Throughout the years preceding and during the Covid pandemic there were conflicting views of credit repair industry growth. Research firms were predicting a decline in the industry both in revenue and profit. In fact, IBISWorld, an international market research firm, stated that the credit repair industry would continue to decline through 2024. But their outlook has changed. You will learn why in our Credit Repair Business Outlook for 2023.

In a report published in July 2023, IBISWorld now predicts that the growth rate for credit repair service providers will increase by 2.8% with revenue rising by 2.5% in 2023. They make this change in their outlook through 2024 due to rising interest rates hurting consumers financially making it harder for people to pay back their debt. According to this report, credit scores have plunged and the number of consumer disputes with the credit bureaus has risen. This has boosted the demand for credit repair services. IBISWorld now predicts that revenue in the credit repair business will continue upward through 2028 until the economy recovers.

In 2020 and updated in 2023, shared that the bright side of a booming economy over the last several years for credit repair companies is that consumers become more confident and tend to increase their debt. When the inevitable downturn or recession comes (which we are now seeing), and consumers struggle with the credit they have piled up, the credit repair industry will once again be in clover.

Consumer Disputes Are Not Getting Results

Further data shared by that we want to include in our Credit Repair Business Outlook for 2023 is that when consumers try to dispute items on their own through the credit bureaus, only 15 percent of the items that consumers disputed were addressed internally by the credit reporting company. That means that 85% of the disputes never made it to the original creditor to investigate for accuracy. This may lead to more consumers using credit repair companies to ensure that the federal law with regard to their dispute of accounts on their credit report is followed. closes its assessment of the future of the credit repair industry this way.  (The) best bet, though, is that the $ 3.0 billion U.S. credit repair industry will continue to have a major role. And that when the inevitable economic downturn arrives—now or in five years—hard-pressed U.S. consumers will look around for professional help.

credit repair business outlook for 2023
Photo by Mikhail Nilov

Credit Scores are Turning Downward

To further the points made above, ValuePenguin released a report in June 2023 showing that the average credit score in the U.S. leveled off from 2021 to 2022. This is the first time since 2009 that credit scores have not risen. This is a further indication that we are about to see something similar to what occurred with credit scores after the 2008 collapse of the banking industry.

Credit Repair Business Outlook for 2023- A Key Issue in Credit Repair

Here is the biggest problem that the majority of credit repair companies face. They only provide one service, credit repair. Credit repair is narrowly defined as the removal of derogatory items from a consumer credit report. 80,000 companies in the United States currently provide this service. And for the most part, it is done the same way by all 80,000 companies because they must follow the process dictated by federal law.

In order to remain competitive with the big credit repair companies like Lexington Law, Ovation Credit Services, and Sky Blue Credit Repair, and attract consumers that want to repair their own credit, smaller companies must provide their clients with more services. And, they must upgrade their service offering by using available technology such as online customer reporting, phone apps, and more.

Introducing New AI Technology for the Credit Repair Industry

Credit repair is just one of several services we provide each client as part of a package. While we are attempting to remove obsolete, erroneous, or unverified items from the 3 major credit bureau reports, our clients also receive credit monitoring, identity monitoring, credit-building tools and services, a budgeting system, and more. We help people not only increase but also monitor and protect their credit scores while helping them with their overall finances.

In addition, each client has an online account where they can monitor the progress of their credit repair service including their credit reports and credit scores from all 3 credit bureaus. Through this online account, they can also access all of the services that we provide them.

Join a Company That Has Already Built the Infrastructure

If you are interested in getting into the credit repair industry and can only offer the service of credit repair, it’s going to be difficult to be competitive. Typically, your prices will be higher, and you will not provide the same level of value that we can.

So instead, join our company as an Independent Advisor. You’ll own your credit repair business without having to set it up yourself. And you’ll be able to do business in all 50 states. You’ll have the latest AI technology to instantly provide your clients with live credit scores allowing you to have the time to work on gaining clients and building your business. You will offer your clients and referral partners more value as well.

Perhaps you’re a real estate, mortgage, banking, solar, or auto professional that would like to have services available to help your credit-challenged client become qualified buyers. With our platform, you can help them directly or refer them to us.

Visit our Credit Repair Business Opportunity page to watch an overview video and schedule a phone appointment with us to get your questions answered.