How to Successfully Start a Credit Repair Business From Home | An Actionable Guide for Entrepreneurs
Do you want to work from home?
Are you considering starting a credit repair business?
If so, we have great news. You have just found the most definitive completely free guide to getting your business off the ground.
This is your foolproof strategic step-by-step actionable blueprint to success.
Here’s the deal:
It is going to take some planning, determination on your part, a lot of hard work, and most importantly a clear and concise roadmap on how to do it.
And you’ve just landed on your roadmap!
Our roadmap is filled with over 15 years of knowledge and experience in the industry. We promise to give you some amazing tips and tricks that you never knew about. And we’ll give it to you straight, The good, the bad and the ugly.
If you are going to have a successful business, you must make sure you are truly ready to dive into a credit repair business,
Let’s quickly try to assess that!
Is a credit repair business really for you?
Do you have the right reasons to want to open a credit repair business?
If the answer is yes:
We are going to show you step by step on how to start a successful credit repair business in this guide.
Again, you want to make sure that this is the type of business that you really want to open.
Before we move on, let’s make sure if this is for you.
If you have any of the following reasons listed below for opening a credit repair business from home, then this is probably the right choice for you if you:
You already have some familiarity already with credit repair. Of course, if you want to get into the industry, you should have some understanding of how credit repair works. You should also be interested in the vertical as well. If not, you are definitely willing to learn.
Doing hard work that truly means something is important to you. You get to work every day helping others to improve their financial lives. That makes for an amazing job. You will also be helping consumers with something that is their right by law.
You want to create your own schedule and hours and you are tired of overworking yourself at your current job. When you start a credit repair business from home, you get to decide when you work and how long you work each day.
You want more flexibility in your life. Are you tired of missing family events because of work? When creating a credit repair business, this does not have to happen anymore.
You’re excited at the possibility of having unlimited growth potential. People all over the world need help to repair their credit and this will never change.
You no longer want to have to commute and you want to save money on renting an office.
You have some marketing experience or you have a desire to learn.
You’re not afraid of hard work and working long hours, in the beginning, to get your business off the ground
These are just some of the many reasons why people decide they want to open a credit repair business.
If you fall under any of these categories or you have your own reasons for starting this type of business,
Let’s keep this real: Starting a credit repair business is a lot of work. Many individuals that do not go into this business with realistic expectations fail.
Many do not understand the initial investment involved or the time that they need to put into this business.
You will need to do a good amount of studying to become an expert in the field and you will need to learn how to market in a competitive landscape.
If you are willing to do that, you will succeed. Don’t worry, we will cover how to overcome any obstacles right here and right now in this training. If you follow along step-by-step, you can build a lifelong business that you will come to love.
Let’s dig into the awesome benefits:
What are the benefits of opening a credit repair business?
In addition to knowing what reasons you have for opening this type of business, it may also be helpful in your planning to know what benefits there are when operating a credit repair business.
A credit repair business can be very profitable. Check out this really cool credit repair business calculator that gives you a good benchmark to see an estimate of what you could be making and with how many clients.
Credit repair is recession-proof. Whether the economy is doing well or really bad, consumers will always need credit repair help. This will give your business the opportunity to have continued revenue. People all over the world continue to need help repairing their credit. This is not going to change.
You get to help people. It is a struggle to have financial issues. It causes stress, anxiety, and overwhelming feelings. By helping people to repair their credit, you can help to take these feelings away.
Self-growing business. Once you help someone, they are likely to refer you to other people in their life who need to repair their credit. While this is not to say that you won’t need to do any marketing, your business will basically grow on its own.
It is a semi-residual business. The average client stays in a credit repair program for 7 months. You can also upsell clients during that time and offer them maintenance packages when they want to leave the program.
It is relatively inexpensive to get out of the gate so can you start on a shoestring budget.
If you like the sounds of these benefits, it is time to start learning how to start building your credit repair business from home.
Step by step actionable tasks to starting and building your credit repair business
Now that you have made the decision to open up a credit repair business, it is time to carry out the tasks step-by-step to make this happen.
Having a business plan
We highly recommend starting with a business plan. Many companies are formed without much thought behind them. Your chances for success will be multiplied if you set up a good business plan.
There are a few options for going about this and there really is no right or wrong way to do this.
There are essentially two different types of business plans.
One option is a traditional business plan which is essentially very detailed
If you have the time to do it on your own, we recommend this option. We also recommend this option if you are considering getting funded by a lender either in your startup or at some point.
Here is some great simple information on business plans from the small business administration.
