The credit repair business is one of the most lucrative businesses. And to get started in this domain is not at all difficult. The Scope of growth in this field has no limit, You can scale your business to even six-figures. You can print this article or bookmark the same for future reference.
Steps Needed For Putting How To Start A Credit Repair Business Into Action.
In this article, I’ll go through from ‘complete basics’ to ‘how you can land your first client’.
These are the topics that I’ll be covering;
- What is a credit repair business? – Definition
- Why start a credit repair business?
- Laws Regarding Credit Repair Business
- Choosing Software (Optional)
- Create A Website
- Invoicing & Billing
- Getting Your First Client For Credit Repair Business
What is a credit repair business?
Credit Repair Business offer services to the consumer to increase their credit score. Consumers Opt for these services to qualify for applying for credits from institutions. In simple terms, Your job as a Credit Repair Business is to help your customers with bad credit scores. The main task for credit repair business is to dispute and write off negative marking on your credit report.
As a Credit Repair Business owner, it would be your responsibility to manage and communicate with the credit bureaus, lenders, and other agencies on behalf of your clients. You do not need to have a specific requirement to start this business, The only thing you need is a bit of education on the subject of credit repair and the laws surrounding them.
Why start a credit repair business?
Of course, there are many more benefits to starting a credit repair business. I’ll share with you some of the most loved by people.
You can work from home
2021 has seen some of the highest acceptance of remote working from some of the biggest companies. And this trend is not going away soon, As a Credit Repair business owner, you can choose to work from anywhere in the world.
– This will Save Time For Commute
– You can Choose Your Own Hours
– Choose your Dress Code with Flexibility
Other benefits of starting a credit repair business
– Make Recurring Income From Clients
– Scale your business by outsourcing repetitive tasks
– Profitability is very high in this business.
Laws Regarding Credit Repair Business
At the end of the day, you are running a business and it’s crucial to work your way around all laws and regulations. This will not only help you in build a good reputation. But also avoid troubles in later future. If you are in the US, All credit repair business laws are categorized into two Federal laws and State Law. Federal laws are essential they need to be followed no matter your state, But state law is subject to your current address. The biggest federal law that everyone needs to follow is Credit Repair Organizations Act (CROA) 1996. This is a law that governs all credit repair businesses. There are 25 states that require you to register your business, Here is the list of all the states.
Choosing Software (Optional)
It is not at all required to choose the credit requirement software. But as they are being used by individuals, I’ll share with your some of the software and their features.
Top 3 Recommendation for Best Credit Repair Software
1) Experian Boost
2) Personal Credit Software
3) TurnScor
Benefits of Credit Repair Software
– Efficiency
– review their credit report
– generate dispute letters
– Keep tracks of your clients
Create A Website
Websites are the backbone of any online business. You need to create a place where the client can learn about your services and contact you directly. Your website should look good, have relevant information, and should be accessible. Your website plays a very important role in establishing the first impression of you to your client. It is vital that you avoid using the free website because it does not give you the freedom to have total control. Before you start to create your website, You should also create a good-looking professional logo for the same. This will help you to establish a brand for your client.
1) Creating A Logo
Notably, You can able to create a free logo from https://hatchful.shopify.com/. On the other hand, If you need a personalized logo, you can hire someone from Fiverr.com or 99desgins.
2) Building A Website
Obviously, there are numerous ways to create a website/application. You can hire a web developer to create a website for you, But I think that would be overkill for a website like yours. A simple solution could be CMS, a Content management system. These are some websites that will do all the work, And you just have to drag-drop features.
Squarespace – This is one of the most favorite websites for people who want to create beautiful websites without a line of code.
WordPress – Nowadays WordPress is one of the topmost powerful CMS on the internet. You can find thousands of themes that you can install and create a website in a matter of few minutes.
SEO & ADS
Once, You have created a perfect website, the next step is you can optimize your content for SEO. This means, Whenever someone searches for the keyword “Credit Repair Services” your website should rank on google. You can also hire someone to do this part. Apart from organic searches, You can also run paid ads on the search engines to get instant traffic and new business.
Social Media
It is also a good idea to create a social media handle for your business. You can also advertise on this platform to gain few clients, This will separate your personal social media from your business handles.
Invoicing & Billing
Invoicing and Billing could be confusing and look intimidating. But we can break down the process into simple steps.
1) Third-Party Software
As mentioned earlier, there are many credit repair software, that also offers services of in-built invoice and payment receiving system. Using software; Can free you from managing all the payments by yourself.
2) Your own payment system
Payment Gateway: Stripe
Merchant Account: Squareup
Recurring Billing Software: Chargebee
Getting Your First Client For Credit Repair Business
1) Free/Paid consultation
Once, You have got the lead for your client. You can offer them a free/paid consultation about your service. Here, You’ll receive their credit information.
2) Contract
In the next phase, You’ll create a legal contract with your client about the course of the next payments. And about the services you are going to provide.
3) The First Invoice
Once, A contract is established. You can send them the first invoice for this month.
4) Monthy Recurring Charges
Every month you’ll send a new invoice for your services; Until the client stops the contract.