Things You Didn’t Know About Running A Credit Repair Business

Things You Didn’t Know About Running A Credit Repair Business
  • Opening Intro -

    More aspiring entrepreneurs are exploring new business opportunities.

    The rise of FinTech— financial technology— has created a paradigm shift in how people manage their money.

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For those with an entrepreneurial spirit and a passion for helping others reach their financial goals, running a credit repair business might be the right opportunity for you.

Here are five things you didn’t know about starting a credit repair business.

Certification Isn’t Required

There isn’t currently a certification requirement for running a credit repair business in most states. However, having strong knowledge of the credit repair process is essential for success. You can acquire this knowledge through online courses or books. You should take the time to pursue this knowledge before making a final decision regarding this opportunity.

While you don’t need to have a special certification, you are required to stick to the legislation put in place under the Credit Repair Organizations Act (CROA). In many states, you must also register your business as a Credit Services Organization and obtain a surety bond.

Take some time to research the requirements in your state before investing in this business venture.

Your Software is Essential for Success

A huge part of being a successful credit repair business is having the right software in place. This pertains both to the software you use to repair your clients’ credit, as well as the systems you use for your day-to-day operations.

When starting a business of this nature, your credit repair software is the top priority. You’ll want something that can help you automate and track disputes, and simplify the process overall.

Customer relationship management software is also vital to operating a successful business. Your success will depend on your ability to deliver results.

As many businesses use a recurring subscription-style payment, having a method by which to show your clients your progress is key. In many cases, you can get credit repair software that includes a CRM component.

Another aspect of customer relationships is getting payment software in place. You’ll want a system that can process recurring monthly payments, such as PayPal.

Finally, you’ll need tools to help you stay on track as a business owner. These could pertain to project management, daily planning, and productivity tracking.

You’ll Need to Create SOPs

Standard operating procedures (SOPs) are steps you take to do your work each day. Outlining a step-by-step approach helps you explore various strategies for correcting your clients’ credit. As a result, you’ll boost productivity and make your business scalable.

When you’re starting out, it might be hard to imagine ever having employees or a robust business. However, putting SOPs in place is going to streamline your credit repair steps so that anyone can step in and take over in the future.

Having these in place also helps you serve your clients better. It ensures that you’re following all the steps and gives you perspective to make improvements.

You’re Required to Work Before Billing

Putting a payment structure in place is a must for creating a successful credit repair business. However, this is where rules and regulations come in. The CROA prohibits credit repair companies from collecting payment before they conduct services. In other words, you won’t be able to demand a retainer before you start working.

Additionally, you’ll want to offer free consultations. By doing so, you’ll help generate trust with potential clients and build a strong lead base.

You should have a written contract in place with each new client to protect both your interests. Be sure to have your contract template reviewed to ensure it fits the CROA regulations.

other valuable tips:

It’s Like Any Other Business

While credit repair businesses are getting a lot of hype right now, it’s important to remember that it’s like any other business. If you want it to be successful, you’ll have to dedicate yourself to the task. It can take a while to get established, and you’ll have to work hard to succeed.

Draft a business plan and set some actionable goals pertaining to:

  1. when you’ll complete your education component
  2. setting up your website
  3. working with test clients to get testimonials
  4. getting software in place
  5. acquiring X new clients over time

Setting goals gives you the direction that will lead you to success when you run a credit repair business.

Image Credit: credit repair business by envato.com

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