credit report company business plan

Credit Repair Business Plan Template

Written by Dave Lavinsky

Credit Repair Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their credit repair companies.

If you’re unfamiliar with creating a credit repair business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a credit repair business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Credit Repair Business Plan?

A business plan provides a snapshot of your credit repair business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Credit Repair Company

If you’re looking to start a credit repair business or grow your existing credit repair company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your credit repair business to improve your chances of success. Your credit repair business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Credit Repair Businesses

With regards to funding, the main sources of funding for a credit repair business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for credit repair companies.

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How to write a business plan for a credit repair business.

If you want to start a credit repair business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your credit repair company business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of credit repair business you are running and the status. For example, are you a startup, do you have a credit repair business that you would like to grow, or are you operating an established credit repair business that you would like to sell?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the credit repair industry.
• Discuss the type of credit repair business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of credit repair business you are operating.

For example, you might specialize in one of the following types of credit repair businesses:

• Credit bureau disputes: This type of credit repair business involves reviewing the customer’s credit report and filing credit bureau disputes on their behalf to get errors such as inaccurate late payments, bankruptcies, and foreclosures removed.
• Legal services: This type of credit repair business is operated by lawyers or paralegals who help customers if their credit has been impacted by incidents such as identity theft, medical bills, and student debt.
• Full services credit repair: This type of business provides customers with a full suite of credit repair services from consultation to cease-and-desist letters, and identity theft protection.
• DIY Credit Repair: This type of business provides software to help customers navigate the credit repair process themselves.

In addition to explaining the type of credit repair business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of cases with positive outcomes, reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the credit repair industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the credit repair industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your credit repair company business plan:

• How big is the credit repair industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your credit repair business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your credit repair business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of credit repair business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other credit repair businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes credit consultants, other types of credit advisors, and free credit service providers. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of credit repair business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a credit repair business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of credit repair company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide goodwill letters to creditors, credit monitoring, or paralegal services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your credit repair company. Document where your company is situated and mention how the site will impact your success. For example, is your credit repair business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your credit repair marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your credit repair business, including answering calls, meeting with clients, corresponding with creditors, billing and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your credit repair business to a new city.  

Management Team

To demonstrate your credit repair business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing credit repair businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a credit repair business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.  

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you work with 5 clients per day, and/or offer discounts for referrals? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.  

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your credit repair business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a credit repair business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of relevant professional certifications you possess.  

Writing a business plan for your credit repair business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert credit repair business plan; download it to PDF to show banks and investors. You will understand the credit repair industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful credit repair business.  

Credit Repair Business Plan Template FAQs

What is the easiest way to complete my credit repair business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your credit repair business plan.

How Do You Start a Credit Repair Business?

Starting a credit repair business is easy with these 14 steps:

• Choose the Name for Your Credit Repair Business
• Create Your Credit Repair Business Plan
• Choose the Legal Structure for Your Credit Repair Business
• Secure Startup Funding for Your Credit Repair Business (If Needed)
• Secure a Location for Your Business
• Register Your Credit Repair Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Credit Repair Business
• Buy or Lease the Right Credit Repair Business Equipment
• Develop Your Credit Repair Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Credit Repair Business
• Open for Business

Learn more about how to start your own credit repair business .

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Credit Repair Business Plan

If you have all the knowledge about credit scores, and people often take your advice to repair their credit scores, then this business can be rewarding. So, are you planning to start your credit repair business? If yes, then this business plan template will guide you in writing yours.

Need help writing a business plan for your credit repair business? You’re at the right place. Our credit repair business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Credit Repair Business Plan?

Writing a credit repair business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

• This section may include the name of your credit repairing business, its location, when it was founded, the type of credit repairing business (E.g., credit repair services, credit counseling services, credit repair affiliate), etc.

Market opportunity:

Product and services:.

