🚀 Ignite your growth: Discover 30+ new tools to get ahead in our new Ecwid Igniter. Learn more →
Everything you need to sell online

Set up an online store in minutes to sell on a website, social media, or marketplaces.

How to Start a Credit Repair Business

9 min read

In the U.S. economy, buying a mattress, a house, and everything in between requires having good credit. People who’ve made mistakes or experienced unfortunate financial situations are punished by this system. Credit repair is about helping people out of bad credit situations.

Starting a credit repair business is fairly simple and can be good money, if done well. A reputable firm is far more likely to get customers than a company that only wants to make a quick buck. Customers can usually tell whether or not you are sincere. Take some time to decide if you are suited to start your own credit repair business. Once you have made the decision, there are several steps to follow to ensure your services are credible and worth the cost.

How to sell online
Tips from e-commerce experts for small business owners and aspiring entrepreneurs.
Please enter a valid email address

Training/Certifications

A degree is not required to start a credit repair business, but you definitely should get certified. It makes your business more credible, and customers will feel more comfortable trusting you with their credit. You should be aware that any old training service probably won’t be good enough. Many credit repair software businesses offer training courses to rope you into their product. Their courses are rarely thorough enough.

Look for training and certification courses through credit repair trade associations. These associations ensure high quality standards and require members to align with industry policy. It is in the association’s best interest to provide thorough training for new or potential members. Things you should learn in a training course are:

  • how dispute letters work
  • how to read and interpret contents of credit reports
  • how to save money for clients
  • how three major bureaus work and compare
  • how to get a banking and merchant account

The Credit Consultants Association and other trade associations provide affordable training and membership. In return, they ask you to comply with all laws and trade policies. Their seal of approval marks you as an ethical and trustworthy credit repair professional.

Legal Hurdles

Before taking advantage of a credit repair business opportunity, there are a few legal requirements to be aware of. To avoid legal trouble, be sure to stay compliant with all applicable rules and regulations.

Credit Repair Organizations Act

The regulations detailed in the CROA must be followed at all times. This is a federal law that regulates every credit repair business in the United States. It prevents companies from making false claims or taking advantage of customers. The US Federal Trade Commission has the authority to penalize or close a credit repair company that has violated the law. You can read the full CROA document online. The basic concepts are:

  • Misleading a client about your services and making false guarantees is forbidden.
  • A contract must be provided and the client must sign, with the right to cancel within three days.
  • Do not charge for services in advance.
  • Surety Bonds

Not every state requires a surety bond but it is wise to have them anyway. The surety bond protects your customers if your efforts damage their credit instead of fixing it. Each state charges different amounts for its bonds, so be sure to do your research. They usually land between $200 and $300.

Approval for a bond isn’t difficult to get as long as you have good credit and financial history. Once the application is completed, approval should come within 24 hours. Bond applications can be found at Bonds Express.

License and Registration

Most states do not require a license to start a credit repair business. Be sure to research your state, just in case. Registration, on the other hand, is required by at least 25 of the 50 states. To register, you must file an application naming your business as a credit services organization. Your business would be registered within your state of residence. Call your state’s Department of Revenue for more information on their requirements.

Taxes

Be sure to register your business with your state and get a tax ID. You will also need to register with the Federal government for an Employer Identification Number. An EIN works as your federal tax number. It would really be unfortunate to take care of all the other legalities, only to get in trouble with the IRS.

Getting Down to Business

Once you have slogged through all of the legalities, there are a few more steps to take. Before you can start helping customers, you need to attend to a couple of business necessities.

Open a bank account

This step might seem absurdly obvious. Of course, you need a business bank account. The problem arises when you are trying to find a bank that will work with you. Not all banks are credit repair business-friendly. Some of them find the business too risky and don’t want to get involved. Do not fret, though, there are several still that will work with your business including:

  • Wells Fargo
  • Schools First Credit Union
  • Bank Of America
  • BBVA
  • Regions Bank
  • Navy Federal Credit Union
  • Equipment

Companies that sell credit repair software for businesses will insist that you can’t operate without it. That’s not strictly true. While not necessary, the software is helpful, though expensive. The wise course might be to generate some income before investing in software.

The items you truly need are a smartphone and a laptop with internet access, email, and a word processor. Combine that with your training and you have all you need.

There are many good credit repair software packages available if you do decide to purchase one. The software charges a monthly subscription that can range anywhere from $30-$500 dollars a month. The best credit software allows you to launch and scale your business while keeping up with competitors. Credit letters, Credit Admiral, and Dispute Suite are just a taste of the various different software available online.

Website

You don’t need a big pricey website to convert prospects to customers. All you need is a well-structured page that is pleasing to the eye and provides relevant information. WordPress is a great place to start, but is not the only platform that offers good website templates.

Be a Credit to Your Industry

Credit repair services are in high demand, and a business to fill that demand isn’t too expensive to start. You can be successful by following the law and providing high-quality services at all times. You don’t even have to face starting a business on your own. All over the internet, companies like Ecwid are available to help you get in the game.

If you are ready to start your own credit repair business, Ecwid wants to come alongside you and make the journey a little less scary. Or a lot less scary. Now you can spend less time worrying about getting started and more time being a credit to your industry.

 

Table of contents

Sell online

With Ecwid Ecommerce, you can easily sell anywhere, to anyone — across the internet and around the world.

About the author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

Ecommerce that has your back

So simple to use – even my most technophobic clients can manage. Easy to install, quick to set up. Light years ahead of other shop plugins.
I’m so impressed I’ve recommended it to my website clients and am now using it for my own store along with four others for which I webmaster. Beautiful coding, excellent top-notch support, great documentation, fantastic how-to videos. Thank you so much Ecwid, you rock!
I’ve used Ecwid and I love the platform itself. Everything is so simplified it’s insane. I love how you have different options to choose shipping carriers, to be able to put in so many different variants. It’s a pretty open e-commerce gateway.
Easy to use, affordable (and a free option if starting off). Looks professional, many templates to select from. The App is my favorite feature as I can manage my store right from my phone. Highly recommended 👌👍
I like that Ecwid was easy to start and to use. Even for a person like me, without any technical background. Very well written help articles. And the support team is the best for my opinion.
For everything it has to offer, ECWID is incredibly easy to set up. Highly recommend! I did a lot of research and tried about 3 other competitors. Just try ECWID and you'll be online in no time.

Your ecommerce dreams start here

By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Your Privacy

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer. More information

More information

Strictly Necessary Cookies (Always active)
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third-party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Performance Cookies
These cookies allow us to count visits and traffic sources, so we can measure and improve the performance of our site. They help us know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies, we will not know when you have visited our site.