More and more people are having problems with their credit history. A bad credit history means an unlikely chance to join in financial programs. While these can be repaired on their own, some people need assistance in credit repair.
Credit repair is a good business venture that has yet to be tapped by many people.
How to Start a Credit Repair Business (Plan and Opportunity)
- Before starting the business, it is best to come up with a plan first. A good business plan can help address major issues when starting a business. A good credit repair business plan should include the business’s overview, goals and objectives, services offered, marketing strategies, competition, and financial issues if there are any.
- Next is to study a credit report. An individual interested in credit repair should study his or her own credit report first. Individuals are entitled to a free copy a year of their credit report which they can get from three major credit bureaus.
- Individuals interested in repairing credit should learn everything they can about the industry. Aside from enrolling for credit repair business training, there are free ways to learn how to repair credit such as free eBooks, free workshops by local banks, or simply talking to accountants and other experts.
- Learn how to obtain or request for reports and access information through the local credit bureaus and credit reporting agencies. When repairing credit, it is important to have access to a client’s credit information.
- Understand the role of a credit repair specialist. The credit repair specialist serves as a middle man for the client and the credit bureau.
- Work with the client as soon as the credit report is obtained.
- Rather than starting a home-based credit repair business as a sole proprietorship, consider a franchise. There are credit repair companies that offer franchises that do not require down payment to start. Individuals seeking a franchise can even receive perks such as a laptop, free website, credit coach, and clients as soon as they start. A franchise is recommended for individuals who have problems coming up with the start-up money.
- No licenses are required to operate this kind of business. The credit repair specialist needs only credentials and recommendations from previous, satisfied clients.
Take note of overpromising to clients. Credit specialists only correct genuine mistakes that have been making a client’s credit history look bad. Credit repair agents do not alter or erase accurate information present in the credit report.