Can Your Credit Repair Business Be Profitable & By How Much?
If you have a credit score in the 600s, you’ll likely have to deal with subpar loans. Anything below 600 and you may not be approved for a home loan at all – beware of scammers or bad mortgage deals if someone claims otherwise. Debt collection accounts are credit report entries that show that you defaulted on a previous debt or loan. Your creditor eventually sold the loan to a collection agency or a debt buyer, who is now more than likely trying to collect your debt with frustrating persistence.
Like all businesses, start small then grow as you generate more revenue. The longer you keep grinding away at an unfulfilling job, the less time you’ll have to grow a business with an unlimited financial upside. You must also be good at building alliances with other businesses who will refer clients to you.
During the inquiry, the items in question won’t be included in a credit score, and a notice will appear under each disputed item. If the creditor doesn’t respond with proof that the item is accurate, the credit bureau will remove it. Credit repair companies have a team of trained attorneys who understand the laws and could be in a better position to have negative items removed from your credit report.
Even though reputable credit repair agencies do not need the best BBB rating to be reliable, they still need to have a good reputation for working with customers. Furthermore, the services will also include debt settlement, cease and desist letters, debt validation, and goodwill letters. Sky Blue claims that their process usually only takes six months, and you can cancel or pause the services whenever, without incurring any penalty.
Your client portal provides you with live updates on your credit scores and any progress that your FICO expert is making at the moment. They offer several comprehensive packages that range between $69 a month all the way up to $149 a month. But they also have a basic credit monitoring package for $19 a month if you just want to keep an eye on your credit score and don’t need extra assistance. They offer a single package that’s pretty affordable at $79 per month, plus an initial $79 review/setup fee. The firm will dispute up to 15 items on your report, or 5 items per credit reporting agency, every 35 days.
Typically, credit repair businesses must bonded to legally operate. Check with your state’s department of business regulation for the specifics of each requirement. These services include debt validation, inquiry validation, toll-free customer service, and 24/7 account access. But if you are unwilling to wait and grow your credit repair business organically, you will want to try marketing your services. The first step to any marketing initiative involves figuring out your target audience.