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Potential Scalability of a Credit Repair Company

Potential Scalability of a Credit Repair Company

Potential Scalability of a Credit Repair Company

When you eventually start your credit repair company, you are always looking out for the potential to scale your business. However, here is one shocking discovery, according to Seth’s lecture during the 2019 Credit Repair Expo, scaling is often confused with growing a business, but the two are actually different terms. Scaling a business is about earning more money without incurring more costs. Growing a business, on the other hand, could mean adding more labor and costs to your overhead, without actually increasing your personal revenue.

So, if you are planning on scaling your credit repair company, are you really prepared for the task ahead?

Though many people want to scale their businesses, they don’t always prepare well enough to make it a reality. To determine how prepared you are, ask yourself:

  • What is your goal with regard to scaling your business?
  • If your goal is to grow your revenue, what steps have you taken to do so effectively?
  • How well do you know your business numbers? Have you identified the areas where you can cut costs?

If you’re not sure how to respond to these questions, this article will help you find answers to the above questions. We’ll help you start to formulate your plan, and find answers.

  • How Can I Scale my Credit Repair Company?
  • How do You Describe a Credit Repair Business?
  • How Good is DisputeBee?
  • What Should I Name my Credit Repair Company?
  • How do Credit Repair Companies Make Money?
  • How Much Does The Average Credit Repair Business Make?
  • How do I Write a Credit Repair Business Plan?

How Can I Scale my Credit Repair Company?

Define Your Goal

Though it might sound counterintuitive, scaling your business isn’t measured by growing revenue right away. There are building blocks that must be laid before you can reap the rewards. For example, Seth focuses on fringe services to grow his affiliate network, which eventually lead to increased revenue.

Read Also: Credit Repair Company That Works

Seth connects with realtors, property managers, and building owners to offer credit services to tenants in apartment buildings. If renters spend an extra $30 on their rent, Seth will provide credit repair services. The end goal is to help renters eventually earn strong enough credit to purchase a house. By growing his affiliate pool, Seth is able to help more people, which inevitably increases his revenue.

Get Your Foundation Right

If you were handed an extra 300 clients today, could you handle it? Scaling a business starts with creating a foundation that won’t crumble. For many credit repair specialists, a strong foundation requires technology to streamline business processes.

According to Seth, his engineering brain depends on software like Credit Repair Cloud to cut business costs. At the 2019 Credit Repair Expo, for example, Seth said Credit Repair Cloud technology gave his business the ability to digitize the dispute process.

By leveraging software that allows him to send digital versions of dispute letters, Seth eliminated the need to lick and stuff envelopes. His previously manual process was both time-consuming and expensive. Seth estimates automation cut his dispute letter cost to $3.17 a client. This cost includes importing credit report data, creating dispute letters, and sending finalized letters to the bureaus.

Don’t Forget Your Value

When automating and scaling your business, you’ll run into trouble if you continually change the cost of your services. Seth challenges anyone in the credit repair business to keep their prices consistent. Don’t discount your prices for friends and family. Know your value, and demand that anyone utilizing your services pays you what you’re worth.

Inconsistency in your pricing structure will make it challenging to scale your business. Not only will you get pushback on your prices from clients who expect a reduced rate, but you’ll also make it more difficult to apply automation to your process due to an overly complex pricing structure.

Set Reasonable Expectations

Scaling a business isn’t always possible for credit repair specialists who are just starting out. Be sure you know what is required to scale so you can properly anticipate challenges you might face.

Scaling your business is a process that takes time and might take a little bit of cash flow in the following areas:

  • You might hit some bumps along the road, and while you’re working out the kinks, your revenue could dip temporarily.
  • You’ll need to spend money to make money. Even if the cost of technology seems a bit high, think of the return you’ll get from it.
  • If you’re not a tech-whiz, it’s OK to outsource for extra help as you set up integrations and automation.

These realizations shouldn’t deter anyone from scaling his or her business, but to give a realistic view of what to expect, and what to prepare for. Remember Seth’s advice, “When you face challenges, don’t stop. That’s when you need to push the hardest.” Persistence will pay dividends in the end.