• For instance, you may include credit counseling, credit repair, etc as your services.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

• Credit Repair Services: These services could involve negotiating with creditors, challenging mistakes on credit reports, and giving guidance on raising credit ratings.
• Credit Counselling Services: A credit counseling business offers advice to clients on how to better manage their money and credit scores.
• Credit Education Services: A credit education service gives customers knowledge and tools on how to raise their credit scores and take control of their money.
• Describe the legal structure of your credit repair business, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, individuals with poor credit, business owners, etc, would be an ideal target audience for a credit repair business.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, alternative credit scoring models are getting popular; explain how you plan on dealing with this potential growth opportunity.

Regulatory environment:

Here are a few tips for writing the market analysis section of your credit repair business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your credit repairing services:

Mention the credit repair services your business will offer. This list may include services like,

• Credit report analysis
• Dispute resolution
• Debt management
• Credit counseling

Describe each service:

Additional services:.

In short, this section of your credit repair company business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, fast results, customized services, or transparent pricing could be some of the great USPs for a credit repair company.

Pricing strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your credit repair service business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your credit repair business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, technology:.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your credit repair business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. customer support manager.) involved in the credit repair business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your credit repair services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your credit repair business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample credit repair business plan will provide an idea for writing a successful credit repair plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our credit repair business plan pdf .

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Key Elements of a Business Plan

Frequently asked questions, why do you need a credit repair business plan.

A business plan is an essential tool for anyone looking to start or run a successful credit repair business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your credit repair company.

How to get funding for your credit repair business?

There are several ways to get funding for your credit repair business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your credit repair business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your credit repair business plan and outline your vision as you have in your mind.

What is the easiest way to write your credit repair business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any credit repair business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Credit Repair Business Plan Template

Written by Dave Lavinsky

Credit Repair Business Plan

You’ve come to the right place to create your Credit Repair business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Credit Repair businesses.

Below is a template to help you create each section of your Credit Repair business plan.

Executive Summary

Business overview.

Lincoln Credit Repair is a new credit repair company located in Lincoln, Nebraska. We offer a full suite of credit repair services to the residents of Lincoln who are struggling financially and need to turn their credit around. Some of the services we offer include a free consultation, identity theft protection, credit disputes, and legal representation. At Lincoln Credit Repair, we know that many of our clients feel overwhelmed by their financial and credit troubles. Our mission is to help in any way possible to repair their credit and turn their life around.

Lincoln Credit Repair is founded by Gary Smith, who has been a credit repair attorney for two decades. As such, he has extensive experience helping hundreds of clients repair their credit and turn their life around. After decades of work, he was tired of working for large firms that didn’t care about their clients nor offer personalized, client-oriented service. His mission with Lincoln Credit Repair is to make the client the central focus, so we can provide the exact services they need to repair their credit.

Product Offering

Lincoln Credit Repair offers a full suite of credit repair services to restore our clients’ credit. These services include sending cease and desist letters, providing legal representation, disputing credit reports, providing identity theft protection, and more. The exact services we provide will depend on each client’s needs as well as what they are willing to pay for. Every potential client gets a free 30-minute consultation that will help us determine what services they need.

Customer Focus

Lincoln Credit Repair will serve the residents of Lincoln, Nebraska. We expect that most of our clients will have a very low credit score (below 600) and earn less than the local median income. Traditionally, most people seek credit repair services in the 35-55 age range, as this is the age range when many significant life and financial changes occur.

Management Team

Lincoln Credit Repair is run by Gary Smith. Gary is an experienced credit repair attorney with over two decades of experience. He has helped hundreds of clients repair their credit and turn their life around. However, Gary has spent his career working for large firms that focus on profits over people. As such, they charge high prices and don’t cater their services to each client’s needs. Gary is establishing Lincoln Credit Repair as a small firm that caters to the needs of the client and offers the best credit repair services in the local market.

