Credit repair is one of the growing businesses, and if you have enough knowledge of it, you can start your own Credit repair garage, and this guide is all about it. Throughout this detailed post, I will discuss how you can start a DIY Credit Repair business with a few software and tools, a handy credit repair guide, and baby steps to begin with.
Be it buying a new house, paying your student debts, or getting a loan for your new venture, when it comes to credit business, your credit scores matter a lot. Most banks and creditors don’t prefer borrowers who have poor credit profiles or low credit scores.
While it is crucial to get high credit scores, a lot of people haven’t figured it out as a business opportunity. One of the main reasons for this could be a time taking process that most people want to avoid. But one thing for sure you can do is to start improving your credit scores first with our handy credit repair guide – Space Shuttle Strategy. Once you are confident with how the credit repair industry works, you can use DIY Credit Repair Software like DisputeBee or Credit Repair Cloud and automate the entire process.
Let’s understand how to start a DIY Credit Repair Business in a detailed checklist.
How to Start a DIY Credit Repair Business | A Handy Guide
If I have to list out the process of how one can improve credit scores, it should look something like this,
- Analyzing credit reports and removing anomalies
- Finding negative items to dispute
- Writing dispute letters to respected credit bureaus
- Following up with bureaus
- Disputing other items and repeating the process
Now, this is the basic credit repair cycle that works with most users who have low credit scores. But for a few, you might want to implement extra steps such as using a credit builder loan. If you want to understand this Credit Repair cycle in detail, you can check out our credit repair guide – Space Shuttle Strategy.
And once you are familiar with these steps and how to improve credit scores in a positive way, you can start a credit repair business.
One of the first steps is to research and educate about the credit repair business.
1. Research and Education
When starting a credit repair business, it is important to know the basics. For instance, there are three credit bureaus that influence credit scores: Equifax, Experian, and TransUnion. Each of these credit bureaus has its own process and reporting system. And when you are disputing negative items, you will need to check what credit bureau the item relates to and write a dispute letter to this specific bureau.
You can get your credit reports from each of the credit bureaus using their service subscription. One of the other ways is to get credit reports from Annual Credit Report, which is a website to get one free credit report every 12 months as per the FCRA laws. Another way to get a credit report is by using myFICO or Credit Karma. Personally, myFICO is one of the convenient options as you get monthly updated credit reports with a lot of other benefits, and it has a low subscription tier.
myFICO Credit Score Monitoring
Once you have the credit reports, you need to analyze them to find anomalies and negative items; Space Shuttle Strategy can help you with this process. And once you have all the negative items to dispute, create a database with all the relevant details and information about each item. The next step is to write dispute letters which can be automated using a tool like DisputeBee, which has great features like pre-written dispute letters and an intelligent letter suggester. While DisputeBee only automates the disputing process, Credit Repair Cloud can help you automate the entire credit repair process, and it comes with its own active course – Credit Hero Challenge.
It is also best to keep up with the industry trends when you wish to start a DIY Credit Repair Business. And most importantly, understand the roles and laws of agencies such as FCRA and CROA, which sets directives and responsibilities for both consumers and credit repair businesses.
Also, you don’t require a license to run a credit repair business, but it is always best to have one as it shows you professional credibility and commitment. It also gives a positive interest to the consumers and helps you build your credit repair business brand. NACSO is one of the services that provide you with certifications for your credit repair business.
2. Business Planning
A white label credit repair software alone cannot help you run a credit repair business. You also need to focus on other factors such as lead generation, marketing, revenue targets, USPs, and many more. For this, one of the best things you can do is picture a roadmap for your credit repair business.
The initial step is to know who your customers are. Are they individuals or groups? And what is their pain point? Is it only a poor credit score, or do they want to secure a loan or try to repay timely with limited resources? Such questions help you think about your audience so you can tailor your services and marketing accordingly.
One of the other things to do is create a USP for your credit repair business. What different are you doing from your competitors that consumers with poor credit scores want to approach you instead of your competition? For instance, freebies on services, lower subscription tiers, free guides, one-time payments, social and video proof from existing clients about your services, and more. Such unique things make your credit repair business stand out and help you grow your credit repair business brand.
Transparency with your clients is also one of the moving factors that can help you build trust with your clients and grow your credit repair business long-term. You can have a transparent fee structure and constantly update your clients about the progress and how you were able to grow their credit scores.
If you are reading this guide today and not in the times of Adam and Eve, you need to consider marketing one of the crucial factors. Tailor your services, reach out to more users, and have a social presence to get more visibility; DIY Credit repair software equals nothing if you cannot get clients to work with you.
3. Establishing Your DIY Credit Repair Business
After thorough business planning, the next task is to establish your credit repair business. Let’s start with registering a name for your business, and there is a little science behind choosing a business name. When you pick a name, ensure it resonates with the services that you provide. At Investographer, we provide resources on finance, credit repair, crypto, and more, and most of these resources are helpful guides and software that you need to invest in so you can make the process easier. It is why I picked this name for my business. Likewise, think about what credit repair services you are going to provide and create a catchy name around it.
