Startup Credit Repair Business

The venture into startup credit repair business is not as complicated as some content on the internet might portray. The only hurdles you will have to deal with are the ones involved in learning the ropes. You just need to manage, acquire, and master the necessary hacks and tricks under startup credit repair business. The takeoff that follows will then be a smooth transition. Thus putting in the needed work and learning from the financial industry are the necessary steps. Now that you know the credit repair business has no limit, its time to provide you with proof. Think of this article piece as a guide from baby steps to full maturity. It should build a sufficient and adequate knowledge base for you to get you the first client. Thus before we get there, The baby steps first.

 

What is Startup Credit Repair Business

A startup credit repair business has one sole objective in mind. Moreover, it’s not an independent entity. It constitutes an integration of fully managed services. Such services could include the retrieval of client credit reports. Also, the negotiations with the linked financial bodies to remove the negative items exist. These services are independent yet interlinked. Thus startup credit repair business integrates these services, making them communicate with each other with the clients’ interest in mind. These interests include the assistance to qualify for better credit and the resolution of a bad credit score. Thus this credit business is client-oriented. A customer’s credit card can have inaccurate or harmful information at first. Therefore it is up to the credit repair business to make the needed disputes on behalf of the client.

When a client presents such a challenge, the startup credit repair business manages the entire procedural process. Thus the credit repair business needs to have a stable and reliable communication channel with the creditors, credit bureau, collections agencies, and lenders. In short, a credit repair business walks in the shoes on the client. The education process to familiarize yourself with credit repair only needs your undivided attention and some commitment. Now that we have a definition of this ghost called startup credit repair business, its time to break it down.

 

Startup Credit Repair Business’s Applicable Laws

As with any business, leave alone credit repair, some familiarity with the necessary legal requirements is unavoidable. These requirements will set the tone for you so that you do not get in trouble with the law. Hence compliance is non-negotiable with all the involved regulations and applicable laws. Thus credit repair business owners are all under the governance of credit repair laws. These credit repair laws fall under the categories of federal and state laws. The state laws vary. Hence each State can depict different laws and regulations. The federal legislation, however, does not offer any leniency. Their rules are mandatory, and all States must oblige to them. The state laws are flexible for your startup credit repair business. Thus one State will require special licensing and registration, and the other will offer you leniency. Let us proofread some of the needed legal requirements.

 

Requirement #1: CROA (Credit Repair Organizations Act)

This law needs to be on the first page of your startup credit repair business’s manual. That law is CROA. This federal law came into effect in 1996. Thus in the United States, all the registered and operational credit repair businesses fall under its regulation. Any false claim made by a credit repair business or misrepresentation of the consumers is breaching this law. FTC (Federal Trade Commission) in the US enforces CROA. Thus a credit repair business that goes against the set regulations will have to deal with the FTC authority. This authority empowers it to shutdown, fine, and penalize the guilty credit repair business. A full take on CROA can is here. However, the primary considerations are as follows:

• When dealing with a client seeking credit repair services, get straight to the point. Do not mislead this customer with irrelevant information on the services offered. Commit to the guarantees you make to the customer and uphold your service performance promises.
• All businesses with your customers should be evident through a written contract. It should not be through word of mouth as anyone can easily deny their involvement. The contract should have a field for the client to sign. Moreover, a contract cancellation clause within a stipulated period of three days also needs to exist.
• Only charge the client on the service rendered. No advance payments should be in effect. The client needs to pay after a delivered service and not pay while waiting for the service delivery. The only advance payment that should go with the startup credit repair business is under two service areas. They are the credit report analysis and initial consultation fees. Any other advance payment is illegality and a beach of the law.

 

Requirement #2: Bonds

A surety bond is also necessary, but it will depend on the State roofing your startup credit repair business. Surety bond under credit repair serves as a safety net for the consumers, which are your clients. Your credit repair business may, at one point, be a victim of some sort of financial damage. The surety bond thus protects the clients from being victims of any crippling consequences on your credit repair company.

The different States with demand different surety bond amounts; hence it can’t be fixed. Moreover, some States do not see the necessity of a surety bond. The surety bond for the targeted credit repair services is on a typical price range of $200-$300. It, however, depends on the proposed bond amount.

The approval process for a bond is not a complicated procedure. You will first fill out the necessary application forms. Once the application is approved, you will provide the aforementioned mandatory payment. Your application form will detail several essential characteristics. They include:

• Details on your credit score
• Public records such as tax liens
• financial assets
• Questions like how old are your businesses
• Bond amount

The public records mentioned on the list above will also have to consider your bankruptcy status. If you are familiar with the details mentioned above, filling out the application won’t be a challenge. Now you are familiar with a bond application process.

