There are thousands of potential startup business ideas out there but too many of them have restrictions like needing to carry inventory to sell or maintain a storefront, but here's an idea that will almost always be in demand that you can start today for almost nothing: Credit Repair Counseling.
We're not here to make any endorsements about any one particular service vs another and frankly this industry has a lot of shady folks and by nature of the business ... you aren't dealing with folks in the best financial condition. However, for someone who is smart and has good people skills, working with others to help them repair their credit and dig themselves out a hole can be something very rewarding.
There are currently more than 40 million people in the United States with subprime credit. Even if you have excellent credit, you probably know someone who doesn't—or perhaps you fall into that category yourself. Maybe your friend has trouble establishing a credit history because of student loans or past mistakes like bankruptcy or underemployment. Maybe your colleague just got married and is making a big move as part of their new life together. Whatever the case, people with bad or non-existent credit need help to rebuild their score to get an apartment, lease a car, or buy a home. So what exactly does this have to do with starting your own business? Well...a lot, actually! Reason to find out how you can start a credit repair business from home.
Understand Credit Repair Laws
Understanding the laws surrounding credit repair is essential, especially if you plan to charge for this service. Familiarise yourself with the Credit Repair Organizations Act (CROA) and the Fair Credit Reporting Act (FCRA) to ensure you are aware of consumer rights and business obligations towards clients.
Understand the Basics of Credit
To truly understand how credit repair works, you need to know what it is and how it works. It is important to remember that your credit score is just a number—a number that does not accurately reflect your financial situation or your ability to repay a loan. A credit score is calculated using various factors, such as payment history, the amount of debt you currently have, and your overall credit utilization. Some people mistakenly believe that making sure your credit score is high is the key to financial success, but that's not true. Credit has very little to do with how much money you have. Instead, your credit score determines how much money you have to repay. Your score determines how much you will pay for goods or services, the interest rates you will pay on any loans, and even how much you will be paid for your labor.
Register Your Business
If you are going to offer credit repair services, you will need to make sure you have the proper business credentials. Depending on the state where you operate, you may need to obtain a business license and hire professionals like an accountant and a lawyer to help you with the proper legal paperwork. Registering your business with the FTC and the BBB is also a good idea, especially if you plan on offering your services online.
Set Your Fee Schedule
If you decide to start your own credit repair business, you can expect to see a wide range of different clients walk through your door. This means that you will have to decide how to price your services. Many credit repair companies use subscription-based models to allow for recurring monthly fees, and these fees can range anywhere from $19 to hundreds of dollars per month, depending on the work required. Make sure you have the correct billing solutions for credit repair businesses ready to kick off your new business on the right foot.
Marketing
Marketing is one of the most important aspects of starting any business, especially a credit repair business. To grow your business, you must get the word out there and tell people you exist. Nowadays, social media is the quickest and easiest way to reach more people, and the best part is you can get started for free. Other options include billboards, media advertising, SEO, and partnering with local businesses, to name a few.
Key Takeaway
A career in credit repair allows you to help people and build your own business at the same time. If you're still working at a desk job and dreaming of a more fulfilling career, it's time to start thinking about the steps you need to take to begin your own credit repair business. With a few simple steps, you can be well on your way to launching your own credit repair business. Now is the time to get started!
