How to Start an Online Credit Repair Company
Individual and business credit scores have been weakened across the nation, making a credit repair company an attractive option for entrepreneurs during the global economic recovery. Knowing how to start an online credit repair company can help you to take advantage of this rapidly growing business opportunity.
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Instructions
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Setting Up an Online Credit Repair Service
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Obtain relevant education and certifications. Since this will be your own business, these items are not technically requirements, but they can significantly boost your credibility and reputation in the marketplace. Consider obtaining a Bachelor's Degree in Management or Finance, and pursue certifications such as Certified Financial Planner (CFP) and Certified Personal Finance Counselor (CPFC) to help you to attract your first customers.
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Contact the three credit reporting agencies: Experian, Equifax, and TransUnion, and attempt to secure quantity discount agreements. Fees for obtaining credit reports will likely be the largest service related expense you will incur. Seek to establish a long term relationship with these credit report providers by making contact with a company representative and discussing any options the agency may have for companies such as yours that will be making regular purchases.
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Establish a credit counseling curriculum. Create a thorough credit management plan that can be used in full or in part with individual customers. Elements of this plan should include investigation of erroneous credit score information, prioritization of debts according to interest rates, and systems for creating payment plans. Include basic money managing principles, such as budgeting techniques and incremental expense tracking.
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Register your business with federal, state, and local authorities. Select and register your business name, apply for a Federal Employer Identification Number (FEIN), and obtain any professional licenses required in your state. Contact your local county clerk to obtain information about local requirements for tax registration, zoning ordinances, and any required premises inspections.
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Set up an informative website. Build the website yourself using a desktop or web-based publishing solution, or contract with a web development organization. Since you will likely be conducting consultations online, make sure that your website features adequate communication features, such as live chat sessions. Display information related to your services, prices, contact information, and track record, and consider adding a testimonial or two.
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Advertise your services online. Utilize web advertising services such as Google AdWords in addition to cooperative advertising techniques such as banner swapping. Create short television-type advertisements for inclusion in business and finance web video services. Create small, static ads for placement on websites featuring personal finance topics. Establish and maintain a presence on social networks such as Facebook to communicate more personally with existing and potential clients while receiving continuous individual feedback.
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Tips & Warnings
Consider purchasing Errors and Omissions insurance for your consulting practice to avoid potentially costly litigation.
References
Resources
- Photo Credit credit 3d sign image by onlinebewerbung.de from Fotolia.com
