Do you want to start a credit repair agency from home? Or you need a sample credit repair agency business plan template? If YES, then i advice you read on.
In a world where houses are bought on mortgage, cars are bought on hire purchase, clothes are paid for with credit cards, electricity and phone bills are outstanding and the debts keep piling up with no reasonable hopes of ever coming down, people have no choice but to run to credit repair agencies for succor.
Bad credit is ……..hmmm……bad. When you have a bad credit report, it feels like the whole financial world is against you. Life becomes much more difficult and the following things begin to happen to you-:
Why the Demand for Credit Repair Service is on the Increase
- Creditors/potential lenders would charge you a higher interest than they would charge others because you are considered ‘high risk’.
- You find it difficult to get loans anywhere. One of the criteria used for evaluating loan applications is your credit report and if the credit report be destroyed, what can the bankers do? Say no to your loan request I guess.
- You would be close to homeless because you would find it extremely difficult to get a mortgage. Even renting a space might be a problem because landlords may not want you because of your ‘high risk’ status.
- Utility companies would ask you for security deposits to do business with you and you may as well just get a prepaid phone because you may not be able to get a cellphone on contract purchase basis like everyone else.
- Now, this one is very terrible and rather unfair but so is life- you may not even get a good job or be allowed to run some kinds of businesses because of your bad credit status.
- And when you decide that it’s time to insure your life and properties, Insurance companies would charge you higher premiums than others because of your credit status.
- Oh! Let’s not forget that your peace of mind also goes out the door because you would keep getting incessant phone calls from the people you owe, urging you to pay up and threatening to slam you with a law suit and damaging your already damaged credit status.
- Are you expected to run around town in a bicycle too? Because even car sales companies would frown at offering you credit options for buying a vehicle and even when they do, they would slam you with ridiculous interest rates which would further affect your credit status.
So, you see why people with bad credit run to credit repair companies for help? A credit repair company would do the following-:
The Role of Credit Repair Agencies in Today’s Society
- Look through your credit report for any errors, miscalculations and false entries and dispute any entry that is suspicious or incorrect.
- Inquire if the proper verification procedure was followed by the credit bureaus and obtain records and proofs of your debts from the original creditor and if they cannot provide it, dispute the claims.
- Help clients negotiate better interest rates.
- Help to negotiate better payment plans to fit into your budget.
However, credit repair agencies cannot guarantee any results whatsoever and a credit repair company cannot help you to make timely payments of your debts which is what counts for a good score in the first place. To start your own credit repair business, this is what you would need to do:
Starting a Credit Repair Agency – Sample Business Plan Template
1. Learn the basics-: You must first take time to study how the business works. You can start with your own credit report or those of your friends. Obtain a free copy of your credit report or those of your friends and acquaintances and try to repair it.
When you have successfully done one, two or three repairs, you would understand the business better and be able to handle clients. You can then proceed to prepare a credit repair business plan.
2. Register your business: You should also register your business name and then obtain necessary licenses and permits.
3. Understand laws and regulations-: Also, you must understand that credit repair is a highly regulated business and you would be presented with some strict list of guidelines which you would have to comply with. Therefore, you should ensure that you carefully study and understand these guidelines.
4. Purchase credit repair software-: You can make your job easier by investing in professional credit repair software. This software also comes with in-built letter writing templates which you would use in sending dispute letters to your clients, creditors, credit bureaus and debt collectors.
5. Create a business website-: This is one business that is very easy to run from the comfort of your home especially if you have a very strong online presence. You should create a website with extensive information about the services you provide. It would also help to integrate a blog into your website to drive traffic.
On your blog, you can discuss topics relating to credit repair to inform your potential and existing clients of things they need to know. You can write on topics bordering on how they can prevent bad credits, how they can cope with bad credits and how they can enjoy some essential services notwithstanding their bad credit status. This way, they would be able to trust you and understand that you have their best interests at heart.
6. Engage in E-mail marketing campaigns-: Another thing that would help you get more clients for your business is engaging in e-mail marketing campaigns. By sending regular informative e-mails to your clients, they would see that you understand the business and would be willing to give your services a try.
7. Networking-: You should also do a lot of networking, not only to gain patronage, but also to learn more about the business. You should make friends with people in the financial management industry like debt collection agencies, bankers, mortgage brokers, real estate agents to mention few. You should also join trade unions and attend industry events regularly.
8. Advertising-: You can advertise easily on the internet using Google ad campaigns and other web advert tools. A simple caption like: “Bad credit? Let’s help you out” can generate a lot of traffic from people who need such services to your website. You can also think about buying leads and cold calling to get more clients.
Remember, you don’t have to lie to your clients or promise what you cannot deliver; make them understand that it is not a guaranteed service and charge clients only based on the services you deliver.