How to Start a Credit Repair Business: Easy Steps to Start With

Wondering how to start a credit repair business? You’ve come to the right place. We understand starting a new business is daunting and you need to have some basic knowledge of how business works before you jump into starting one on your own. We are here to help you understand the know-how of a credit repair business and some easy steps to help you get started. Starting a business is not enough. You also have to make it a successful business to keep you motivated and sustain in the biz world. 

credit repair business

Why You Should Start a Credit Repair Business?

Let’s look at why you should have a credit repair start-up. It is a great way to give back to your community in a meaningful way and there is a lot of potential for growth and success in this business. It also gives you the liberty to make your own working schedules and freedom. 

When you are the boss, you can choose the people you work with and work according to your ideas and goals. 

You Can Work From Home

One of the good things about starting a credit repair business is that you can work from home. Everybody enjoys working from home. 

  • It gives you enough time to be with family as well as work as per your preference. Set up your office in one corner of the house. It gives you the flexibility to work and you won’t have to give excuses to your boss if you can’t meet a deadline. 
  • You won’t have to travel for work, this is a dream for many office-goers. No need to waste time traveling long hours for work. 
  • Setting up a home office means you save money on office rentals. Add the expenses of business like electricity and space used at home in your taxes and save on that as well. 
  • Another good thing is there is no restriction on what you wear, you have the freedom to sit in your pajamas and still work efficiently. This is not applicable for meetings with clients, of course!

Benefits of Running a Credit Repair Business

  • A credit repair business is profitable if done right. 
  • It is a business that gives recurring revenues.
  • It is a scalable business if supported by software for credit repair.
  • The key to any financial system is credit, making this business not reliable on the economy.  
  • With a credit repair business, you can improve and help people’s well-being in terms of their finances. 
  •  With affiliations and referrals, your business will grow itself. 

Start Your Home Credit Repair Business with These 7 Steps

Now that you have an idea about the various benefits of starting a credit repair business let’s jump into how you can start your business at home with 7 easy steps. These steps are easy to follow but require dedication and focus. It is always better to start with a tried and tested business method rather than stumbling in the dark.

1. Integrate Your Credit Repair Business Software

It is possible to have a credit repair business offline but we live in a world where everything is available online, why should your business remain out of reach online? Many business owners now rely on software for their credit repair business and have found it helpful. You can generate credit reports in a minute with the help of software. 

Take a look at some benefits of owning a credit repair business software.

  • You can manage contacts and events with ease
  • Makes capturing leads easy
  • You can keep a check on the progress of credit inquiry and systematically assort client lists
  • Email marketing and newsletters need a lot of contacts that you can export from your software

 2. Training to Understand the Credit Repair Process

Any business needs basic training, to begin with. Starting out without any understanding of the business will land you in a soup. With training you can use your time and money wisely to help your business grow, it also gives you credibility. 

Educate yourself with training and certifications before you start your business. You also need to improve your own credit scores first. Many people don’t understand how to improve their credit scores. That is when they will come to you, focus on how to become a credit repair specialist.  You should have a sound knowledge of it or else you might lose clients. Learn about FICO scores, improving credit scores by removing false items, and many more. Be up to date with advanced methods like negotiations with the bureau and sending timely letters. You should deliver on the goals you make for your clients. Big credit repair firms don’t dispute more than 2 or 3 cases per month.

3. Get Your Business in Order

Are you still wondering how to start a home credit repair business? 

  • The first step is to have a concrete plan for your credit repair business. 
  • Make sure you get your employees to sign the NDA forms so that your training efforts are used for your business only. 
  • You should also set a platform for recurring payments.
  •  Work on building a strong relationship with your clients with good client agreements. This will also protect your business. 

4. Buy a Domain and Build a Website that Attracts Visitors

This is a crucial step for any business, especially the credit repair business. For an online business, you need to buy a domain first and then build a website that is attractive enough for clients to use your services. Here are some things to help you with your website:

  • Include pop-ups that are strategically placed on your website, these should be offers and not ads to boost people to visit your website. 
  • You can also offer exclusive content in return for a mail. This is done for boosting your email marketing list. 
  • Offering free consultations is also beneficial for credit repair startups. When you do this, you get the contact details for a follow-up of leads that show interest. A free consultation can also make prospective clients more curious and spark more interest in your plans for them. 
  • Add a sign-up form feature for clients on your website and work on enhancing your software’s capabilities. This will enable leads tracking as well. 