Here is a downloadable relatively simple sample business plan.
Another option is a lean startup business plan
Some variables for choosing this option may be that you have a good amount of experience already or perhaps you have run several businesses before and you have a strong understanding of credit repair. In this scenario, you can just simply write what we call a lean startup plan.
What your business plan should include
No matter which option you choose from above, here are some key factors that your business plan should include.
The more of these marketing points that you master, the higher your success rate will be.
If you are overwhelmed, take baby steps and start with just one thing. For example, start with the first tip listed above and
write down all of your reasons for getting started and what will make your service unique.
Getting a business name and entity formed
There are 2 parts to this, which some people get confused with.
We highly recommend that you create a business entity as an LLC or corporation, preferably an LLC for now, and then you can create a “doing business as” name underneath that.
You can name your LLC anything.
An example would be “Premier Holdings Group LLC”. Then you could make your business name whatever you want for your website. An example would be TheScoreBusters.com. TheScoreBusters.com would be an entity that you own underneath “Premier Holdings Group LLC”.
You can build other websites with different names as well, so you can have other entities under one roof.
The company itself is its own entity and is not a part of your personal finances or assets.
If you don’t create an LLC and you run your business as a sole proprietor, any liabilities or anything that might go wrong would be on you personally.
It’s just not smart business because anything can go wrong and if it does, you do not want any liability.
There are literally dozens of places online to create an LLC.
Be careful when you form your entity because many online companies initially say that there are no extra fees but as you fill out the forms and information they keep trying to tack on additional fees.
What you initially see is not what you get.
Choosing a State for Formation
Although we will not recommend an actual state where you should set up your LLC, most people usually set it up in their own state. We will tell you, however that there can be advantages to setting up your business in other states. Some states have tax advantages. Nevada, Delaware, and Wyoming are 3 popular states for setting up your entity for tax reasons and other advantages.
If you are unsure of where to set up your entity, ask your accountant.
Getting an EIN number
An EIN is your employer identification number (also known as a federal tax identification number) and it is simply used to identify your business entity. If you use our recommendation of Inc. Authority they will go through the whole process and get you an EIN number.
If you are setting up your entity on your own, you can go to IRS.gov to apply.
Where do I get my LLC entity formed?
Again there are many options online, but we recommend using Inc. Authority because they are always 1oo% free. You only pay the required state fees.
When choosing a business name, it is a good idea to avoid names with the word “credit” or “credit repair in them”.
Some merchant accounts, lenders, and banks might label you as high risk and it may make it harder to get a merchant account with good rates.
The reason that a credit repair company is considered high risk is due to the fact that their customers sometimes default on their credit and debit card payments, which gives you chargebacks which banks do not like.
If you already have merchant processing in place, then you can skip this step. In any case, you should take your time to think about naming your business. Try to make it a brand double, memorable, and marketable name.
Setting up a bank account
Bank Account – You will need a new bank account for your new LLC or corporation. Many banks run offers for brand-new businesses where you can make bonus dollars if you spend a certain amount of money within the first 3 months. You can choose your current bank if you have a relationship with them or you can shop around for some good new business onboarding offers
Establishing credit – This may not be on your bucket list when you’re starting out, but we recommend that you try to open up a credit line or credit card with your new bank. If you have credit previously from any other businesses, you mail be okay with your chances of getting credit. If you have no established credit at all, the banks will look at your personal credit profile.
If your current personal credit profile is not that good, you can become your own 1st client! Start repairing your credit so you can get a reasonable score to establish business credit. We recommend the step highly as having resources to tap into is always positive for small businesses.
Tip: Do not pay for checks in a fancy binder at a bank. Buy your business checks online. You will save about $100.
Merchant Processing Account
You’ll need to collect credit cards to run your credit repair business.
Most people will choose their bank that they are getting their bank account from. But you could and should shop around for better deals and better credit card processing rates.
Many people also use PayPal as a and easy way to collect credit cards.
Some of the higher-end credit repair software programs will have integration with your merchant processing payment gateway.
Tip: Remember, credit repair is a high-risk industry in the merchant processing space. So you’ll need to find an account that works with high-risk accounts.
Local state laws, licenses and bond requirements
Click on the image above to search by state
This is an important step that we’ve seen some entrepreneurs miss when working from home.
We want to make sure that when you’re starting your credit repair business that you are fully compliant with the laws that essentially govern the credit repair industry in the US.
The Credit Repair Organizations Act was created to protect consumers by not allowing credit repair entities to make false claims about their services.
