Here’s What to Know About Starting a Credit Repair Business

June 26, 2018 506 views

Image of someone holding a credit card

How to Start a Credit Repair Business

In today’s economy, many people are struggling with financial problems.

As a credit counselor, you are the connection between the people that owe money on their accounts and creditors.

A normal day may start with new client meetings. After you may help other clients by working out a budget and organizing debts. Finally, you may spend time talking and negotiating with creditors to reduce interest rates or consolidate debts.


There are a few things to consider before you start. First, decide whether to have an office or work from home. It is cheaper to start at home but an office gives more credibility.

Be advised that non-law-firm-based credit repair businesses are often required to place a surety bond before they can work.

Finally, consider starting a franchise such as Credit CRM. There are some up-front fees to start a franchise but it also gives you name recognition, as well as a proven business model.

Skill Set:
    • Staying current with business matters such as licenses, insurance, and permits
    • Recording and organizing clients’ financial records
    • Analyzing credit scores and history from credit reporting agencies
    • Scheduling appointments
    • Acquire credit repair leads from banks and credit card companies
    • Stay up to date with the credit reporting laws
    • Take action on fixing any credit report errors; if the reporting agency cannot verify a disputed item on a credit report, they must delete it
    • Contact creditors as needed to settle disputes or make payment arrangements
    • Determine if there are too many open trade lines that are causing credit score problems
    • Make sure paid-off loans show on credit reports
    • Scan or make copies of all financial information and file per client
    • Uphold non-disclosure agreements and guidelines
    • Acquire credit repair leads from banks and credit card companies
    • Common Business Skills
Employee and Job Consideration During The Startup Phase or In The Future:
Approximate Daily Hours Needed:

General Hours of Operation – When your business is open – 9:00 a.m. to 5:00 p.m., although you may find evening and weekend hours easier for a lot of clients.

Equipment, Supplies, & Services During Start-up or In The Future:
Monthly Expenses and Operating Costs To Consider:

You may be required to obtain a surety bond. If a bond is required, a copy must be filed with the Corporate Commission in your state. You will also have to follow the regulations of the Credit Repair Organization Act closely.

See Our Page on Licenses and Permits

Approximate Minimum Startup Cost:

The average startup cost is approximately $500 in order to get supplies, licensing, and certifications.

Special Requirements for This Business:
  • Special certifications
  • Surety bond
  • Liability insurance
  • Consumer law knowledge
  • Business law knowledge
Pros and Cons:

The Pros:

  • Low startup cost
  • The benefit of working from home and being your own boss
  • The amazing feeling you get from helping others overcome financial woes
  • Ability to gain knowledge and experience to apply in related fields

The Cons:

  • A large amount of paperwork involved
  • Law prohibits you from charging customers before work is done
  • People are leery of credit repair firms due to the high rate of fraud
  • Highly competitive
Type of Customers You Need to Attract:
  • Anyone with bad credit
  • People on the verge of bankruptcy
  • Middle-class suburban families who are attempting to purchase a home
  • Business owners need assistance most often with obtaining small business loans

According to creditrepairfirms.net, one in 20 homes has more than $8,000 USD in credit card debt. About 40% of credit card users only pay the minimum amount each month.


The average fee varies from $300 to $700 (or more) per case, depending on the amount of credit cleanup that needs to be done. Because this business has wait times for correspondence, you can easily run cases concurrently.


Related Sites:



AAA Credit Guide

Credit Info Center

Franchises and Affiliates:

Franchise Gator



Federal Trade Commission

FDIC and the Fair Credit Reporting Act

National Association of Credit Service Organizations


Dispute Suite