Success Factors

Lincoln Credit Repair will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and qualified team of credit repair professionals
• Wide range of credit repair services that are personalized to each client
• High-quality services for an unbeatable price

Financial Highlights

Lincoln Credit Repair is seeking $235,000 in debt financing to launch its credit repair company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs, marketing costs, and working capital. The breakout of the funding is below:

• Office space build-out: $25,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $25,000
• Working capital: $25,000

The following graph below outlines the financial projections for Lincoln Credit Repair.

Company Overview

Who is lincoln credit repair.

Lincoln Credit Repair is a new credit repair company located in Lincoln, Nebraska. We know that many people in the Lincoln area have lived through significant financial challenges that have destroyed their credit. Our mission is to help these individuals repair their credit and get their lives back on track.

  To do this, we offer several services. Individuals can hire us to dispute errors in credit reports, provide identity theft protection, write cease and desist letters, and provide other legal representation. All potential new clients are offered a free 30-minute consultation so we can determine exactly which services will help them the most.

Lincoln Credit Repair’s History

Gary incorporated Lincoln Credit Repair as an S Corporation on July 1st, 2023. Since incorporation, the company has achieved the following milestones:

• Found a studio space and signed a Letter of Intent to lease it
• Developed the company’s name, logo, social media accounts, and website
• Determined equipment and fixture requirements

Lincoln Credit Repair’s Services

Lincoln Credit Repair will offer a full suite of credit repair services to its clients. Each client can choose which services they want to pay for based on their needs and budget. Some of the services we offer include:

• Identity theft protection
• Credit report disputes
• Legal representation

All new clients get a free 30-minute consultation to help us determine which services they need. All services are charged monthly.

Industry Analysis

Revenue for the credit repair industry is expected to grow over the next several years. According to MarketWatch, the global credit repair industry was worth $6.6 billion in 2021 and is expected to exceed $7.4 billion in 2027. Credit repair services are in high demand as many challenges can lead to a person’s credit getting ruined. Divorce, identity theft, job loss, and credit report errors are all common reasons why thousands of credit scores tank yearly.

There are several factors influencing the industry’s growth. First of all, rising interest rates affect consumers’ ability to service their debt quickly. The interest can easily become overwhelming, and many people seek credit repair and other financial services for help. Similarly, the rise in mortgage rates will lead to a higher rate of mortgage defaults, which means many homeowners will need credit repair services. Finally, the rise in cybersecurity attacks and identity theft/fraud has led to many people needing to dispute errors in their credit reports and restore their credit history. Since identity thefts have been increasing over the past several decades, we expect this to become a significant issue for the industry in the near future.

Customer Analysis

Demographic profile of target market, customer segmentation.

Lincoln Credit Repair will primarily target the following customer profiles:

• Individuals with poor credit (score under 600)
• Middle age residents and couples
• Individuals and families earning less than the local median income

Competitive Analysis

Direct and indirect competitors.

Lincoln Credit Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

The Credit People

The Credit People is a popular credit repair company that specializes in helping individuals improve their credit scores and overall credit health. They offer personalized solutions, including credit report analysis, dispute resolution, and guidance on building a positive credit history. The Credit People has three subscription plans, including a standard plan, a premium plan, and a premium flat rate plan. The premium plans offer a full suite of services, while the standard plan offers only basic credit dispute services. With a commitment to transparency and customer satisfaction, the Credit People maintain open communication throughout the process and offer satisfaction guarantees.

Lexington Law

Lexington Law is a prominent credit repair company known for its expertise in helping individuals improve their credit profiles. They offer comprehensive services, including credit report analysis, identification and dispute of inaccuracies, and personalized strategies for credit improvement. They also offer a free consultation and credit assessment to help clients see which services are best for them. Lexington Law is one of the most popular and prominent credit repair firms in the industry. As such, we expect them to be our biggest competitor.

The Credit Pros

The Credit Pros is a reputable credit repair company that offers a full suite of credit repair services as well as other financial and wealth management services. They have three membership plans: money management, prosperity, and success. Customers who get the most basic plan are given standard services, such as a budgeting system, dark web monitoring, and TransUnion alerts. Customers who get the more premium plans will have access to several bureau reports, creditor interventions, cease and desist letters, and letters of reference. The Credit Pros is also popular for its free consultation services as well as its low and transparent pricing. Since they are the most affordable competitor, we expect to compete with Credit Pros heavily for customers looking for affordable credit repair services.

Competitive Advantage

Lincoln Credit Repair will be able to offer the following advantages over the competition:

• Client-oriented service : Lincoln Credit Repair is committed to providing client-oriented service that offers personalized services for every client.
• Management : Gary Smith has been extremely successful working in the credit repair sector and will be able to use his previous experience to grant his clients extensive credit repair services. His unique qualifications will serve customers in a much more sophisticated manner than Lincoln Credit Repair’s competitors.
• Affordability : Many people who hire credit repair services do not have much disposable income to spend on these services. Many competitors are too expensive for our target market, so they end up struggling with their poor credit alone. Lincoln Credit Repair will provide its services at a much more affordable rate than the competition in order to help as many local residents as possible.

Marketing Plan

Brand & value proposition.

Lincoln Credit Repair will offer a unique value proposition to its clientele:

• Qualified and compassionate team that is committed to helping our clients.
• Unbeatable pricing for essential, life-changing services.
• Large firm experience in a small firm environment.

Promotions Strategy

The promotions strategy for Lincoln Credit Repair is as follows:

Word of Mouth/Referrals

Gary Smith has built up an extensive list of contacts over the years by providing exceptional service and expertise to his clients. Several clients have already agreed to switch to Lincoln Credit Repair once the company launches. The continued level of great service and expertise will lead to Gary’s clients spreading the word about our company. Lincoln Credit Repair will also offer discounts and other incentives for every successful referral.

Gary will invest in several billboard ads strategically located at busy intersections that receive thousands of traffic daily. The Marketing Manager will develop the print for the billboard design.

Social Media Marketing

Lincoln Credit Repair will invest in advertising on social media platforms such as Facebook and Instagram. By using targeted social media marketing, Lincoln Credit Repair will be able to reach the appropriate target audience in Lincoln. Before opening, Gary will hire a marketing manager to develop the branding and photography needed to create captivating social media posts.

Website/SEO Marketing

Lincoln Credit Repair will invest in a strong SEO presence so that when someone enters “Lincoln credit repair” or “local credit repair services near me” in their Google or Bing search bar, Lincoln Credit Repair will show up at the top of the list.

The pricing of Lincoln Credit Repair will be moderate so customers feel they receive excellent value when purchasing our credit repair services.

Operations Plan

The following will be the operations plan for Lincoln Credit Repair. Operation Functions:

• Gary Smith will be the sole owner of Lincoln Credit Repair. He will oversee the general operations of the company. In the early months, he will be the only credit repair attorney and the sole employee providing credit repair services. Gary will spend the next several months hiring the following:
• An Administrative Assistant who will oversee all administrative aspects of running the business. This will include bookkeeping, tax payments, and payroll of the staff. They will also help with scheduling appointments and answering client questions.
• A Marketing Manager who will provide all sales, marketing, and PR campaigns.
• Once the company becomes profitable and has a long list of clients, Gary will hire other credit repair specialists and attorneys to provide the company’s services.

Milestones:

Lincoln Credit Repair will have the following milestones completed in the next three months.

• 8/1/2023 – Finalize contract to lease office space
• 8/15/2023 – Begin office build-out
• 9/1/2023 – Start hiring key employees
• 9/15/2023 – Begin networking at industry events
• 10/1/2023 – Begin marketing campaigns
• 10/15/2023 – Lincoln Credit Repair opens its office for business

Though Gary has never run a company of his own, he has considerable experience in the industry and knows how to run the general operations of a credit repair company. He is in the process of hiring staff who will help him manage the marketing, accounting, and administrative aspects of the business.

Financial Plan

Key revenue & costs.

The revenue drivers for Lincoln Credit Repair will be the fees we charge for our credit repair services.

The cost drivers will primarily include the overhead costs required to run Lincoln Credit Repair. The expenses will include payroll, rent, utilities, office supplies, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Number of clients per year: 100
• Office lease per year: $30,000
• Average monthly fee charged for our services: $100/month

Financial Projections

Income statement, balance sheet, cash flow statement, credit repair business plan faqs, what is a credit repair business plan.

A credit repair business plan is a plan to start and/or grow your credit repair business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Credit Repair business plan using our Credit Repair Business Plan Template here .

What are the Main Types of Credit Repair Businesses? 

There are a number of different kinds of credit repair businesses , some examples include: Credit bureau disputes, Legal services, Full services credit repair, and DIY Credit Repair.

How Do You Get Funding for Your Credit Repair Business Plan?

Credit Repair businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Credit Repair Business?

Starting a credit repair business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Credit Repair Business Plan - The first step in starting a business is to create a detailed credit repair business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your credit repair business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your credit repair business is in compliance with local laws.

3. Register Your Credit Repair Business - Once you have chosen a legal structure, the next step is to register your credit repair business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your credit repair business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Credit Repair Equipment & Supplies - In order to start your credit repair business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your credit repair business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful credit repair business:

• How to Start a Credit Repair Business

We earn commissions if you shop through the links below.  Read more

Credit Repair Business

Back to All Business Ideas

How to Start a Credit Repair Business

Written by: Esther Strauss

Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 24, 2021 Updated on May 7, 2024

Investment range

$8,550 - $27,100

Revenue potential

$24,000 - $120,000 p.a.

Time to build

1 - 3 months

Profit potential

$10,000 - $30,000 p.a.

Industry trend

If you enjoy helping people stabilize their lives and financial future, a credit repair business could be a great fit for you. The credit repair industry, which helps people boost their credit scores, took a major hit during the covid-19 pandemic, losing a quarter of its revenue in 2020. But analysts expect the industry to recover with slow but steady growth through 2026, which means the opportunity is there for the taking. 

Of course, starting any business requires hard work and patience. Thankfully, you’ve come to the right place, as this article lays out every step you’ll need to take to develop a strong plan and get your credit repair business up and running and giving people greater financial opportunity!

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Before you dive into starting your business, let’s take a step back and observe what’s happening in the industry.

Pros and cons

The credit repair industry comes with both pros and cons. Let’s take a look at some of them.

• Easy to scale, thanks to software tools
• Everybody needs good credit
• Low startup costs
• Some clients are wary of fraud
• Highly competitive due to few barriers to entry

Credit repair industry trends

Economic growth in the post-pandemic recovery could lead to increased demand for credit repair services. As consumers become more confident, they tend to spend more, which results in greater debt and more need for credit repair. 

Industry size and growth

• Industry size and past growth – The US credit repair industry is worth $3.4 billion, after contracting an average of 6% per year since 2017, according to market analyst IBISWorld.(( https://www.ibisworld.com/industry-statistics/market-size/credit-repair-services-united-states/ )) 
• Growth forecast – IBISWorld expects to see a turn-around through 2026, as the industry begins to recover from the pandemic slump.
• Number of businesses – More than 40,000 credit repair businesses operate in the US. The number has steadily declined since 2012.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/credit-repair-services-united-states/ )) 
• Number of people employed – The industry employs more than 46,000 people.(( https://www.ibisworld.com/industry-statistics/employment/credit-repair-services-united-states/ ))

Trends and challenges

Here are some of the trends shaping the industry:

• Debt-ridden Americans are filing for bankruptcy instead of seeking credit repair services
• Increasing use of online credit repair services

Some of the challenges faced by operators are:

• High level of competition in the industry
• Distrust in credit repair companies

How much does it cost to start a credit repair business?

If you start from home and negotiate monthly payments for your surety bonds and software, you could launch a credit repair business for as little as $5,000. But if you want to invest more in your business and have a large office with staff, you could spend $50,000 or more to cover startup costs and your first month in business. 

