If you’re looking for a new business venture, credit repair may be the perfect opportunity for you. With today’s struggling economy and high unemployment rates, many people are interested in starting their own businesses. This blog post will talk about how to start a credit repair business and what it takes to get started.
What Is A Credit Repair Business?
A credit repair business is one that helps people improve their credit scores. They do this by looking over the person’s files and correcting any mistakes on them, such as old accounts or incorrect information. Credit repair businesses don’t help create new lines of credit, they only fix things like inaccurate balances and other errors on your account.
What Qualifications Do You Need To Start A Credit Repair Business?
You’ll need to be knowledgeable in the credit industry. You should also have a portfolio of work as well as personal experience with your own credit score and how it was repaired or increased.
If you don’t meet these qualifications, then this business might not be for you! However, if none of that applies to you but still want to start a credit repair business, then here is some information that you’ll need to know.
To learn all about credit repair take our Credit Repair Blueprint Course that will teach you everything you need to know about credit repair to be able to help your future clients. You can also sign up as an affiliate so you can make money from having your clients take the course.
Depending on your state you might also need to a special license and follow all state and federal regulations.
Related: How To Dispute Your Credit Report Information
Business Credit Repair Software
The next important aspect is what tools you are going to use to help your clients. The best software you will need in order to run your credit repair business is Disputebee software.
This software will help you achieve results faster for your clients while spending less time on manual tasks. Disputebee automates all of the following for you:
- Client list along with all their documentation and personal information
- Importing clients credit report
- Identifying negative items on their credit report including: collections, inquiries, late payments and bankruptcies
- Generating ready to send dispute letters to the credit bureaus, collection agencies, banks and creditors.
- Sending letters via USPS certified mail
This software is crucial for your business and make your life much easier.
How To Form Your New Business?
The first thing you need to do is form your new business. To start a credit repair business, the best way to go about it is by forming an LLC in your state of residence, and then registering with the Secretary of State in that state. You can get a free LLC with Inc Authority who does all the registration and filing for you. You’ll also want to register for a trade name which will be what’s shown on storefronts, websites and other advertising.
Related: How To Form Your Business
-Naming Your Business:
Once you’ve got your LLC in order with the state of residence, then it’s time to name it! You’ll want to keep things short, but also memorable so that people can find you easily. And remember – this is a credit repair business therefore “Credit Repair” should be included in the name.
-State Registration:
The state of residence you choose to form your LLC will also dictate where you’ll need to register it as a trade name and get an INC or IRS number for federal taxes from the Internal Revenue Service. If this is done, then your business is officially up and running!
-Website & Domain:
After your business is formed you’ll need a website that is well designed to help your business and educate your clients. The easiest and best way to start a website is with Bluehost.
Bluehost gives you a free domain for the first year, 1-click WordPress Install, 24/7 support and all for only $2.95/month.
-Business Insurance
When you start a business you should get business insurance to cover yourself in case you make mistakes or an error comes up that could cause damage to the client especially if you provide professional expertise which is what you do with credit repair. You can find affordable business insurance with Embroker.
How To Setup Client Billing And Invoicing
Getting your business setup to start processing credit cards can be confusing but there is so many great options on the market today to make running your business efficiently.
Here is a short list of some of the tools and software you should have setup to run your business smoothly, keep your finances on track, payment gateways, and billing and invoices.
- Invoicing/Accounting Software – Freshbooks
- Payment Processing – PayCafe
What are the best types of marketing strategies for my credit repair company?
After you have educated yourself, created a website, filed your business, and got all the correct software it’s time to start marketing and finding clients for credit repair.
The best type of marketing is word-of-mouth, but for those who are just starting out it’s recommended to start small and work your way up.
Doing credit repair on a few friends or family members in the beginning will give you some extra experience with this business before approaching others.
There are other ways to market your business, which include writing articles for credit repair blogs and social media. The best tool for this is SEMRUSH that will help you with SEO, content marketing, competitor research and local SEO tactics that help your business standout and get noticed.
If you are not afraid to take risks then another option is applying for a booth at a nearby event or expo where there will be people looking for credit services.
The downside of this type of marketing is the high cost of renting an exhibitor’s space .
If you want to reach a larger audience, then it’s recommended to contact your local newspaper and see if they are interested in doing an article on the credit repair business that is just starting.
Related – Credit Saint Features, Pro’s And Con’s
Build Business Credit
As your gain more clients your business will grow and you will be looking to expand and grow your credit repair business.
You might want to hire employees, spend more on marketing and advertising, buy or lease an office space, or invest in your education. In order to do all of this you will need funding. In order to get funding for your business you will need to build your business credit.
Building your business credit is essential to growing your business as you can earn more funding for a business than using your personal credit. If you just use your personal credit for your business it can set you up for trouble in the future especially if you get sued because then your personal credit will take a hit and because that’s the only credit you have you’ll have to dig yourself out again.
Having business credit will allow you to get the best business credit cards for your business that offers you low interest, cashback and rewards.
Learn How To Start Building Business Credit
Final Thoughts
To start your credit repair business you’ll need to educate yourself about credit repair and get any state licensing that is required. You will need to apply for an LLC for your business and you’ll also need a credit card for your business for all your expenses and start building your business credit. Use credit repair software to help automate your business, get business insurance to cover and protect yourself, get a website, and start marketing to find clients.
Do you have bad credit, no credit, or want to learn how to become a credit expert?
Signup for the #1 DIY Credit Repair Course
The Credit Repair Course includes:
- How to find your credit report and your ACTUAL Credit Score
- A breakdown of how your credit score is calculated
- How to increase your credit score in each category
- The best tools to increase your credit score fast
- How to dispute negative items from your credit report
- Credit dispute letter templates and when to send them
- The best credit cards for your credit score
- How to use credit cards to leverage your money and business
- How to use credit cards to get free travel, bonuses and rewards
Learn how to fix your credit for life by enrolling in The Credit Repair Blueprint today!
Have a look at the reviews of the best credit repair & fixing companies of 2022: