Why You Should Start A Credit Repair Business

Start A Credit Repair Business

One of the best side types of side hustles you can start are those that you can entirely run from anywhere you have a laptop and an internet connection available. A credit repair business is one of those businesses that can be started with minimal upfront investment, and you can even start it without leaving your day job.

All you’ll need is some basic business sense, quality credit repair software, and the willingness to put in some hard work and learn about the industry. If you stick with it long enough and build up a large enough client base, it can become an extremely lucrative stream of income.

What exactly is a credit repair business?

A credit repair service helps consumers raise their credit score. Many individuals will come to you with poor credit, and they will have credit reports filled with inaccuracies, errors, and unverifiable negative information that is bringing their score down. These consumers will lack either the time or knowledge to increase their score on their own, which is why they will come to you for assistance.

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Your job as a credit repair service will be to communicate back and forth with credit bureaus, collection agencies, banks, lenders, and other types of furnishers on behalf of your clients. The goal is to clean up their credit report and ultimately raise their credit score.

What are other services I can provide when I start a credit repair business?

Other services you may provide will include advice and consultation on how they can raise their score on their own and keep their credit healthy moving forward, teaching them how to use credit responsibly, or recommending them trustworthy places to obtain credit cards and loans from.

This may sound like a complex business, but modern software such as DisputeBee makes it extremely easy for just about anyone to get started in this industry. As long as you follow all applicable laws for running a credit repair business and provide great customer service, there is no reason why you can’t make a respectable side income or even run this business full time.

Below we’ll cover some great reasons that you should consider starting a credit repair business as a side hustle.

Reason 1: Low barriers to entry

Starting a credit repair business requires little more than starting a website, registering with your state as a credit services organization, becoming bonded, and obtaining quality professional credit repair software, and finding customers.

Once you’ve set up the basics, most of your time will be spent gathering leads, onboarding new customers, and providing great customer service. The entire setup process can be done within 2-3 weeks. After that, you can pour all of your time and effort into finding clients.

Reason 2: High demand for credit repair services

Millions of Americans have poor credit scores and errors on their credit report. Especially in the wake of the Equifax breach, credit repair services will continue to be in demand far into the future. The industry has been around for over 20 years, and demand has remained steady over time.

When an individual is seeking out a credit repair service, there is usually a high urgency from the customer. They may have recently tried to apply for an auto loan, mortgage, or credit card and have been denied. Being denied for credit can be a significant life detriment, and these customers want to increase their score as quickly as possible.

Reason 3: Recurring business model

One of the most popular billing models for the credit repair industry is a monthly recurring fee. This monthly fee can range anywhere from $60 to $100 or more depending on how much you decide to charge. Since customers will usually stay with you for an average of 6 months or more, the income can really build up over time.

The other benefit of recurring billing business models is that your revenue becomes predictable over time. One of the hardest parts about starting a business is managing your finances despite upswings and downswings. If you can predict how much revenue you’ll be making on a monthly basis, this helps you stabilize your income stream.

Reason 4: Word of mouth referrals will grow your business

Once you have a pool of initial clients, your business will start to grow without you having to put a ton of time and effort into advertising and marketing. If you provide a high level of customer support and deliver results to your customers, they will do the marketing and advertising for you. It is very common for customers to have friends and family members that also need credit repair services, and you can even incentivize them to send you new business.

Reason 5: Your business truly helps people

You can be proud to run a credit repair business because you’ll be providing a hugely helpful service to your clients. If you ultimately help them qualify for a mortgage or auto loan, you’ll be providing a significant improvement to their quality of life. It’s important to have a sense of pride in your business, because it will help keep you motivated long term.

Without your service, these customers would likely be unable to fix their credit on their own. Navigating the credit system can be very confusing and difficult for average consumers to figure out. You’ll be a life saver for them.

Reason 6: Run your business from anywhere

Once you’ve got your business up and running, the bulk of your time will be spent in your credit repair software dashboard. You’ll be preparing letters to send to credit bureaus and data furnishers on behalf of your clients, and processing replies that your clients receive in the mail. After you’re comfortable with the software, you’ll be able to process a single client’s monthly disputes within 5-10 minutes of work.

You can run this type of business from anywhere in the world as long as you have access to a computer and an internet connection. This makes it extremely flexible and easy to start up.

Conclusion: How to start a credit repair business

If this sounds like the type of business you’d enjoy running, then don’t wait to get started. You could have a fully functional credit repair business up and running within the next couple of weeks, if you’re willing to put in the work.

At DisputeBee, we have a full step by step guide on how to start a credit repair business. Our specialized credit repair software is affordable and easy to use. We have plenty of built-in letter templates that you can use to get started with, and the entire system is built to make you as efficient as possible.