How do You Describe a Credit Repair Business?

A credit repair company works on your behalf to remove this information by communicating with the credit bureaus (Experian, Equifax and TransUnion) and/or financial companies, like your bank or a debt collector, to dispute the errors.

There can be a lot of back and forth, but the end goal is to have negative information deleted from your credit file so your credit rating improves.

Credit repair companies don’t help you manage your money, which is a different service offered by credit counseling companies like the National Federation for Credit Counseling (NFCC) and the Financial Counseling Association of America (FCAA).

Credit repair services aren’t free, but you won’t incur a fee until services are delivered. Fees are charged in one of two ways: monthly or per item removed from your credit report.

Monthly subscriptions charge you for services provided during the previous 30 days, while the latter only charges you once info is removed from your credit file. The exact fees vary by service, but they can add up to hundreds or thousands of dollars every year.

Credit repair services aren’t always reliable or truthful. In fact, the CFPB found that more than half of people who submitted complaints about credit repair companies cited “fraud or scam.”

Thankfully, there are consumer protections. If you opt to use a credit repair company, you’re protected under the Credit Repair Organizations Act (CROA), which regulates how these companies can operate. Some key points include:

  • Consumers have three business days to cancel a contract without charge.
  • Companies can’t guarantee that they can remove information from your credit reports.
  • Companies can’t advise you to make false statements or change your identity to prevent the credit bureaus from associating the information with you.
  • Consumers can’t be charged any fee for services that haven’t been fully rendered.

Before signing up for any credit repair service, make sure they follow the CROA rules and look out for possible red flags, such as payments being demanded upfront or results that sound too good to be true. The CFPB lists more ways to avoid being misled by credit repair companies.

And better yet, dispute any errors on your credit report on your own. There is no fee to clean up your credit and you’ll avoid misleading companies that may take advantage of your poor credit standing. Remember that even if you pay to have information removed from your credit report, there’s no guarantee that it’ll boost your credit score.

How Good is DisputeBee?

DisputeBee is a credit repair software that allows you to send out dispute letters on automation while tracking your credit score and following up on your results. 

DisputeBee has an individual credit repair plan for those who are looking to fix their credit or try it out and they also have a business plan for those who want to start a full credit repair operation.

The software works in three easy steps.

  1. You first want to import your credit report and have the dispute wizard tool mark all the negative or incorrect items off your report. 
  2. DisputeBee will then create your dispute letters for you to then you’ll print them out and send them out via mail.
  3. The last step is to then just follow up every 30 days and see what your results will be. Depending on the creditor you will typically receive a “verification” or “deleted” letter.

DisputeBee is made for anyone who is looking to fix their own credit or start their very own credit repair business by streamlining the process using automation.

If you’re looking for personal credit repair software then this Is a great tool to use as it has many features:

  • Import Your Credit Report
  • Supports All 3 Bureaus
  • Personal Disputes to Bureaus
  • Personal Disputes to Collectors
  • Pre-written Dispute Templates
  • Dispute Process Tracker
  • Dispute Collections
  • Dispute Credit Inquiries
  • Dispute Late Payments
  • Dispute Bankruptcies

DisputeBee offers two very affordable pricing plans, but a free trial is not included.

DisputeBee Pricing:

Individual plan: $39 per month and perfect for personal use.

Business plan: $99 per month and offers many features to automate your credit repair business.

Compared to other credit repair software, DisputeBee is very affordable and a great place to start if you’re looking to fix either your credit or friends & family members.

DisputeBee is definitely legit and works just like any other credit repair software. This tool teaches you the laws such as the FRCA & CROA to understand the credit repair space before you start sending out letters like crazy.

What Should I Name my Credit Repair Company?