Local laws by state
One of the most common laws by state disallows the credit repair service charge clients upfront before any work has been started on.
You should understand and have a pretty good familiarity with the laws which your business is operating in.
Here is a great starting point for you to look up each state quickly and easily.
Using the link above, you can also find the statute of limitations and any state requirements for a credit repair license.
Meeting All Regulatory Requirements
There are a few regulatory requirements that you should know about right away.
Becoming bonded and insured. You need to check on the regulations in your state to see what the bond and insurance guidelines are for operating a credit repair business. This varies a bit from state to state.
Getting a business license. If you are going to open your credit repair business, you need to have your business license before starting. Be sure to get this before officially starting your business.
This is not mandatory but we highly recommend joining this great non-profit organization so you can proudly carry the certification by the National Association of Credit Services Organizations.
We are not affiliated with this organization whatsoever, and their certification process is a little involved, but having the certification can help you stand out from your competition.
It is a good pitch for your clients too because the certification does cost you a fee and the organization as a whole was formed to protect the consumer by making sure that your company is compliant with the credit repair laws.
They advocate strict industry standards through their Standards of Excellence seal promoting compliance throughout the industry.
There is a $299 upfront fee and then a $49 per month membership fee. You can learn more here.
If you are staring up on a shoestring budget, you can skip getting your Nasco Credit Certification for now.
We suggest that you at least familiarize yourself with the Credit Repair Organizations Act.
As your business grows, you can then re-consider joining Nasco.
Get set up with credit repair software
If you are going to start a credit repair business from home, you are going to need the proper software. You can’t run this type of business without credible software. Choosing a good software will help you with customer relationship management, staying organized, automation, payment gateways, and much more.
Before we get too deep into this, let us just tell you right now our number 1 recommendation. It’s Credit Repair Cloud. The reason is that this software literally has everything built into it, including a robust manageable website.
If you want to see all of the credit repair software options, click here.
Whichever you choose, you’ll want to find software that has the following features:
Ideally has a payment gateway and a robust website
Has free support and training
Attracts clients with built-in marketing tools
Allows you to easily manage your contacts.
Helps you organize your clients and brings in results quickly
Allows you to track the progress of each credit inquiry
Has a website builder inside the program
Once you have found the right credit repair business software, you can move onto the next step.
Do I need to use credit repair software? No. You do not have to use software, Some business start out on spreadsheets or other customer relationship management tools.
Using software has many advantages including the organization of clients, automaton to save time, pre-built customizable dispute letters, credit report reporting, payment and invoicing integration, and scalability for growth among other features.
Is there free software? Not that we know of. But if you do not see the value of the features of software or if you are on a really tight budget, you could start out with a free project organizer like Trello.
Professional Credit Repair Training and Preparing Your Credit Repair Business for Opening
Get Trained and Certified to Better Understand How Credit Repair Works
If you are going to operate a credit repair business, it is very important that you fully understand how the process of credit repair works.
Investing time before you open your business will help you to have a more successful business.
There are many different training materials and programs out there.
The credit repair training that you will want should include the following:
How to become a strong reliable, trustworthy and ethical business
Learning the basics of helping your clients in the various situations they may encounter
Learning all of the possible scenarios that you will incur with your clients
Learning and understanding all of the credit beauties credit card statuses and how to dispute them
Fully understanding FICO scores, their ranges, and minimums needed to get loans and credit
How to negotiate with companies that your client owes money to
How to generate leads, do sales, business development and client retention
Having a unique selling proposition to differentiate you from your competitors
These are some of the best things you will learn with credit repair business training. If you can learn all of this or even more, then you will be set to start getting your credit repair business ready to open.
See where and how to get training below!
The Credit Repair Cloud credit repair software has training that covers all of the above points.
Another great option is to take a self-paced training course to become a Board Certified Credit Consultant, and Certified Credit Score Consultant with the Credit Consultants Association (CCA). They are a trusted non-profit trade association. If you pass your test, you will get a certification certificate that is widely respected in the industry. It’s $99 for both certifications or $59 for just the Board Certified Credit Consultant.
You can also take an online 5-hour video course for $17.99. All of these options offer different materials and strategies, We recommend you doing all 3.
Preparing Your Credit Repair Business for Opening
Okay so hopefully up to this point, you’ve decided that you really want to work from home and you understand the benefits of working from home with your credit repair business!
You’ve created a business plan, formed your LLC, checked your state for its laws and requirements.
You’ve got your certificates, your software, and have gone through some training.
That’s great! That brings you up to date so far!
