Given our existing economic condition in this country, it seems that starting a credit repair business is a good idea. There are millions of consumers that need help improving their credit scores. You don’t need a license and a credit repair business can be operated from a home office. As well, when you search the internet, you'll see claims that starting and operating a credit repair business is easy. It sounds like the perfect business to start, right?
So then why am I recommending not to own a credit repair company? Because there is so much to know about getting a startup credit repair business going and then running it. I’m going to give you the truth about the credit repair business. This is not to discourage you. On the contrary. I have been in this business for 10-plus years and love it. But you shouldn’t just dive in, buy software, and go for it. You should go in with your eyes wide open and have a plan.
What They Don’t Tell You
If you search the internet, you’ll find many companies that want to sell you credit repair software for business. The most prominent of these companies is Credit Repair Cloud. If you believe what they tell you, you’ll feel like you just hit the lottery. It’s what they don’t tell you that’s the problem. This is what I’m going to concentrate on here.
The Business Model is the Key
It isn’t all bad news. As I mentioned, I have been in the credit repair industry since 2012 and have generated revenues of up to and over $1 million a year. I run my business from home and schedule my business around life’s priorities. I live in a beautiful community on Florida’s Gulf Coast. It’s a great lifestyle. You can have a great lifestyle too by running a credit repair business.
But YOU MUST HAVE THE RIGHT CREDIT REPAIR BUSINESS MODEL. After I share with you what no one else will tell you, I will then tell you where you can get information about the same business model that I operate. Yes, you will have the EXACT SAME OPPORTUNITY AND BUSINESS MODEL THAT I HAVE!
The Competition in the Credit Repair Business
There are approximately 258 million people in the United States age 18 and over according to the 2020 Census. According to Fico.com, 11.1% of the total population (which presumably includes age 17 and under as well) has a credit score lower than 550. Another 7.8% has a credit score under 599. So, if we use these percentages and count only the population over age 18, there are approximately 48.7 million people in the U.S. with bad credit.
You might think by reading those numbers that the market is massive. It should be like shooting fish in a barrel to find customers. Well, what Credit Repair Cloud, Turbo Dispute, and other credit repair software companies don’t tell you is that there are 69,000 credit repair companies in the United States. The competition is fierce. What they also don’t tell you, and you wouldn’t know unless you have been in the business for a while, is that not everyone wants to fix their credit or can afford to work with a credit repair company.
Before you decide to own a credit repair company, you have to figure out how you’re going to find customers.
Regulations and Laws
Next, you must contend with state and federal government regulations. It’s not that difficult to do but you’ll find out quickly that you can’t charge whatever you want to your customers. You must only charge a nominal account activation fee and a monthly fee. OK, so maybe you can live with that. But you’ll also find out that once you satisfy the requirements in your state, you’ll only be able to do business in your state. To sell services to clients in other states you’ll have to satisfy those requirements as well. Keep in mind that if you can only do business in your state, it will limit and hamper any online marketing efforts like social media.
Setting Up Your Credit Repair Business
Here’s the second biggest challenge you’ll have when figuring out how to start a credit repair business. Acquiring everything you need to start your business isn’t easy. Let’s say you buy software from Credit Repair Cloud or another credit dispute software company. You still need a website even though they provide you with a template. By the way, it can take months for Google to recognize and rank your site. Even if they rank your site, it will take a long time to get on page one if you ever get there. Just Google, “credit repair in your city or area”. You’ll see your biggest competition on page one. If you’re on page two you might get some traffic to your website. But page three and beyond, forget about it.
You also need a merchant services company to be able to take debit and credit cards. The problem is that merchant services companies don’t like to do business with credit repair companies because of the number of chargebacks from customers. So, good luck with that one.
Then you’ll need a way to pull credit for your clients. Credit report brokers, which is where you would typically get credit reports, have a business relationship with the credit bureaus. And the credit bureaus do not want them to sell credit reports to credit repair companies. What Credit Repair Cloud and other software companies recommend that you do is advise your customer to open an account with a company like Identity IQ. Then have your customer provide you with their log-in credentials so you can get their credit reports. That’s not an ideal situation because it may make your customer feel uncomfortable and they have to pay a fee to open the account.
A Better Way to Own a Credit Repair Company
You can, as others have, go through everything I’ve described above. Just know that if you do, you’ll be limited as to the amount of business you can bring in. You’ll be limited to doing business in just your state, and you’ll be doing all the work yourself. Instead, partner with us and MWR Financial.
With the business model that we operate under, you wouldn’t need a website, merchant services, or find a way to pull credit. That’s all provided to you. You’d also have staff available to pull credit, analyze credit reports, and draft dispute letters also at no charge. And you’d be able to do business in all 50 states immediately. Further, you'll receive credit repair business training so that you'll know exactly how to build a successful credit repair business.
To Learn More, Watch the Following Video
Marketing, Marketing, Marketing and Sales
I’m not going to get into a training session about marketing a credit repair business here. But what I will say is that whether you go it alone with software or you operate under the same business model as I do, you have got to have a great marketing plan. This is the biggest reason that our business model is the best way to go. With the time and energy that you’ll need to put into marketing, you won’t have time for writing letters and all the administrative work. Let a staff that is highly trained to do that do it for you. Your job as a credit repair business owner is marketing.
You need to the get word out to as many people as you can in as many ways as you can. And then you need to be good at the selling part as well. This is the most valuable function when you own a credit repair company.
Schedule a Phone Appointment With Us
Once you’ve seen the video above, but not before please, click below and schedule a phone appointment. I can’t promise you’ll speak with me although I do the majority of these calls. If you don’t speak with me, you’ll speak to one of our top credit repair business owners. Understand that we are not going to sell you on our business model. You’ll see the information in the video and presumably like what you see before you book the call. We’re just here to answer your questions and share our experience. Then you decide if it's the right fit for you.
Please Note- Appointment Calendar is Set for Eastern Standard Time