Did you know that 64% of consumers confirmed that they trusted a brand that shared their core values? To get your business naming journey started, here are some great name ideas from our Credit Repair Business Name Generator that convey brand values in the name:

  1. Credit Independent
  2. Core Credit Repair
  3. Asset Approved
  4. Creditdeck
  5. The Credit Doctor
  6. Recover Credit
  7. Budget Best
  8. Build Capital Credit
  9. The Financial Guru
  10. Credit Repair Pro
  11. Fiscal Wealth
  12. Creditops
  13. Nixon Wealth
  14. Optimum Credit Repair
  15. Credit Compass Approved
  16. Wealthfluent
  17. Query Credit
  18. Rapid Financial Repair
  19. Project Credit
  20. Financial Fortress

Follow our four-step process to help you efficiently create your credit repair business name.

1. Brainstorm your name ideas

When creating a catchy credit repair name, the initial step is to brainstorm keywords that you feel best to reflect your business. Take some time to consider the service you provide along with the company’s ultimate values. As you review these aspects of your business, you can begin to extract relevant words.

2. Shortlist your ideas

Once you have constructed a list of possible names, begin to analyze each idea.

Aim to eliminate terms that could be hard to remember, spell, or speak aloud.

Remove overused words, clichés, and words that can hold negative connotations.

As you shortlist your ideas, you can contemplate how your target audience may perceive each word or name. You can also ask yourself these questions:

During the shortlisting step, contemplate how you think your customers may perceive these words. Ask yourself these questions:

  • Which words compel consumers to know more?
  • Does this tell the customer who we are and what we do?
  • Is it pronounceable, memorable, and simple?
  • Would you seek credit support from a company with this name?

When you approach this step, aim to curate a list containing 3-6 potential credit repair name ideas.

3. Get some feedback

The third step focuses on accumulating accurate feedback from reliable sources.

It can be highly beneficial to reach out to members of the industry that have a more profound knowledge of the terminology used in the credit repair sector.

Aim to connect with your target audience, such as previous clients who have experienced the service you provide first-hand.

You can also consider asking the opinion of potential customers to gain a new perspective and help them feel valued.

Avoid requesting input from close family and friends, as they are more likely to praise your ideas rather than provide constructive feedback.

As an example, I would aim to ask questions like:

  • What first comes to mind when you hear the name?
  • How would you spell it?
  • What do you associate these words with?

Once you have completed market research, you can now determine whether your remaining options represent the business the way you intended.

Evaluate whether they have the potential to stand out from competing credit repair companies.

4. Check if it’s available online

At this point, you will likely possess two or three good credit repair business names awaiting approval.

Before finalizing ideas, it is essential to check whether these names are available online.

You can do an online Business Name Search to determine whether your name is available within your country or state.

Before purchasing a domain name using one of your remaining options, ensure it is available for Trademark and Domain name registration.

If the results show another credit repair company takes the name, consider tweaking the word combination or spelling without compromising the name’s effectiveness.

Consider heading back to the drawing board if you cannot find a suitable alternative.

How do Credit Repair Companies Make Money?

Credit repair companies dispute errors on your credit report by filing formal complaints on your behalf. The goal is to have incorrect or outdated information removed. Once you select a company, it will conduct an in-depth review of your credit report to identify any items negatively affecting your score.

It will then contact the three major credit bureaus, Equifax, Experian, and TransUnion, to resolve what items it can. The disputes can include areas like bankruptcies, tax liens, and charge-offs, which all may be disputed or negotiated for removal through letters to the credit bureaus, letters to your creditors, or even a simple verification.

That said, credit repair is not cheap, and credit restoration companies charge for this service, making them far different from credit counseling agencies, which are typically free and place a greater emphasis on education. 

“Credit repair services cost money,” says Brian Dechesare, founder of Mergers & Inquisitions, a blog devoted to banking and finance. “This can be challenging for people who are already deep in debt.”

Charges can vary from a one-time fee to a per-item fee for every negative mark the company removes from your credit report. Some credit repair companies provide monthly pricing instead, which can include an average setup fee of $100 and can cost up to $150 per month and more. Ultimately, the cost of credit restoration will depend on several factors like where you live, what services you need, and the severity of your case.

