How to Start a Credit Repair Business

Credit Repair Business

Mistakes on credit reports are a common nuisance. False derogatories tarnish applicants’ FICO scores, making borrowing difficult. Across the US, consumers delegate repair to professionals. You, too, may open your own credit fixing business. This is much easier than you may think.

Aside from bringing profit, your work will also benefit the community and help other people improve their lives. You can run the company from home, with autonomy and flexibility. As the cherry on the cake, you will be able to write off some of the business expenses on your taxes. So, where to start?

1. Find Suitable Business Software

First, you will need digital tools to be competitive. Check top credit fixing companies on Credit Repair Partner to see what makes the leaders popular. Fixing scores without software is feasible but slow. However, there is no need to invest in app development.

Rely on ready-made solutions. Digital products designed for repair firms allow employees to manage contacts, capture leads, organize customers, and monitor progress on each case. You can also export contacts for marketing and information purposes.

2. Get Trained and Certified

You need to learn how the scores are calculated, and what totals to aim at. The FICO range is between 300 to 850 points. Generally, anything under 760 makes borrowing less affordable, but the criteria vary depending on the lender and the type of loan or credit line. Deletion of any item raises the score automatically, but firms prioritize mistakes based on how damaging they are.

Most repair agencies limit disputes to 5-10 per month, others make them unlimited. You need to learn how to customize and time your letters for maximized effect. Professionals must be knowledgeable about advanced negotiating tactics, so communication with bureaus is as efficient as possible.

3. Structure Your Company

Create a business plan and streamline your interaction with employees and customers. All members of the staff need to sign a non-disclosure agreement — make sure the knowledge you share benefits your company only. As you will charge a monthly fee, install a reliable platform for smooth recurring payments.

4. Develop Online Presence

Invest in a website for attraction and conversion. Make sure your pop-ups are relevant. Offering a free consultation is a great way to collect leads. Allow your visitors to sign up for the services online — today, very few businesses do this.

5. Streamline Communication

As you will communicate with customers by phone and email, optimize both formats. First, set up a dedicated phone number and professional voicemail. Secondly, create email addresses linked to your website domain. This conveys security and legitimacy.

6. Prepare Your Employees

The quality of customer service is crucial for your reputation and bottom line. Your employees must be knowledgeable, professional, and responsive to queries. To ensure customer satisfaction, pay attention to the following areas of expertise:

  • Phone Communication

Create phone scripts for typical scenarios. This way, your team will know what to say even when the question is beyond their field of competence. Customers should never get the impression that your representative lacks training or professionalism.

  • Email Communication

Similarly, your employees should have access to templates for electronic correspondence. All emails must have a professional tone. They must be well-structured whatever the subject.

  • Access to Customer Information

Your employees must know how to use the client database. Modern software makes this easy. When a customer calls your firm or sends an email, the staff will identify them using the database.

7. Comply With the Law

Operating without a business license is illegal. Different states have different regulations regarding bonding and insurance. Research the local rules and comply with all applicable requirements.

Pay your taxes on time. If you do not have any experience running a small business from home, find out as much as possible about the procedures. If you miss payments, you will be penalized. You need to make them every quarter.

Comply With the Law

The Bottom Line

As the owner of repair business, you will be helping customers correct credit reports and raise scores, so they can access more affordable borrowing. Getting started in this business is not complex. Create a team of professionals, become certified and licensed, purchase the necessary software, and create a solid presence online. As scores are difficult to repair without assistance, demand is guaranteed.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.