The credit repair industry is becoming more important to consumers. The opportunities for growth in this industry are undeniable, and with the right strategy, you can have a profitable, steady career.
The credit repair business is ready to deliver rewarding careers to the motivated people who want to improve their lives. Wondering how you can become a part of this exciting industry?
It’s actually easier, and more affordable, than you might think…
Why Start a Credit Repair Business?
So what is it about starting a credit repair business that makes it such a great idea? Why is this one of the best business plans available today?
Starting a repair business is simple, and your timing could not be better; now is a great time to start. Not only is the timing right, but you can start your credit repair business for an incredibly low price, and expanding the business is easy once you understand the basics. You’ll be your own boss, set your own schedule, work where you want to work, and do it all from a computer or mobile device. Consistency, flexibility, and profits: these are the three pillars that make credit repairing such a fantastic business.
No matter what happens with the economy, the housing market, construction trends, manufacturing, and all the other variables, the credit repair industry remains solid. Through the ups and downs, people need to repair credit scores for many different reasons. In many respects, repairing people’s credit is virtually recession proof.
You can make money from the comfort of your living room, from your home office, or from the local coffee shop. You can go on vacation wherever you please; as long as you have an internet connection, you have a way to run your credit repair business.
Some businesses are expensive to start and maintain and bring only marginal profits. A credit repair service, however, is affordable and, with diligence, extremely profitable. You can usually start the business with less than $100, (assuming you already have a computer or mobile device) and you can bring in $700 to $3,500 per client. After marketing and promoting your business, you will usually have a business that pays for itself after a few clients.
You can expect to bring in about $69 per client every month. If you have 100 clients, you’re bringing in $6,900 a month. That’s an annual revenue stream of $82,800. If you build to 1,000 clients, your business will have revenues of $828,000!
In fact, some users have as many as 10,000 clients, which means over $8 million in revenues. Not bad for a $100 investment!
Great Credit Matters in Post-Recession America
After the recession of 2008, many Americans struggled to pay their bills and make payments towards their debts. For some, it became a choice between keeping the lights on or paying the credit card balance. This left many people with shattered credit scores. To make matter worse, there is a renewed focus on ensuring that borrowers have solid credit. Now people are stuck with compounding problems: their credit is bad and lenders are more strict about scores.
They obviously need to repair their credit, but what average person has a depth of knowledge in the complex credit system? Not many.
Fortunately, you can be their hero.
With knowledge of the credit system and a few simple software tools, you can help improve a client’s credit scores and help them achieve the dream of a quality car, home ownership, or the loans they need to grow a business.
Working in the Credit Business: The Importance of Software
It is virtually impossible to start a credit repair business without the right software. Software makes you more efficient, saving time and helping you scale your business to reach the huge revenues we discussed earlier. Using our intuitive programs, you can import credit scores and reports in mere seconds, which will literally save hundreds of hours of typing and manual entry. Importing the data with our software also help you avoid errors. You’ll have a credit repair customer portal, and you can give access to your team, clients, affiliates, and even leads, showing them what you can do.
To make the system even better, it’s all cloud-based, so you and other users have access from any computer, tablet, or smartphone. It’s secure and available 24 hours a day, giving you total convenience and flexibility. If you’ve started repair business services, you can upgrade to the right software quickly.
How to Achieve Long-Term Success
The Initial Step to Starting a Credit Business: Get Your Own Credit Report
One of the very first steps you should take when starting your credit repair business is to get a copy of your own report from multiple sources, including Equifax, Experian, and Trans-Union. Take at least a few hours to go over your reports and see what you find. Understand why certain things are reported and why other items are less important in the measurement of the credit score.
Only when you have a thorough understanding of your own score can you start to analyze and improve the score of others.
Learn As Much as You Can about Business Credit
There is a wealth of free information on credit reporting, score calculations, and debt factors that help you understand the complexities of credit. Your clients will expect you to be an expert, so study everything you can to ensure you are fully informed on the credit business.
After learning about the credit industry, you should be able to answer questions like:
- How is credit measured?