When you look at the services provided by credit repair companies and the fees they charge, most consumers find credit repair services simply aren’t worth the cost. In most cases, those funds would have a much bigger impact on paying down outstanding debt.

If the credit repair process feels too overwhelming to tackle on your own, don’t forget there are resources available to you. Credit counseling is a great free service for anyone struggling with debt who wants to know more about their options.

How Much Does The Average Credit Repair Business Make?

If you run the business efficiently and take advantage of the huge demand that is there in the market today, you can operate a credit repair business that is extremely profitable. Find a merchant account processor who can assist you in starting and running a profitable business.

To put it all together, starting a credit repair business will set you back upwards of $1,000. However, many of your company’s missing pieces aren’t included in that. You can calculate the true startup costs yourself, but we’ll assume $10,000 for the first year.

Credit Repair Specialists are in high demand and can earn $10,000 to $20,000 per month (or more) on average. Some people earn millions of dollars a year and have the ability to make a significant difference in people’s lives. The most successful credit repair companies all use the same techniques, which are broken down into simple steps in this book.

Credit repair companies charge a fee to review your credit report and dispute negative items on your behalf. A credit repair agency is typically for profit, while a credit counseling agency is typically non-profit.

The Credit Repair Services industry has a market size of $3 billion, based on revenue. In 2021, it is expected to be worth $4 billion. It is profitable to repair your credit. It’s a recurring-income business that you can start with nothing more than a computer and a phone. Learn how to repair credit for yourself and others while also starting your own profitable home-based business. There is a growing demand for Credit Repair Professionals, and the monthly income can range from $10,000 to $20,000.

How do I Write a Credit Repair Business Plan?

Whether this is your first business venture or side business you are getting ready to launch, you’ll need to take a “big picture” approach when developing your business plan before drilling down to the details.

The goal of writing a plan for a credit repair business is to have a roadmap or blueprint that you can execute with ease. You will need to define exactly what you expect to achieve in the areas of marketing, profits, operations, and general business management. Your business plan can help you visualize your goals and identify any gaps or things you need to address before you get started.

As you jump into the credit repair industry, consider what your market looks like, who your ideal customer is, and what marketing strategies will appeal to your target demographic. You can outline all of this in your business plan to get a better idea of who your business caters to and to who you will provide services to them.

You’ll also need to plan on doing more planning — your business plan will need to be updated as your business grows and evolves, especially if you plan on hiring people to work with you or if you expand your services to cater to a larger market. Be prepared to tweak your business plan as you go. 

Read Also: What Are The Ways to do Marketing For a Credit Repair Company?

Your credit repair business plan will need to include several key elements that outline your core strategies, services, and your target market. You’ll need to expand upon the following areas:

  • Executive Summary: This serves as an introduction to your business plan and highlights the market opportunity — a large number of customers in need of credit repair help. It can also include a mission statement. This section of the business plan doesn’t need to be very long or detailed since you will be going into more detail of each subsequent section.
  • Business Description: This can be a short description of the industry or market, a snapshot of what the market for credit repair services looks like. This is your opportunity to define what problem the business solves for your target market and can include the different types of credit repair services you offer. This might include everything from dispute letter-writing to credit score analysis services.
  • Market Analysis: This is an analysis of the target market backed by data and other materials that define how your company will position itself to best serve its customers.
  • Competitive Analysis: This is a breakdown of similar companies in your area or industry that could prevent you from reaching enough customers to generate profits. You will also want to identify any weaknesses or gaps in services that other companies have failed to address so that your business is a standout.
  • Operations and Management: Whether you’re a one-person show or are planning to hire a team of people to work with you on your credit repair business, you’ll need to explain how your business is organized, what types of expenses you will incur to keep the business running, and who will be responsible for managing different aspects of your business.
  • Goals: This can be organized as phases of your business as you launch and expand, outlining the different services you will offer at each stage of growth and any milestones you can identify or share.

Creating a credit repair business plan may feel like a daunting task but having one can help you turn to a roadmap as you develop and expand your business.

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