 

Requirement #3: Registration and Licensing

The formalities under licensing requirements for a startup credit repair business are a bit blurry. However, the registration requirements are solidly evident. We can make a reliable estimate of about 25 States involved. These States engaged in the registration requirement process follow a procedural route. The first step is to fill out a registration or application form. The process designates the record of your business under the identity of the Credit Services Organization. It takes place in the State that houses the credit repair business, and a registration fee is also a requirement.

If you are not sure about your State’s specific registration requirements, make an effort to consult with the Department of Revenue linked to your State. They will clear the air on the missing info. Your credit repair business is now familiar with the different State rules and regulations it needs to operate at this point. The next segment is a discussion on the mandatory software requirements to propel your credit repair business’s efficiency.

 

Startup Credit Repair Business Software

The platform a startup credit repair business’s software offers is a critical step towards the success of credit-repair ventures. The right credit repair software has a lot to offer. For once, you will attain maximum efficiency, and your clients won’t have to be on hold. It is because better and faster results will be the outcome of your efforts. Thus a credit repair business says goodbye to manual and erroneous methodologies of delivering services to prospective clients.

Consider this instance, credit repair software reduces the input time on the application dispute of a single client. You only need to work for 5-10 minutes per raised dispute or controversy per client. This analysis, moreover, can be every month. The credit repair software performs the bulk tasks on a short time-frame. You thus have more time to tackle other core tasks relating to your credit repair business. They can be:

• The provision of initial consultations and onboarding clients.
• We are communicating with the linked furnishers and credit bureaus via the creation and transmission of the necessary dispute letters.
• Provided quality customer service and kept the customers updated on the progress of their credit repair application.

However, the instances mentioned above do not have to be entirely manual. If you are creative enough and find a way of automating them, the sky won’t be the limit. It will translate to better time conversion and hence better returns due to more processed applications. Moreover, using less time to clear up more credit repair applications further motivates you to scale up. Your business will grow due to the increasing customer base.

 

Repeatable Monthly Client Processes

A startup credit repair business’s software removes the possibility of human errors and keeps you on repeatable yet manageable monthly activities. Below is a screenshot of what your credit repair months will be like under credit repair software.

• The acquisition of a customer and the creation of their user profiles.
• Credit monitoring through client credentials.
• The addition and review of the clients’ credit reports.
• The use of the startup credit repair business’s software to generate the needed dispute letters.
• Use a Mail button on the credit repair software to email the generated dispute letters.
• A 30-day period is sufficient wait-time for a response from the credit bureaus. It is time to review any responses and create other dispute letters if necessary.

 

The Automation Processes of a Startup Credit Repair Business Software

• It will be easy to keep track of the documents and personal information related to your clients.
• The importation of the client credit report is as easy as a click of a button.
• The flexibility of the interface identifies the credit report’s negative items like late payments, inquiries, bankruptcies, and collections easy.
• The automatic generation of ready-to-send dispute letters. The furnishers and credit bureaus addresses are also within these letters.

 

Startup Credit Repair Business Website

Every business in the current modern world setting requires a website to take it to the next level. It is the impression that will either win over or send away a potential client. The credit repair business website should consider some essential aspects of its outlook. It should be friendly, professional, and also seek to establish some level of confidence in its service delivery schematics. If it can capture leads through the registration of new customers, it will be easy to make followups through email. It the clients take to long to respond via email, then contacting them via phone is advisable.

 

Startup Credit Repair Business’s Billing and Invoicing

The initial steps of credit card processing can be confusing. This situation is evident due to the involvement of too many intermediaries in the process. Thus the startup credit repair business’s software of your choosing should offer a scapegoat. This scapegoat is a built-in customer billing integration system. The first requirement here is a payment gateway. The payment gateway for your credit repair business should offer reputable security. That is when receiving information related to the customers and their associated credit cards. The payment gateway will be the bridge to your merchant account where the processing of the client information takes place.

The mentioned merchant account is another must-have requirement. It is an operable credit repair business entity having direct contact with the acquiring bank. It thus makes it easy to process the needed credit card payments. If successful, your business checking account then receives the deposited amount.

A final note on the billing and invoicing of your credit repair business is the need for a recurring billing system. This system enables you to control, manage, and view the records of your billing. Moreover, your clients won’t have to be the ones making invoice requests. The system can automatically generate the bill and invoice them every month.

 

Final Thoughts

The swimming lesson is over. You should now be able to know your way around the credit repair pool. However, if you put in a lot of hard work and determination, you will become a legend under credit repair. Persistence and discipline are also important in this field of work. You now understand the business, have a glimpse of the required software, and website. They are enough baby steps to begin the credit repair journey.

Resources

https://www.sba.gov/learning-center

Can Your Credit Repair Business Be Profitable?