Learn start a credit repair business.
Credit repair is the process of disputing reported information, identifying errors and monitoring credit bureaus for report corrections. Individuals and businesses solicit the help of credit repair services to improve their credit scores. The process includes setting a plan to eliminate debt and revise spending habits. Starting a credit repair business doesn't require a large start-up cost and is simple to start.
Instructions
1. Write a business plan. Include a company mission statement, financial plan, business forecast and marketing analysis. Choose a business name. Register your credit repair business as a sole proprietorship, partnership or limited liability company.
2. Research the congressional laws governing credit repair services. The federal government requires credit repair businesses to follow a substantial amount of laws for credit repair businesses. For example, credit repair businesses cannot charge clients for uncompleted work. Study the information given by the Federal Trade Commission. The Fair Credit Report Act and the Federal Fair Debt Collections Act are frequently used to fix clients' credit. Learn use these laws to remove outdated items and repair mistakes on a credit report.
3. Create a price list. Some credit repair companies charge per tradeline that is fixed. Others charge a monthly fee or total amount for removing credit report problems. However, most companies charge based on their timeliness and effectiveness in repairing the customer's credit. Check with local competitors to learn about their rates.
4. Apply for your business license. Register for business tax identification numbers. Determine what additional licenses may be needed for a credit repair service. Check with your state's consumer affairs department or secretary of state for license information.
5. Purchase office equipment. Include a fax machine, telephone, computer and Internet service. Establish a merchant account if you plan to accept customer payments online or over the phone.
6. Market your business. Advertise in your local newspaper and other publications. Establish a website with listings of your services and products. Alert family, friends and acquaintances of your new business.
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