Can Your Credit Repair Business be Profitable?

If you’re wondering; can your credit repair business be profitable? The simple answer is yes. The more important questions are: how profitable is the credit repair business, how much of that market can you expect to take and what kind of ROI should you expect? And then ultimately, will you need a high risk merchant account?

The credit repair industry is well established, the market is wide and the future looks bright according to some analysts. Millennials are joining the market and spending a lot. This generation has bloomed late, and they are entering the market with lots of existing debt. They are prime for credit repair.

Consumer debt in America reached $4.1 trillion by June this year and $1.072 trillion of that is credit card debt. Many Americans are struggling to pay off their credit card debt and are looking for professionals to help them, thus the high demand for credit repair companies.

If you’re looking to start your own credit repair business, the first question you would probably ask is: will it be profitable? Let’s find out:

For starters, starting your credit repair business is easy.

While starting a business is generally hard, building a credit repair company is actually simpler than you think. Some startups were even founded at home and now, they’ve grown into huge businesses helping hundreds of clients at a time.

A credit repair business is also one of the most affordable startups today because all you need is a computer, software and phone to get started.

Those who are in the same industry say that this business is a lot easier to scale because it doesn’t demand a lot of work but it still proves to bring in huge revenues, especially if you keep existing clients happy and add new ones each month.

Can your credit repair business be profitable? If you get the right start and you ensure you keep your clients happy, your credit repair agency will absolutely be profitable.

Everything you need to know, you can learn through training.

Credit repair isn’t actually that complicated, but it requires the right strategy. This is why most clients would choose to hire professionals to help them improve their credit score rather than do it all by themselves.

But you don’t have to earn a degree or spend years just to run a credit repair business efficiently. Everything you need to know about this industry, you can learn through training programs that are available online.

It’s also beneficial to be a member of a non-profit credit repair trade association that follows the standards set by the FTC and CFPB. Credibility is one of your strongest marketing strategies and being a part of organizations like the Credit Consultants Association (CCA) or National Association of Credit Services Organizations (NACSO) will give you that boost. Simple memberships like this can easily help you earn more profits in the future by bringing in more business for your company.

You can start by doing things yourself and grow your business as demand increases.

Unlike other businesses where you have to hire a team right away, you can run your credit repair company by yourself when you start. Since you’ll still have a few clients, you can do the legwork of reviewing credit reports, identifying material errors and gathering compelling evidence for your client’s dispute. This will help you save money on manpower, which will also translate to bigger profits.

How much do credit repair specialists make?

Before you ask “how profitable is the credit repair business”, ask how much the average employee can stand to make.

Credit repair specialists can work as contractors or for credit repair businesses. Their salaries can depends on federal, state and local fees and taxes. For the most part, a credit repair specialist will earn anyway from $40,000 to $135,000 a year, with a median yearly salary of $70,000 per year.

The bottomline

Can Your Credit Repair Business be Profitable? Like any other business, you can only guarantee profits for your credit repair company if you do things right. This means getting the right training, joining the right organizations and building your business on the foundation of credibility.

Yes, a credit repair business can be extremely profitable if you know how to run it efficiently and take advantage of the huge demand that’s going on in the market today. Find a merchant account processor that can help you start your business and remain profitable.