How to Become a Credit Repair Service Company
Many people want to buy homes and cars and find a job. In many cases their credit score will determine whether they get what they want. Many consumers are not aware of how to fix errors on their credit report or start rebuilding their credit. You can start a business repairing people's credit, which can help them and you.
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Instructions
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Legally structure your business. Seek the assistance of an accountant or a lawyer to determine which business is best. You can operate under a C-corporation, an S-corporation, or a limited liability company (LLC). Establishing a legal business entity protects your personal assets from being seized in the event of litigation and also, due to the laws in your state you may have to operate under a specific entity or hold licenses considering you will be privy to your customers' Social Security number and credit profile.
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Determine what licenses your state may require state to provide the service of credit repair. Some states don't. Check the websites of your state's secretary of state or consumer affairs department.
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Study the Federal Fair Debt Collections Act and the Fair Credit Reporting Act, which are available at the Federal Trade Commission's website (ftc.gov). You will be using these laws and rules to fix your customer's credit. Check the website for changes, too.
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Choose how you will charge your customers. Some credit reporting agencies charge per trade line on a specific account that is removed and/or fixed. Some charge either a monthly fee or one lump sum for removing problems from a credit report at the time of purchase. Many credit repair companies charge based on their effectiveness and timeliness of repairing the customer's credit. Check with competitors in your area to find out their rates.
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Discover ways to provide your service. Some companies repair their customer's credit strictly online, which means they do not have to see their customers. Some have an office where they meet customers.
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Purchase necessary office equipment. Include a computer, high-speed Internet, fax machine, business telephone number, and merchant account. A merchant account is important if you plan to take your customers' payments over the telephone or online. You can apply for a merchant account at a local bank or online.
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Establish a website for an online presence.
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Tips & Warnings
If you have no experience in credit repair, you may be interested in purchasing a credit repair franchise. This route requires an upfront payment.
Though not necessary, you can purchase credit repair software to keep up with your customers and to draft letters to credit bureaus and creditors quickly.
