Credit repair involves restoring or correcting a poor credit score by pointing out untrue or incorrect listings from a credit report. The demand for credit repair services is increasing tremendously.
According to a report, the global credit repair services market is estimated to grow at a CAGR of 13.76%, reaching approximately $7,000 in a few years.
The increased demand for credit repair services is because people are after removing negative items from their credit reports so they can reach a higher FICO score and obtain credit. Therefore, starting a credit repair company can be a rewarding and fun business. To start a credit repair company, you need trained and certified staff.
Starting a credit repair business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell credit repair services, or selling credit repair services online, you can use this page as a guide for everything you'll need to know.
|Min Startup Costs||Max Startup Costs|
|Office Space Expenses||$0||$7,000|
|Employee & Freelancer Expenses||$150||$250|
|Business Formation Fees||$600||$4,700|
|Advertising & Marketing Costs||$0||$1,400|
|Total Startup Costs||$1,135||$23,259|
|Credit Repair Cloud||creditrepaircloud.com||#29,563|
|Credit Repair Services||creditrepair.com||#113,014|
|Live Brighter! Redstone Federal Credit Union||redfcu.org||#120,958|
|Major League Credit Repair||majorleaguecr.com||#228,536|
|Sky Blue Credit||skybluecredit.com||#355,952|
|The Dispute Center||thedisputecenter.com||#363,952|
|Ovation Credit Repair Services||ovationcredit.com||#469,925|
Pros & Cons
|Flexibility||You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.|
|Ability to start your business from home||It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!|
|Little startup costs required||The cost to start a credit repair business costs significantly less money than most businesses, ranging anywhere from 62 to 23,259.|
|Rewarding work||Starting a credit repair business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.|
|Scalable||With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.|
|No overhead costs||To get your credit repair business started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!|
|Crowded Space||Competition is high when it comes to your credit repair business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.|
|Longer Sales Process||A credit repair business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.|
|Work can be inconsistent||As a credit repair business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.|
|Lack of benefits||With a credit repair business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.|
|Isolation||Often times, as a credit repair business, you typically work alone and do not have much face-to-face interaction with other team members.|
|Taxes||As a credit repair business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.|
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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