How to Run a Credit Repair Business

Running a credit repair business involves researching debt settlement and credit repair strategies, incorporating and then marketing your services. If you provide effective service, your customers will refer new clients to you, reducing your marketing costs. Credit repair can be a profitable business, but the number of unscrupulous operators in the sector make it imperative to build a good reputation and stand out from the crowd.

Instructions

1. Step 1

   Research debt settlement and credit repair strategies. Develop a format for form letters to send to your clients' creditors and the credit bureaus requesting debt validation, debt settlement, error disputation and credit entry deletion. Prepare a filing system so that you'll be able to assist in your clients' record keeping.

2. Step 2

   Incorporate your business in the state of your choice. Most small businesses choose to incorporate as a Limited Liability Corporation (LLC). To incorporate as an LLC, send articles of organization to the secretary of state in the state in which you will establish your company.

3. Step 3

   Decide how you will charge your clients. Some credit repair firms charge flat fees for certain services. Others charge a percentage of the debts being settled or deleted from credit reports.

4. Step 4

   Start a marketing campaign to generate business. Consider purchasing advertising online or in local print publications. Target low- to middle-income families, the consumers most in need of credit repair services. This will be the costliest and riskiest part of starting your business. Carefully track the effectiveness of your marketing campaigns so you can revise them as you proceed.

5. Step 5

   Begin serving the clients that your marketing campaign attracts. If you solve your clients' problems and run your business with integrity, you will earn a solid reputation. The more positive feedback you generate, the more likely your clients will tell friends and family members about your company. Frequent referrals will reduce the amount of money you need to spend on marketing.