3 How To Become A Credit Repair Specialist

(doylc.com) How To Become A Credit Repair Specialist - If you have good credit and are responsible with your personal finances, you may be interested in sharing your expertise with others as a credit repair specialist. While there aren't specific requirements to be a credit repair specialist, there are certifications you can get that will make you more trustworthy to potential clients. Once you have the appropriate education and training, you can look for a position with an established agency or strike out on your own as an independent credit repair specialist.

• Education and certification

Choose an appropriate major. While there aren't necessarily specific educational requirements for a credit repair specialist, most people who work in the industry have at least a bachelor's degree in a finance-related discipline.

If you're still in school or thinking about pursuing a degree again, focus on courses in personal finance and the consumer credit industry. Take courses on bankruptcy, taxes and other legal issues that may affect customers with poor credit.

Learn how to negotiate effectively on behalf of your clients and communicate clearly and effectively in writing.

Get additional credentials if needed. If you are interested in further education, training to become a Certified Public Accountant (CPA) or studying law can advance your career. These credentials also enable you to offer a wider range of services to your customers.

Recognize the investment involved and determine if it's worth it. It is often better to start working life after the bachelor's degree. If after work you decide you want additional qualifications, you can look at part-time programs.

Get certified. While certification is usually voluntary, going through a certification program can improve your reputation and educate you on issues specific to the consumer credit industry.

Because certification is entirely voluntary, there are a number of different companies that offer licensing or certification programs. You can check these programs online to choose the most suitable one for you.

You can also look at which programs are more popular with established credit repair specialists in your area. If a certification is more popular than others, it will be better recognized by potential customers.

Expect to spend time studying for an exam and pay a fee, typically a few hundred dollars or less, for certification.

Use continuing education to your advantage. Many certification programs require you to complete a certain number of continuing education hours each year to retain your license. These courses will keep you up to date with the latest topics and trends in personal finance.

Look for courses or programs that directly impact the types of clients you have or want to attract.

Brainstorm a list of other legal and financial issues your clients typically face, and keep up to date there as well.

• Join an established credit repair agency

Check applicable laws. Credit repair is a highly regulated business. As a credit repair specialist, you need to understand what laws apply to your business, even if you work as an employee for someone else.

For example, if you reside in the United States, there are federal and state laws that regulate the credit repair industry. These laws dictate what you promise your potential customers and how you can advertise your services.

If you come across a credit repair agency that operates outside of the law, don't work for them. Associating with such a company could have serious negative effects on your reputation and possibly land you in legal trouble.

Look for local agencies. Typically, legitimate credit counseling or credit repair agencies must be licensed by the government. Your state consumer finance department usually has a list of legitimate agencies in your area.

Search for these agencies online and check their websites to see if they are hiring. You can also just call or come by in person to inquire.

When approaching an agency, be professional. Tell them you're looking for a job right away so they know you're not a potential client.

Check out the background of the agency. Before speaking to a credit counseling or credit repair agency, check their background and reputation as if you were a potential customer. Find out if there have been any complaints against the agency and what previous clients say about the agency's services.

If the agency has been reported to government authorities, or if it has a significant number of disgruntled clients, this can be a red flag that the agency is not entirely accurate.

Take a close look at the agency's website and other marketing materials and be aware of what they promise or guarantee to their clients. Many complaints can be related to unreasonable expectations.

Consider buying a franchise. Many established credit repair agencies have franchise opportunities available. These can require a larger initial investment than if you were to start your own business.

A franchise is something of a cross between starting your own independent business and joining another agency as a paid employee. On the one hand, you are your own boss. On the other hand, you sell services with an established brand and reputation.

As with joining an established agency as an employee, you should carefully review the reputation of any franchise opportunity. The most important thing a franchise gives you as a credit repair specialist is an established reputation - make sure that reputation is something you actually benefit from.