On average, though, most credit repair startups need around $20,000 to open their doors. 

How much can you earn from a credit repair business?

The main factors affecting your revenue are the number of clients you have and the primary services they purchase. Naturally, if you get great results for your clients, the more customers you’ll have in the future.

Your clients will usually pay a flat fee or a recurring payment for your services. But it’s up to you to find what structure works best.

Credit repair businesses enjoy profit margins of 25% to 40%, and most charge $79-$129 per month for their services. So if you start out with 20 customers paying $100 a month in your first year or two, you’ll do $24,000 in annual revenue and almost $10,000 in profit, assuming a 40% margin. 

If you’re able to push your customer numbers up to 100, you’ll be generating annual revenue of $120,000. At this stage, you’d hire more staff, reducing your profit margin to 25%. You’ll be making $30,000 in annual profit.

What barriers to entry are there?

There are a few barriers to entry in the credit repair business. The main one is the high level of competition, because it’s easy to start a credit repair business. On the flip side, many of these businesses fail relatively quickly. So if you’re able to stick it out and build a track record as a credit repair specialist , success may knock on your door.

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Step 2: hone your idea.

Now it’s time to hone your idea so that your credit repair service can begin taking shape. First, let’s find out how to identify your target market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Your competition will be credit repair firms targeting the same market. While large companies that target broad demographics will still compete with you, you’ll have an edge in your market due to targeted branding.

Once you’ve got a list of competitors, here are some questions to examine:

• What are my competitors’ value propositions?
• How much do they charge for their services?
• What’s included in their services?
• What do customer reviews say about these companies?
• What can I do to differentiate myself from these businesses?

What? Determine your services

Running a credit repair business requires a varied schedule. Here are a few everyday tasks:

• Onboard new clients: New customers are the key to growing your business, so you need to make sure that your clients are informed about the credit repair process. You’ll also need to secure the new client’s credit report as part of this process.
• Disputing claims: This includes creating and sending dispute letters and communicating with the required credit bureau or lender. Some claims you will dispute include late payments from debt collectors (also known as a debt collection agency ).
• Communicating with existing clients: You’ll need to regularly check in with clients to maintain their trust as well as update them on their credit score.
• Marketing: To get new customers, you’ll need to run marketing campaigns.

How much should you charge for your services?

Most credit repair services charge a monthly fee between $79 and $129. While this is the average, to find your ideal rates, you’ll need to consider your costs and the time and effort it takes to complete your service.

Some credit repair services also charge a setup fee for initial document processing and administration. But, this is a grey area as the Credit Repair Organizations Act prohibits credit repair companies from charging upfront service fees. So, as a budding credit repair professional, you likely want to steer clear of upfront fees.

You’ll need to determine an acceptable price for your local market and then tweak it based on expenses. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Identifying your target market is vital for maximizing your marketing dollars and the effort you spend on your business. You’ll first need to determine who would benefit from your services. An answer to your target market could be “people with bad credit.” While this is valid, it’s also too broad. You could narrow your market down by factors like age, gender, and earnings. 

For example, you could target millennials who need help improving their credit for first home purchases, or in regards to student loan debt. To market your services to this demographic you might use social media platforms like Instagram and TikTok. 

Where? Choose your business premises

Credit repair businesses can be run from home thanks to technology, but it may be worthwhile to an office, as face-to-face meetings are better for building trust than Zoom calls.

