How to Start My Own Credit Repair Business at Home
A credit repair business helps people who are in debt restore solid financial standing. Credit repair businesses are simple to start at home and you'll be helping people clear up their money woes. With a firm understanding of credit and how bad credit can be repaired, you'll be on your way to maintaining a successful new business. Being well-versed in credit bureau actions, credit scores and loan payments will provide a strong basis of information.
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Instructions
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Understand credit. Every time a bill or loan is paid, someone is sued, or bankruptcy is declared, a credit bureau organization records the transaction. Equifax, TransUnion and Experian are the three major credit bureaus that follow financial actions. Upon request, credit bureaus can supply a person's financial report and credit score. Credit scores are based on payment history. Higher scores indicate that the person is more likely to repay a loan or bill. Businesses contact credit bureaus to run credit checks each time you buy a new house, purchase a car, use utilities and open a credit card. If your credit is not good, you may be denied the purchase, credit card, etc.
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Set up your home office to include an up-to-date computer with Internet access and a phone. Consider adding a second phone line if your primary line is often in use. You'll want your clients to have an easy time getting in touch with you. Maintain typical business hours because you'll need to be accessible when the credit bureaus are open.
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Educate yourself on consumer rights and the Federal Trade Commission's guidelines on fair credit reporting for business. Attain the necessary licensing and bonding for your business. This information can be accessed via a range of websites, as guidelines vary by state. Expand your business by learning how to consolidate debt or providing credit counseling. Contact your local community college for available courses.
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Contact the credit bureau to find out more information about your client's credit report. Request additional information about the report's negative items. If there are inaccuracies, write to the credit bureau to dispute the erroneous part of the report. The credit bureau should respond within 30 days. If they cannot prove that the claim is accurate, it will be removed from the report, improving the credit score.
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Establish credibility by marketing your business in reliable ways. Advertise in your newspaper, hold seminars at local colleges and contact your chamber of commerce to be involved in business tutorials.
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References
- Photo Credit office image by Raimundas from Fotolia.com
