the credit repair market over the last few years, let’s start with some data from 2016. FoxBusiness.com wrote an article entitled, "How Many Americans Have Bad Credit?" They used data from Experian, one of the big 3 credit reporting agencies. Experian estimated at the time that 30% of Americans have bad or poor credit. Their findings were that there are about 220 million scoreable people (people with a credit score) and 68 million of them have bad or poor scores (lower than 601). Which is how they got to that 30% estimate. Note that this does not include people that have no credit score at all.
Now let’s look at some data from late 2019. In a PRNewsWire.com article, a survey conducted on behalf of ScoreSense ® was quoted stating that, “More than half (53%) of all Americans have been rejected for a credit card, loan, or car due to poor credit.” That’s more than half of all the people in this country. There are 209 million people over the age of 18 in the U.S. 53% of that is nearly 111 million Americans.
Jumping forward to 2021 you might expect that things may have gotten even worse due to the pandemic. And you’d be right. Here are some statistics in a Review42.com article.
11.1% of Americans have a FICO score below 550.
37% of subprime scores are represented by millennials. A subprime score is typically a credit score below 670.
34.8% of all Americans have a subprime credit score.
17% of Americans have made late payments on either their credit cards, loans, or mortgage payments in the last 2 years.
Approximately 20% of Americans are delinquent on some debt for more than 30 days.
Poor or Bad Credit Scores Are Preventing Home Ownership
These are all shocking numbers. But maybe the most shocking came in an article on NerdWallet from January of 2021. They had contracted with Harris Poll to conduct a survey of 2,000 adults. 11% of these people said they plan on buying a home in the next 12 months. That translates into 28 million Americans that want to buy a home. However, 32% of these people said they had not moved forward in the buying process because of their credit score. 32% of 28 million people represents almost 9 million people that want to buy a home but that cannot, due to credit score.
Should You Get Into the Credit Repair Business? Maybe...
So, is there a market for credit repair? Undoubtedly yes. Should people consider becoming a credit repair man or a credit repair woman? Maybe. Why the hesitation? Why not say, “absolutely”? Because in order to be successful in business you don’t just need a big market. You also need the right business model.
If you try to buy credit repair software and do everything on your own, you are taking the longest, hardest, and most expensive road to getting your credit repair business started. You will then have to operate your business and do it all yourself, therefore, limiting how much business you can do. And, you’ll have nothing that distinguishes you from the 81,000 other credit repair companies out there. Why? Because all you'll be doing is credit repair just like everyone else.
If you want to become a credit repair man or credit repair woman you should look at an easier, quicker, and less expensive business model. This credit repair business model will give you staff that will do all the administrative work for you. Such as pulling credit drafting dispute letters and customer service. In that way, you go grow and expand your business. And it will give you the time to focus on your primary business or a job as you build your credit repair business. Lastly, you'll have many other tools and services to help people increase their credit scores.
A Better Way to Becoming a Super Hero
To learn about a better way to start a credit repair business visit Credit Repair Business Opportunity. There you will find a 30-minute detailed video. After you watch that video, if you like what you see, you can book a phone appointment. During that phone call, you'll get all your questions answered and be able to determine if this is the right fit for you.