Once you have the name, check if someone has already picked and registered it. If not, register your business name with associated authorities first before anyone else does.
After the business name is registered, pick a website with the same name, so you can use it to present your credit repair business on the web and reach more audiences with the help of SEO, PPC, or other marketing. You can also aid this with social media posts, posters on Pinterest, and much more online and offline techniques (do follow TSR, FCRA CROA, and other laws).
Credit Repair is a manual process, but it doesn’t work the best when you have many clients or disputes to make and don’t have a team. Imagine writing hundreds of dispute letters for a client in the shortest period. That’s too much to work on. So, you can invest in getting DIY credit repair software such as DisputeBee or Credit Repair Cloud. And pair this software with tools like myFICO that can help you get monthly updated credit reports to track your progress. My personal favorite is Credit Repair Cloud, as it not only automates the disputing process but also automates the entire credit repair business.
You can read a detailed comparison between DisputeBee vs Credit Repair Cloud to learn more.
4. Creating Services and Subscription Tiers
Now that you have established your credit repair business, be it manually or using a DIY credit repair software, the next step is to know what services you will provide.
As we discussed in the beginning, the credit repair cycle works in a simple fashion, you get credit reports, analyze them and find unfair information, write a dispute letter, and then work with the credit bureaus to get it off your credit report.
Write Dispute Letters that Work
Use DisputeBee, a professional credit repair software that automates the dispute writing process to create near-perfect and credible dispute letters.
This is how credit repair works, but you can always tailor these services or add extra services and offer multiple plans for your clients to choose from. For instance, you can add a service such as debt consultation, credit coaching, and more. These services can then be offered in multiple tiers along with credit repair to get more clients and offer the best to the needful.
Multiple subscription tiers can not only help you offer more streamlined services but also be friendly to your client’s pockets. You can offer a basic credit repair package and a premium one with additional services. More than two subscription packs would only leave your clients confused.
5. Getting your First Client
Obtaining your first client is one of the biggest tasks of a new credit repair business. Why would anyone rely on a new credit repair business and pay them to boost their important credit scores?
One of the things I would do is make my close people the first few clients. They would be the ones who can trust me a little more than any other client and, based on the results, build my portfolio. For instance, getting social proof from them, asking them to rate my credit repair service, and spreading the word about it. Such things can then be used in online channels to build trust. But ensure you actually build their credit scores, and it will be helpful for you to practically use your credit repair knowledge in the real world.
Credit Hero Challenge is also one of the best ways to learn how to get your first client. It is a course designed by Credit Repair Cloud, which is also refundable on the last day of your course if you are unsatisfied. I find it pretty fascinating and a must-try option to learn how you can build your credit repair business and generate leads.
6. Growing your Business
If you come up to this point, it means you are already doing good in business and have a couple of clients in your hands. And if you feel this is a great time to grow your business, start by looking into the details of how your business has performed until now.
For instance, look into customer acquisition rate, retention rate, and revenue growth to understand your credit repair business performance. If the metrics look good, make more data-driven decisions and slowly upscale your business.
It is always best to collect some kind of social proof from your clients every now and then. This can be a video proof, a testimonial, a feedback system, ratings for your service, and more. Once you have these, learn what improvements your clients suggest and work on them to offer a better service. You can then diversify your services into the broader market and offer additional support for related services.
When you expand your services or bring in more clients, one of the things to note is it won’t be easy to manage it all alone. Here comes the need to build a team that can manage clients and offer them support and business. What I like about Credit Repair Cloud software is you get a dedicated client and team portal that simplifies the management task for you. You don’t have to create new Excel sheets to manage the overall work and rather check and assign tasks directly from your dashboard.
However, it is necessary to design a program for your team to learn your method of credit repair so you can maintain how your credit program works. This can be a short training, virtual classes, or documented resources for your team to learn your program. You can also share your Credit Hero Challenge Course with them to get a better understanding.
Start Your Credit Repair Business
Credit Repair Cloud is the best alternative to DisputeBee to start a credit repair business or improve your credit scores. It is an industry-dominant and growing company that helps entrepreneurs start their credit repair businesses. It offers software, systems, and strategies to start your own credit repair business.
Conclusion: Start a DIY Credit Repair Business with Our Guide
I have tried covering most parts of how you can start a DIY credit repair business with tools, tips, and more. However, there is always more learning to the business, and you will constantly counter challenges. The important part of running a credit repair business is to learn from these challenges and keep working on your skill set to make your credit repair business a success. This credit repair business guide is only the template to help you know how you can design your business and not financial advice; it can include risks.
Read more credit repair guides from us that can help you improve your credit scores or set up a credit repair business.
If you have more to add to starting a DIY credit repair business that you want to share with the community, let us know through emails, and if found suitable, we will include it in our guide with your social media handle. Until then, keep exploring our go-to guides, and do not forget to share them on your WhatsApp, Instagram, Twitter, or other platforms.