How to Open a Credit Repair Business

Honest credit repair firms can be helpful to consumers.

Credit repair businesses thrive during downturns in the economy. Widespread unemployment because of job layoffs often leads to credit problems as people fall behind on their bills. Many people are unable to prevent their credit from being ruined during the downturn, and once their finances improve they become prime candidates for credit repair. That creates obvious opportunities for entrepreneurs capable of providing credit repair services that are ethical and honest.

Instructions

1. Make a checklist for completing the tasks necessary for opening any new business, such as deciding on a business structure, choosing a location, opening a business bank account and applying for any necessary city, county or state licenses. Check off the tasks on your list as you complete them.

2. Study the Fair Debt Collection Practices Act. The act is a federal law governing the behavior of creditors and debt collectors as they attempt to collect debts. Gain expert knowledge of the act as you prepare to help your clients with credit problems.

3. Study the Fair Credit Reporting Act. This act is also a federal law and governs the collection and dissemination of consumer credit information. Gain expert knowledge of this document as you prepare to help clients make changes to their credit reports.

4. Study the Credit Repair Organizations Act. This federal law governs the behavior of credit repair agencies. Avoid committing violations that could lead to civil or criminal penalties by gaining expert knowledge of the act.

5. Open your business. Attract customers by placing advertisements on the Internet and elsewhere.

References

• Federal Trade Commission: Credit Repair

Resources

• Federal Trade Commission: Fair Debt Collection Practices Act
• Federal Trade Commission: Fair Credit Reporting Act
• Federal Trade Commission: Credit Repair Organizations Act