Part Time Credit Repair Business

Details of a Part Time Credit Repair Business:

With a little bit of digital marketing, knowledge of how to use a computer, and some coaching, you can start your own part-time credit repair business! By marketing a service of fixing consumer credit scores you can turn a side gig into a full-time job.

The changes in the American economy over the last 2 decades have created a huge market of consumers in need of help with their credit reports and increasing their credit score. As a result, many people have decided to look into starting a part time credit repair business.

A Home Based Credit Repair Business

We were not going to refer our valued clients, associates, and friends to a company that was less than solid. The company we represent has been in business since 2004. They have served hundreds of thousands of clients. The company has maintained the same principal leaders since the beginning, and the company is debt-free.

The Business Model

This is a direct sales opportunity. In the field, we are Independent Agents. It's very similar to the relationship between a State farm Insurance agent and State Farm. We market and sell the services while the parent company and its partners deliver the services to our clients. They also provide the entire technology infrastructure and customer support. The biggest advantage this business model offers is the ability to add Agents into your business. Much like an insurance or real estate broker, we can bring on Agents to increase our business. And, we can add those Agents anywhere in the country. So, it's possible to build a nationwide credit repair business from your home office as we have done.

Residual Income

As you grow a credit repair business with this business model, you develop recurring revenue and residual income. Again, comparing this to the insurance industry, we get paid every month that a client stays on service. We not only get the revenue from these past clients but we also get new revenue generated by our Agents every month.

Important Questions to Ask Yourself

Start for Less Than $300

But you can’t spend a lot of time or money starting your part-time credit repair business because it’s, well, part-time with part-time income.  You need a business that’s set up and ready to go with customer support, websites, marketing materials, and videos, and everything else you need. You most likely don’t want to spend the money to purchase a surety bond that might be required by your state either.  And, wouldn’t it be great to start today for less than $300?

It's a Great Business But...

Just like any other business, there are challenges. If you have never attempted starting a credit repair business before there is a lot of information to gather and knowledge necessary to do it the right way. The credit repair industry, like many others, has a high percentage of people that start the business and quit within the first year. Why is that? And how do you avoid being one of those people?

Here are some details that you should consider.

Laws and Licensing

There are no licenses you need to have to be in the credit repair business. However, you do have a few laws you must consider. And, these laws may be different in each state. The Credit Restoration Organizations Act (CROA), a federal law, states that a for-profit company cannot charge fees before performing credit repair work for a consumer. Although many have come up with creative ways to deal with this law it will affect cash flow for a new business owner. However, attorneys, banks, credit unions, and 501(c)3 non-profit companies may charge upfront fees. They are exempt from CROA.

In addition, certain states require surety bonds up to $100,000. Bonds will run you between a few hundred and a few thousand dollars every 2 years depending on the surety amount and your credit score. Yes, credit score affects just about everything.

Fees for Service

In addition to deciding how you are going to charge for your credit repair services (if you cannot charge upfront how are you going to charge?). You must also decide how much to charge. Gone are the days when you can charge $1,500 to $5,000 for credit repair services. There are established, reputable companies that charge $90 to $125/month for a very effective service. You’ll have to compete with that when starting a credit repair business.

Initial Investment of Starting a Credit Repair Business

There are typically two ways to go with starting a credit repair business. The first is to purchase all the necessary components such as software, a web site, legal documents, training, etc. separately. We’ve estimated this cost to be about $10,000 in the first year although these items can be purchased on a monthly basis. The other way to go is to purchase a franchise. The investment in a credit repair franchise is between $19,000 and $25,000. Don’t be discouraged if you do not have $10,000. We will give you a third alternative below that has a start-up cost of less than $300.00.

Technology

Consumers today expect that a company will have technology in place to allow them to stay in touch and keep track of what’s happening with the progress of their credit repair process. You must provide your customers with the ability to check the status of their accounts online to be competitive in this industry. Doing this as a solopreneur may be an expensive and daunting task.

Skill Sets

If you're doing it alone in this business you have to be good at three things, marketing, sales, and administration. You have to be a good marketer. Selling your credit repair service to friends and family may get you started but you must position yourself as a credit repair expert in your area. You have to get the word out in the community by developing relations with other business professionals that may have clients that need your service. You must have an online presence as well. Not just a website but the ability to drive traffic to your web site. You need to have leads coming to you every day.

Then you have to be great at sales especially when you’re new because you have no track record or credibility to fall back on. You have to sell against local and national companies that your prospective customer is going to contact as well. Even if your company has the same credentials and advantages as other companies how good are you at selling and closing sales?

The Final Word on Skill Sets

Lastly, you have to be good at credit repair. Can you pull credit reports (credit report brokers don't want to supply credit repair companies) and analyze those reports. Do you know how to advise the client as to the probability of removing all types of items (foreclosures, liens, charge offs, medical bills, repossessions, late payments, and more)? You then have to know the correct dispute codes and reasons that a credit bureau will open a dispute about these items. Then you have to track this information and be prepared to challenge each item multiple times for a client. This is no easy set of tasks.

Time

You have to have time to do all that is stated above when starting a credit repair business. Credit repair business owners can't find time to develop new customers because they are doing credit repair work for their existing customers. Or, they can’t find the time to service the customer because they are trying to develop new customers.

An Extra $500 to $1,000 a Month Can't Be Bad

Statistics tell us that the majority of people with a 2^nd income or looking for one want to earn around $500 a month extra. If you can get just 5 new customers a month you’ll earn $500 a month from those sales. Plus you’ll be building an additional residual income that will keep coming in month after month from your previous sales.