• Starting a credit repair business

Consult practicing credit repair specialists. An established and reputable credit repair specialist can help get your business off the ground. Someone close to you knows the rules and regulations that apply to your business.

Research the specialist's background as if you were thinking of hiring them yourself. Make sure everyone you interview has a good reputation in the industry.

Especially if you are just starting out, you should consider working with an established credit repair specialist so you can familiarize yourself.

Identify your niche. There are many credit repair companies out there. If you want to start your own campaign, you'll get a lot further by targeting specific types of consumers. For these consumers, you bring a deeper understanding of their financial problems.

Rely on your own experiences to find your niche. For example, if you recently needed to repair your own credit after a divorce, you should focus on clients who recently got divorced. Your experience gives you more empathy and understanding for these customers and the issues they face.

Create a business plan. Although you can start your own credit repair business with little to no startup funding, a formal business plan will keep you organized. Use your business plan to set realistic goals for your business and lay out the steps to achieve those goals.

As part of your business plan, you also have the option of doing a little market research so you can determine how much you can charge for your services and what specific services you should offer. Start small and don't overdo it until your business is more established.

Be aware of any start-up costs associated with your business and determine how to get the funding you need. Most independent credit repair companies do not require a large upfront investment initially, but licensing or registration fees may apply.

Check applicable laws. In some locations, you may be required to register with local, state, or national governments or apply for a license. If you are running your own credit repair business, it is up to you to obtain all the necessary licenses.

If you are in the United States, you can usually find out what licenses you need by checking your state's Attorney General's Office website.

Some local governments may also require you to be licensed as a home business, especially if you plan to meet with your clients at home.

You must also obtain the necessary tax identification numbers so that you can accurately report the income you earn from your business to state and federal governments.

Get any required insurance or bonds. The government may require liability insurance or other business insurance to protect you and your customers from mistakes you might make that would negatively impact their creditworthiness.

Although you are not legally required to have liability insurance, you should still consider it necessary. The premiums aren't usually very high, and the coverage can save you a lot of money if you get sued.

The way you organize your credit repair business also affects your personal liability. By default, your business is considered a sole proprietorship, which means disgruntled customers could potentially sue you personally. Consider organizing as an LLC to limit your personal liability and keep your business operations separate from your personal finances.

Make a list of contacts at credit bureaus. As a credit repair specialist, you can expect to contact the credit bureaus numerous times on behalf of your clients. Try to work with the same people on a regular basis to build a collegial working relationship.

Ask customer service representatives if you can contact them directly if you have inquiries on behalf of a customer.

Send a quick thank you note or email when someone is particularly helpful. For example, you might write: "Thank you for your help in correcting the errors on Sally Sunshine's credit report. With your help, she was able to refinance her home. I look forward to working with you again in the future." "

Subscribe to business software and services. There are a lot of companies out there marketing apps and subscription-based web services to independent credit repair specialists. Take some time to evaluate these products so you can choose the ones that will actually benefit you and your clients.

Many products offer a free initial trial period. Take advantage of these trials so you can decide which products work best for your business. Mark the dates of the trials expire and set reminders, since many of them automatically bill a subscription when the trial is over.

Even if you don't get specific credit repair software, you still need basic business accounting software to organize your company's finances. This will also help you ensure that you are tracking and claiming any possible business deductions from your taxes.

Win your first customers. To get your credit repair business off the ground, you need references from clients you've helped. Credit and finance are personal matters, and people probably won't hire you without proving you can be trusted.

A blog can be a great way to get started and promote yourself online. Providing financial advice is a great way to showcase your knowledge and expertise. Add a note at the bottom of each blog post promoting your services.

You can use social media platforms to reach target consumers and potential customers, but focus on one or two platforms instead of trying to be present on all of them. Make sure you're able to keep up with your accounts and contribute to them in a consistent way.

You may also be able to sign up for referral services that send customers to you. Most of these services charge a fee, so research them carefully before signing up so you know exactly what you're paying for.