5. Set Up Client Communication Platforms

The first impression is the last impression, we all know and nobody will give you another chance to create that first impression. Many new credit repair companies make common mistakes related to communication platforms that you should avoid. 

  • You should set up a voicemail for your business. Studies suggest that the first time when you call a business, 75% of calls never go through. A voicemail can help build your credibility with the first point of contact.
  • Having a professional email address is a must. Having your domain name in the email address instead of hotmail.com or gmail.com is considered professional. This will increase the deliverability of your emails. People open such professional emails and show your emails as legitimate and secure. 
  • Set up a phone number dedicated to your business. A toll-free number is a good option and also works as a good marketing strategy. Such a number is also easy to remember. 
  • Your credit repair business software offers many tools for communication that business owners should tap into, like:
  • The software allows you to check the progress of each client and you can time when to make the necessary communications. 
  •  Integrate your emails with the software to export contacts easily. 
  • Give customers a good experience with the help of your software’s features like the CRM. Provide them with all the information that is relevant to their case and show that you care. 

6. Train Employees to Help you Run your Business Well

Training employees is one of the most important things you should focus on as they will be the ones interacting with the clients. Client relationships depend on how good an employee is. 

  • Employees should have a basic understanding of phone etiquettes. 

Phone etiquettes play a crucial role to help you run your business well. You can use scripts for sales as well as for customer service. These scripts provide answers to your employees in situations when they don’t have one. 

  • Train them for email responses 

Email responses are also important because most of our business happens online these days. Your responses should be professional in tone. Responses that are overtly friendly are not appreciated by many and are not considered professional. Maintaining a well-balanced tone is a good practice. 

  • Training about the business software

Every employee should be well-versed with the credit repair business software and be able to find detailed information about the clients. Maneuvering the software for the client database and all the necessary information at any given time will prove helpful for clients as well as your business. 

7. Meet Regulatory Requirements

Make it a point to be insured and bonded to meet all the requirements according to your state’s rules and regulations. 

Does your business have a license? If not, get your business licensed. This ensures credibility and makes the clients have trust in you. It shows that the business is legitimate and will not do anything that is unethical. 

For all the newbies who are not aware of taxes, get some help regarding quarterly taxes. If you have no idea about when and how to pay taxes, you should learn about it to avoid paying penalties for late payment of taxes. 

 How much money do you need to start a credit repair business?

If you are wondering how much money is required to start your credit repair business, a minimum amount of $2,465 is required to start a business home. It can go up to $29,059 and on average, it will take around $15,837 to start a full-fledged credit repair business. 

Is a credit repair business profitable?

Yes, the credit repair business is profitable if you put in dedication and effort. As mentioned earlier, this business does not rely on the economy and hence gets you more profit. Credit repair specialists are highly valued and in demand, as many people don’t know how to improve their credit scores. Some credit repair businesses make millions of dollars but that takes time. 

 How can I make money with credit repair?

You can make money with credit repair businesses with affiliations, charging clients for your credit repair services, giving additional services, getting clients to sign up for memberships or subscriptions. Similar to what Netflix or Hulu does, a subscription will allow you to charge clients on a monthly or yearly basis. Following this industry pattern, you will make money without a doubt. 

How much should I charge for credit repair?

There is no upper limit to how much you should charge. Saying that doesn’t mean everybody is willing to pay you what you desire. Slowly grow your reputation and scale up your pay. This is a recurring revenue business so making your clients stay a long time with you is more profitable. You can calculate your fees with the help of credit repair business calculators available online. On average, businesses charge $50 to $130 and more for a month. Deletions start from $30 and upwards. Generally, people pay over $65 for repairing their credit. 

 Do you have to be certified to do credit repair?

A simple answer is no, you do not have to be certified to do credit repair. Even though it is well regulated and entails various laws there is no need for certifications. Though training and certifications are always helpful for learning the loopholes and helping your clients with their credit. It is also true that people trust certified credit repair specialists and you can up your fees if you are certified. The latter can also be done with more experience. 

Conclusion

With this, we hope you have a fair understanding of how a credit repair business works and how you can start your credit repair business online and from home. It is a profitable business that will profit not just you but genuinely profits your clients as well. There is a lot of scope for growth as discussed earlier. Follow these 7 easy steps and kickstart your business, it is easy to set up with recurring revenue. You can always take professional help if you get stuck along the way. Work on your business plans and get started right away keeping all the steps in mind.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.