If you've spent any time at all researching how to start a credit repair business from home, you might be discouraged. The reason being is that it seems so overwhelming. There's a lot to get done. You need to go out and find several separate pieces and put them all together yourself. Don't you wish there was one solution that has everything you need to get your credit repair business started? This guide to starting a credit repair business from home is going to help.
As you will see below, I'm going to give you 2 ways to go about a startup credit repair business from home and let you choose which is best for you. The first option is for those who have more capital to invest and more time to get their business set up. And for people that have more time to work in their business once it's started because they will be responsible for all the work.
The other option for starting a credit repair business from home is to own a credit repair agency. This is perfect for those that don't have or don't want to spend a lot of money to get their credit repair business started. And they want to get it started quicker, and then not have to do everything themselves to provide service to their clients. Those that have a job or run another business typically choose this business model.
As you will see, starting a credit repair business from home doesn't have to be time-consuming, costly, or difficult.
The DIY Credit Repair Business Model
Set-Up Ti,e- Several Weeks to a Few Months
Cost Will Vary Greatly Depending on the Choices You Make - Expect a Cost of at Least $3,000 and up to $5,000 to Start with On-Going Monthly Fees
Check the Credit Repair Law in Your State
There is no licensing or certification required in the credit repair industry. However, each state has its own laws regulating credit repair businesses. Some require registration of the business. Others require you to purchase a surety bond. Some require you to do both. Bonds will range in price according to the amount of the bond required and your personal credit score. If you want to do business in another state you must then learn and adhere to that state's laws as well.
The cost will range from 1% to 5% of the bond amount annually. Bonds amounts required typically range between $25,000 to $100,000. Check the credit repair laws in your state.
Decide How You're Going to Obtain Credit Reports
Being able to obtain the credit report of your client to then process dispute letters is difficult. Typically credit reports are obtained from a credit report broker that is contracted with the 3 main credit reporting agencies (Experian, Equifax, Transunion). However, credit repair brokers will not furnish credit repair companies with consumer credit reports.
To overcome this challenge most credit repair companies ask their client to open up an account with an online credit reporting service such as IdentityIQ (7-day trial then $9.99 to $29.99/month) or SmartCredit (7-day trial for $1, then $9.99/month). The client then must furnish the company with their login credentials to obtain the report.
There is no cost to you as a credit repair business owner to have your client do this. But you may face some resistance from clients as they must spend more and then give you permanent access to their information.
Research and Choose a Credit Repair Business Software to Use
In order to analyze credit reports and draft client dispute letters quicker and more easily, you will need credit repair dispute software. There are many companies like Credit Repair Cloud that offer a variety of options along with their software. Here is a list of several of the credit repair business software companies and their pricing.
Cost for Credit Repair Business Software- You will typically pay a startup fee and monthly fee. Monthly fees range from under $100 to several hundred dollars a month.
Research and Choose a Merchant Services Company
You will require a merchant services account in order to be able to take credit and debit cards for payment from your clients. The challenge in the credit repair business is that credit repair clients are considered 'high-risk'. That means that not all merchant services companies accept credit repair companies as clients and those that do will charge more.
The Cost for Merchant Services- you will typically incur a small monthly fee plus either a fee per transaction or a base amount that covers a certain amount of monthly transactions.
Research Services to Offer Other Than Credit Repair
To compete in the credit repair business you must offer services other than credit repair (the removal of derogatory items). Every company in the industry offers credit repair. You have to distinguish yourself and offer more value especially when you are starting out.
There are many other ways other than disputing negative items to improve a credit score. And, there are services you can offer as an affiliate or even just as free advice to help your client. Items such as a secured credit card, rent reporting, debt payoff, credit builder loans, and more.
Create Marketing Platforms
As in any business, the better you are at marketing, and the more exposure you give your business, the more customers you will have. At the minimum, you need a website. You'll have to decide if you'll build that yourself or have someone do it for you. Some credit repair business software companies provide you with a website platform but the website itself needs to be populated with pages and content.
You will want to consider social media business pages and marketing materials such as business cards and a quality video that you can have on your website explaining your services. You should visit the websites of some of the top companies in your area to see what they have.
Unfortunately, this topic is as misunderstood as the subject of credit repair itself. If someone understands consumer laws regarding credit repair they'll know that there is no big mystery about how to get it done. Yet, there are companies out there that will gladly charge people to go through their credit repair classes for an unnecessary and largely useless certification.
The Cost of Credit Repair Courses varies widely. However, expect to pay several hundred dollars.
The Agency Business Model
Set-Up Time - 1 to 2 Days
The Cost to Start Your Business - Under $150
Credit Repair Laws and Surety Bond
You will be able to do business in all 50 states with no surety bonds required.
Obtaining Credit Reports
Credit reports for your clients will be obtained at no cost to you.
You will not be required to buy credit repair software as staff will pull your client's credit, analyze credit reports, and draft dispute letters using in-house proprietary software.
Credit and debit cards will be processed on your behalf free of charge so you will not need to contract with a merchant services company.
In addition to credit repair, you will be able to offer 13 other services at no extra cost to your client. These services will additionally help raise your client's credit score, monitor, and protect that score, and assist them with their overall financial situation. You will also be able able to offer a secured credit card, and rent reporting to your clients that are renters.
You will be provided a website containing your contact details and information about the services you offer at no cost to you. In addition, you'll have professional quality marketing videos, social media templates, flyers, business cards, and more available to use immediately.
You will receive training through an online platform, live weekly training, and one-on-one coaching from already successful credit repair business owners. You will also be mentored by this business owner and be able to contact them with help and questions. Our training covers credit repair law and the credit repair process. All of this is at no cost to you.
To Learn Details About the Agency Credit Repair Business Model, Watch This Video
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