How to Start a Credit Repair Business

Helping others fix their credit history and get a new head start in their life is rewarding in many senses. While it's true that whatever you do could be done by the clients themselves, most people don't want to deal with the aggravation of talking to the credit bureau to fight changes and correct mistakes. This is where you come in as a middle man.

Instructions

Difficulty: Easy

Set up a Credit Repair Company in Five Easy Steps

1. Get a copy of your own credit report to study. You are entitled to one free copy a year, and there are three major credit bureaus: Experian, Equifax and TransUnion.
2. Learn as much as you can about the industry. You may be able to find free eBooks on the topic online or contact local banks for free workshops on how to repair credit. Also, consider talking to accountants and other experts that can guide you through the process as you start your business.
3. Contact local credit bureaus and credit reporting agencies to learn how to request reports and access information.
4. Understand your role in the process. Once you obtain the credit report, you can then work with the client to correct any mistakes, acting as the intermediate between them and the credit bureau.
5. Consider a franchise. Companies such as Credit Repair Business offer you the chance to get started with no money down and receiving extras such as a laptop, a free website, a credit coach and clients (see Resources below). This is a good idea if you have no previous experience and want a guiding hand through the process.

Tips & Warnings

• Set up a tracking system. Keeping control of the pile of papers required to handle a single case can get overwhelming quickly.
• Be wary of over promising what you can't deliver. As a credit repair company, you can't erase accurate reports that have been present in a credit report for less than seven years. You can only deal with genuine mistakes that may be ruining the credit history of somebody who actually never committed any of those mistakes.
• There are a lot of scammers that insist you should buy their software in order to start your own credit repair business. Be wary of such promises. While some software may make your work easier and more organized, the truth is that you don't need any additional items except a computer with Internet access to start this type of business. Your only true cost to run this type of business is the price of the credit report you must obtain for your clients.