- What’s the most important part of a credit score?
- How does bankruptcy affect credit scores?
- What an ideal debt-to-income ratio?
- How does employment history affect credit?
There are downloadable guides on the Federal Trade Commission, as well as information from FICO and other sources that help you fully understand the details of credit.
Understand Your Role
As a credit repair provider, where does your role begin and where does it end? For the most part, you will act like an intermediary between your clients and the credit bureaus. You will also work with your client’s creditors. Your job is essentially to help your client correct mistakes on the credit report and eliminate any information that is inaccurate or outdated. However, you won’t be able to erase all negative items, and you won’t be responsible for activities that improve credit, such as paying bills or reducing debt load.
Communicate Your Service and Don’t Overpromise
It’s important when you start your credit business and begin working with clients that you communicate what you do and, possibly more important, what you don’t do. In any business, especially one involving personal finance, you must clearly communicate your role and never overpromise.
As a credit repair provider, you cannot remove negative items that are accurate, and anything that is accurate will remain for seven years. However, there are negotiating tactics that you can use to remove them, but you have to deal with the agencies appropriately and nothing is guaranteed.
But there is good news that you can tell your clients: roughly 79% of reports contain errors. This means the majority of your clients will have errors that you can correct. In most cases, these errors are erased quickly and conveniently, but it takes a professional like you to find them.
Once you erase the blatantly inaccurate items, your client’s score will improve and you can move on to negotiating the removal of negative but accurate items.
Learn to Manage Your Time
This is a problem for almost every entrepreneur, regardless of industry. Managing time poorly, and not being disciplined, can lead to a failed business. Knowing what activities are necessary and productive, and what activities should be either ignored or outsourced, can be tough.
It takes time as a business owner to reach maximum efficiency, but one thing you can do right away is to have the right software in place. Software lets you automate certain tasks, especially time-consuming jobs like entering data or searching for specific credit information. As a credit repair professional, the right software will save you time and allow you to maximize the profits from every client.
Promote and Market Your New Business Effectively
Once you have an understanding of the credit system and have all the right tools and software in place, you can start marketing your business.
One of the most effective ways to generate credit-repair leads is to work with people involved in the credit process, namely, people in auto and real estate sales. These people want customers to qualify for loans so they can purchase their products, which means a credit repair provider could be beneficial to their bottom line. Visit with managers and sales people in the auto and real estate business to create a foundation of quality leads.
You can also create flyers for your credit repair services. A flyer will give a brief description of your services and outline the benefits of working with you. It won’t be lengthy, it will simply give a rundown of your services in a clear and organized manner. You can post these flyers in many different locations, including community bulletin boards.
Local news paper ads can also be effective for advertising your new business, and regional magazines can be used as well.
When starting, give your friends and family the chance to use your services for a discounted price or even for free. Then ask for a recommendation that you can use in advertising. (Do NOT create false or fabricated testimonials.) This will give your services a positive reputation throughout the community.
Start Small, Learn, and Grow
This is more of a mindset than a direct strategy, but it’s important for your long-term growth and short term success. When people start repair businesses, they want to begin small and build a foundation of clients. Start by building locally, and avoid seeking rapid growth that you’re not prepared to handle. Building credibility and experience early, and serving clients effectively, will help you become a leader. Over time, you can expand and grow, but be sure to serve the clients you have before trying to build a credit repair empire.
Credit repair can be confusing, so you’ll need all the experience you can get. If you’ve started credit repair services, take your time and you’ll have better long-term success.
Use Credit Repair Software
We discussed it above, but it is so important that it must be mentioned again. Credit repair software is absolutely crucial to the success of your business. Cloud-based repair software that you can access at any time from any device will make you more efficient. You’ll be able to serve clients faster and take on more business, all without sacrificing quality of service.
With the right software, you can start repair services with automated dispute letters, client and affiliate portals, and customizable platforms. Clients can log in, sign agreements, monitor progress, and make adjustments, saving you hours of time. If you are considering starting a credit repair business, you absolutely must use the right software.