By Amber Hayden
So you want to start a credit repair business?
Starting a credit business is easy and a lot simpler than you think. It can be extremely lucrative and has a very low start up cost. All you need is a phone, a computer with internet access, an email account and a word processor program. If you have a smart phone this could be helpful to place reminders for your clients. So many believe that they need a credit repair software program to start and manage their credit repair business. This is not true but you can purchase this much later when you have successfully helped enough clients after your initial training to afford the software. I actually recommend that you get excellent training prior to purchasing software to run your business and this is a must in my opinion. Why should you wait? It usually create MORE problems for consumers with untrained people using software than it helps. YOU MUST GET A FOUNDATION e.g. Advanced training prior to getting software in order to control it.
The software is NOT the problem but how they are used. You see, a credit repair software program CAN NOT Think for you and if you rely on it to do the job of disputing credit issues, it can actually hurt consumers. But many are using software as their first source to starting a credit repair business before they are trained to do the work. This is because it seems easier to just click buttons to do the work but it can be extremely damaging and difficult to a client’s effort to resolve their credit problems.
Credit bureaus have caught on to all of these software programs and NOW you have computers that are recognizing computers. This means that if you submit a dispute using a software based generated letter even with a few changes, the credit bureaus computers will recognize them and can stall your efforts to resolving credit problems. Also, they will place a flag on your account that you are attempting to repair your credit using a credit repair software. Yes, you can get them to respond and it is within your right, but they have the right to reject what they consider frivolous claims. Why go through that hassle and time when you can get it right from the beginning.
If you want to start a Credit Repair Business and be successful, you must separate yourself from all of the nationally advertised firms. You must offer a personal service type of brand in your credit repair business. This is because you won’t be able to compete with the big dogs that advertised on the radio and TV otherwise. Many consumers right in your community will feel more comfortable with you instead.
A credit repair company can make from $500 to $6,000 per month for the average person working from home part-time spending about 20 to 30 minutes per month for each client. You will at least this much time to evaluate a credit report and produce a plan to boost your client’s score in the initial stage. If you are above average, you can earn from $10,00 part-time and up to 75,000.00 or more per month full time. Yes, this much! Now think about this, where can you earn an additional $1000 per month with little effort and time for a start up company that will cost under $300 to get started? Many software based companies say that you can spend 5 to 15 minutes per client but this is NOT enough time to offer the credit repair personal touch service that you will need to be successful in this climate.
The big dogs already have this computer based service and account representatives that has so many clients that it is hard to feel connected. Therefore many consumers who don’t know where to turn to for personal services are feeling as if they are a number among many. However, if you offer the same quality service with a personal touch in your community, your business will soar.
Some credit repair companies charge $49 to $99 per month for their services. However one of the most successful method is to charge per deletion or per points increase. For example, some charge $85 per deleted item off a credit report for each account deletions and $50 per non-account deletion. Some add more for deleting collections or public records accounts. Some just charge the flat $85 for all items.
Let’s say you have one client and they have Five (5) challengeable accounts on their credit reports and 3 non-account items. You can earn up to $575 with that client: 5 x $85 and 3 x $50. This client will happily pay when they see these results. You can ask for an escrow payment to hold a portion of the funds to be received until the service is rendered. As service is performed, you will get paid. Just having two clients per month will earn you over $1000. Because most clients will have at least 7 to 15 accounts issues.
What if you have three clients per week? This is where you can earn over $6000 per month part-time. You will spend no more than 2 hours per week working on each new client and about 5-10 minutes per old client getting paid for another round of deletions until you complete them.
Here is an example: Say that you have 10 clients for one month. I like to be reasonable because many small based credit repair companies working from home can easily get 10-20 clients per month. Normally they will have 7 challengable accounts items on their credit reports. If you delete 3 items for all clients credit report that’s 30 x $85. You will earn $2, 550 but still have more to earn for the next rounds of challengeable items. Without getting a new client you will still earn another $2550 off the same 10 clients and depending on their accounts this could go on for about 3 to 6 months. The key is to keep adding clients and watch your income soar.
One does not need a special license or a degree to start a credit repair company but there are rules for each state. A good training source will provide this information.
I would get my training from a source where credit repair training is their primary business model. They are not attempting to sell you software or anything but provide you with a solid foundation on the process of being a successful credit repair consultant. It is a great idea to get certified so that the public will have the confidence that you can do the job.
FTC and regulators recently stated that they want the credit repair industry to police itself because of past bad actors. However, so many are offering certification and training BUT are NOT concern about compliance or protecting the industry. Therefore a lot of people are now getting involved in this business without a clue of how not to cause harm to the public . If you are going to be part of the credit repair industry, align yourself with a non-profit organization that makes protecting the public and training their mission.
I am recommending The Credit Consultants Association, Inc. They are a non-profit organization offering excellent advance training certification in starting a credit repair business. In addition, they are like the better business bureau of the credit repair industry collecting and resolving complaints from the public. Also they keep you abreast of various industry changes . It is their goal to police the industry and provide their members with compliance information. You should start a credit repair business and get credit repair training from them.
There are some good packages available for software when you are ready to manage your business better. Some have cornered the market with their advertising and google searches but is NOT the best available package for growing companies regardless to their ads. Their packages are great from startups with only a few clients but when that company grows and has many clients, the packages becomes extremely slow and frustrates business owners. That’s when these business owners looks for other solutions or creates their own.
Therefore, after you have done credit repair manually and understand how this business works by getting real results, then you should get software to help manage your business. However, NEVER allow these software programs dispute engine do all the work for you. When their simple disputes works, use it but DO NOT throw away your word processor. Some challenges to credit bureaus and furnishers has to be customized for for each client.
To sum it up, I’ve looked at all of them and many are pretty and looks great and has many features. However, many are not as robust and safe once you grow. We have seen companies lose their data with one of the major ones, customer files mixing up when they have lots of clients.
Therefore, I really like. Credit Money Machine, Credit Money Machine Cloud and Credit Cloud Lite a scaled down and lower cost version of Credit Money Machine Cloud. It has been around for over 20 years and robust and never has a company outgrown these applications. There are some new packages on the scene lately and I will take a look at them and update this post accordingly.
Just make sure you get advanced training prior to purchasing any software program and DO NOT purchase a business program laced with software in the beginning. It is NOT cost effective for startups. Sales are very important to making money, but this is a personal business and people want results. You should make sure you know how to do the work prior to selling this services. The goal is to get training first to protect and this industry.