Starting a business can be daunting and not having mentorship can make it even more confusing.
So we highly recommend that if you’re starting a credit repair business from home…
Don’t try to do it on your own.
Why not take the fast track to success with free training?
This is really starting to get exciting!
You’ve collected a lot of information and hopefully, you have started some of the balls rolling.
If you want to get into an immediate training class and learn how to can get started quickly, click here.
You will learn how to get started, how to easily get leads, and how to market your business in this free video with Daniel Rosen.
Daniel Rosen is a credit expert.
Remember having mentorship will increase your chances of success.
Otherwise, let’s proceed with our other action items!
In order to have a successful credit repair business, there are a few other things that must be done first.
Make sure any employees that you will have (if any) sign non-disclosure agreements and make sure they are all trained, as well.
Determine which payment arrangements can be made by your clients.
Determine what type of payments you will allow. PayPal, debit cards, and banking accounts are all common options.
Create a client agreement form that keeps your business protected and helps to show your client’s your business is reputable.
Once you have done these things, it is time to move your credit repair business a little further down the line.
It is time for you to build your website.
Building a Credit Repair Website
Note: Some credit repair software comes with a website
You are going to need credit repair software to run your business as we’ve covered previously, and some of the really good ones like Credit Repair Cloud offer a complete business in a box where you can make a really gorgeous website easily with the software.
If you go that route, you can skip this step.
If your software does not come with a website, you can follow the steps below so you can get online as quickly as possible.
Model other sites
Take your time first and scour the Internet for other credit repair websites that you like. You can also search other similar sites in your vertical. For example financial websites, lending websites, professional consulting websites. It doesn’t really matter, you’re just trying to find a style that you really like so you can either try to create one on your own or show a developer.
Planning is crucial at this stage
You want to make sure the credit repair business website that you create is going to attract potential clients and even convert their visits to the site into sales for your business services. (You do not want a website like the one pictured above) LOL
Do it yourself
There are dozens of web platforms where you can build your own website. One reason that we would not fully suggest this method is because you’ll be tied into a monthly payment, and on some of the sites you may not actually own your data.
Having someone create a site for you
If you’re not very tech-savvy then obviously it may be best if you hire a website designer to create a website for you.
But a couple of other advantages of having someone create a site for you is that they can put it on WordPress which is a free open-source platform and you will have the flexibility of brainstorming with someone that knows what they’re doing and developing your website to its fullest potential.
There are certain things that your website should feature (besides a clean professional design)
A portal so that your clients can sign in and see their progress
Very simple and clear call to actions to get your clients to do what you want.
An informational blog is very helpful in generating leads and customers. We’ve seen many entrepreneurs not create content. Make sure that you build content on your blog
Free consultations. This will give you client information and help you to determine how interested a client is in your services. Also appropriately timed and placed pop-ups. These should be offers, not ads.
Leads tracking and lead capture. The website should have a sign-up feature for clients, so you can track who is interested in your services. You’ll want to collect their emails so you can retarget them with email marketing.
Hosting | Getting your website live
You will need to buy a domain name with a registrar and then set up your site with hosting. Make sure that whether or not the credit repair software that you’ve chosen offers domain purchasing and or hosting. Some offer both. If they do know you can skip these next few steps. If they only offer one or the other or neither, read on below.
What is a registrar?
A registrar is simply an online service where you buy your domain name from. Typically domain names cost around $11.99 year. One of the most branded registrar companies is GoDaddy. Think of your domain name as the same as when you registered your LLC business name. It’s just a name that has to be registered somewhere.
What is web hosting?
Hosting is simply a company that puts your website on their server and displays it to the world. Think of buying a new TV. The would not show you any images, channels, or movies until you purchased a provider like Verizon or Netflix. So hosting is simply a provider. Hosting typically costs anywhere from $3.99 a month upwards to several hundred dollars depending on how big your website is. But for the most part, when just starting up, you should only need a small plan.
We recommend using companies that have the registrar and hosting under one roof. It’s just easier for management, but it’s not necessary.
After your credit repair business website has been finalized and created and you are online, you get to determine how clients will communicate with you.
Preparing for Client Communications
You get one chance to make an impression on any given client. You want to make sure you are ready to allow them to communicate with you. In order for them to do that, there are certain communication methods that you may want to consider or set up.
– Voicemail for your business. If you are going to successfully operate a credit repair business, you need to make sure that you have a business voicemail. It won’t look very professional if you are giving out your personal phone number for business purposes. In addition, if you don’t have a voicemail set up at all, this is going to look very bad to your potential clients.
– Using a business email address. For reputation purposes, it is important that you create a business email address. This should have your business domain name in it, not Gmail, Hotmail, or yahoo.com.
– Utilize the software you got for your credit repair business. The software will inform you when you need to contact each client based on credit inquiries. It will also allow you to export your contacts into an email list. This way it is easier for you to send out newsletters and important information regarding your business.
These are some of the things that you will need to do if you want to improve the communication between you, potential clients, and even future clients. After you have set all of these things up, you will need to make sure any employees are trained.
Training Your Credit Repair Business Employees
If you are going to have any employees working for your home-based credit repair business, it is important that they are all properly trained. Certain training methods should be incorporated to ensure they are a good fit for your business.
– Proper phone etiquette. You need to make sure that your employees are able to work with a phone script if you have one. Even if you don’t, you still need to make sure that your employees are able to be respectful and considerate of your clients when they are speaking to them on the phone.
– Proper email communication. You might have some templates that you use for emailing potential and current clients. If so, make sure your employees know about these. If you don’t, make sure your employees know what type of information they should be sending in the emails to potential or current clients.
– Database. You will also want to make sure each employee is familiar with the software that you use for your credit repair business. Make sure they know how to track information, send inquiries, etc.
– Credit repair knowledge. Each employee that you have working for you should also be trained on the credit repair process and what is involved in credit repair (great credit score, negotiating with debt collectors, etc.)
After you have created a training program and trained any employees that you currently have, you will need to make sure you are meeting all regulatory requirements.
This happens to be one of our favorite subjects. We touched on it a little bit earlier when we talked about having a business plan.
But let’s dive into a little bit more depth here.
We will be discussing digital marketing as a whole, but more specifically we’ll touch on email market and retargeting, social media marketing, media buying (running ads), and some SEO.
When you get your website entity up and running we highly recommend that you either learn how to do as many aspects of digital marketing as you can or if you cannot initially learn how to start outsourcing personal assistants effectively (and on a budget too!).
One of the common mistakes we see is that people build their websites in the hopes that people will come and they do not do any type of marketing for their business.
Don’t do that, put some effort in and you will see the fruits of your labor over time.
The good news is that even though you may think credit repair is an extremely competitive vertical. There is still plenty of room for you to do marketing on your website and capture a market share in your space.
We have been in this vertical for over 15 years and have seen 100’s of companies that do not work on growing their business through digital marketing channels.
Trust us, the more that you put in the more that you get out. Especially when your competitors are not.
The 1st step that you should take is to create a Gmail account.
Then create a search console account and attach your website to the Search Console. This is where you communicate with Google.
Set up a Google Analytics account
Set up a Google my business account and add your business pertinent details.
Create Social Media Accounts
You can start with the main ones, Facebook, Twitter, Instagram and Linked-in.
If you are strapped with time in the beginning or are just overwhelmed, at the very least create a Facebook account or add a business page to your personal account.
Payroll – Payroll companies are relatively inexpensive these days. It is recommended that you use a payroll company even if you are on your own. This will reduce stress-free when it comes to paying your own taxes at the end of the year. As a business owner, especially one that operates out of your home, you should be paying quarterly taxes. Put this on your calendar, so you don’t end up running into any problems in the future.
Some of the credit repair software that we recommend, has some bookkeeping features in the software. Otherwise, it is recommended to get a bookkeeper to at least be your books quarterly and get them ready for your accountant. If your savvy on this and you can absolutely do your own bookkeeping.
If you have an LLC or corporation we highly recommend that you use a real certified accountant. There are legal advantages as well as protection for your company when using a CPA. Even if your revenues are not that high in your 1st year, it is always a strong idea to hire a real accountant.
This about sums up the process of starting a credit repair business from home.
Hopefully, this all helps you to get your business ready and started.
Best Marketing and SEO tool
With this tool, you can see so many valuable metrics about where you stand in the SEO and marketing world.
You can set and see valuable benchmarks about how you stack up and compare to your competitors.
Some of the many features include viewing at a quick glance all of the keywords you are ranking for in the search engines and then having the option to quickly compare them to what your competitor’s keywords are.
This tool is so many features, so we will keep it brief.
One of our favorite features is that you can spy on your competitors and see what they are doing with their ad spend.
When you test drive the tool by inputting your URL into the form below, you will be asked to sign up to get 10 free searches for competitors. There is no obligation, and you can stay on the free version for as long as you like.
But unfortunately you do have to opt in to make your free searches.