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Credit Repair Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “credit”, boosts SEO
• Choose a name that allows for expansion: “Credit Care Services” over “Student Loan Relief Services”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 250 unique credit repair business name ideas here . If you want your business name to include specific keywords, you can also use our credit repair business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Credit Repair Business Plan

Here are the key components of a business plan:

• Executive Summary: A concise overview of your credit repair business, summarizing its mission, goals, and key points to grab the reader’s attention.
• Business Overview: Detailed information about your credit repair business, including its mission, vision, structure, and legal status.
• Product and Services: Explanation of the specific credit repair services you offer, such as credit report analysis, dispute resolution, and financial counseling.
• Market Analysis: Examination of the credit repair industry, target market demographics, and trends to justify the demand for your services.
• Competitive Analysis: Evaluation of competitors in the credit repair market, highlighting your unique selling points and strategies to gain a competitive edge.
• Sales and Marketing: Outline of your sales and marketing strategies, including customer acquisition channels, advertising, and promotional efforts.
• Management Team: Introduction to key individuals responsible for running the credit repair business, emphasizing their skills and experience.
• Operations Plan: Details on day-to-day operations, including the credit repair process, technology requirements, and partnerships essential for smooth functioning.
• Financial Plan: Financial projections, including startup costs, revenue forecasts, and break-even analysis, providing a clear picture of the business’s financial viability.
• Appendix: Additional documents or information supporting the credit repair business plan, such as resumes of key team members, market research data, and any legal documents.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to credit repair. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your credit repair business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a credit repair business.

Step 8: Apply for Licenses/Permits

Starting a credit repair business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your credit repair business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

Strong credit repair software options include DisputeBee , TurboDispute , and Credit Repair Cloud . 

DisputeBee streamlines the entire dispute process by automating it from start to finish. It allows you to import a client’s credit report to automatically generate dispute letters and track client progress. TurboDispute’s cloud-based software can help you manage everything business-related. From managing your team and clients to your affiliates and leads, they’ve got you covered. CRC provides a robust CRM, automated disputing, and even a recurring billing solution. Their all-in-one platform even helps you scale your credit repair business.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Professional Branding — Ensure your branding communicates trust, professionalism, and financial expertise through your logo, business cards, website design, and overall online presence.
• Website & SEO — Create an informative website that details your services, the credit repair process, and showcases client testimonials, optimized for keywords related to credit repair, debt management, and financial counseling.
• Direct Outreach — Network with local financial advisors, realtors, and lenders to establish a referral base that can direct clients needing credit repair services to your business.
• Social Media Engagement — Utilize LinkedIn for professional networking, and platforms like Facebook and Twitter to share credit tips, client success stories, and relevant financial news.
• Content Marketing — Maintain a financial education blog offering advice on credit repair and improving financial habits, supported by webinars and online workshops that educate on credit management and financial wellness.
• Professional Collaborations — Partner with financial institutions like banks and credit unions to reach clients who could benefit from credit repair services, and collaborate with local businesses to include your services in their employee wellness programs.
• Client Loyalty Programs — Implement a referral program that incentivizes clients to refer others to your services, and offer ongoing credit monitoring or follow-up consultations to help clients maintain their credit improvements.
• Targeted Advertising — Employ targeted digital advertising on platforms like Google Ads and social media to reach individuals actively searching for credit repair services.
• Email Marketing — Build an email marketing campaign to nurture leads, share client success stories, and continuously provide valuable financial tips and updates.
• Customized Financial Services — Offer tailored credit counseling and repair services that meet the specific needs of your clients, ensuring effective and personalized credit solutions.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your credit repair business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your credit repair business could be:

• Fastest credit repair in your area
• Better credit guaranteed!

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a credit repair business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in the credit industry for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in credit repair. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a credit repair business would include:

• Credit Repair Specialist – analyze the financial situation of prospective clients
• Administrative Assistant – handles clerical tasks
• Marketing Lead – generates new leads

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Credit Repair Business – Start Making Money!

You’re now ready to start repairing credit and improving lives. Now, how will you find your first client? There are many different ways. You can find business through extensive networking, an efficient referral system, or social media. Remember, having a strong social media presence could spell the difference for you. 

On behalf of your clients, you will work with credit bureaus and creditors to remove errors from your client’s credit report. Some examples of creditors include banks and credit card issuers. It’s wise to touch base and establish rapport with these companies first. With these preparations, you should be well on your way to success!

• Credit Repair Business FAQs

Yes, a credit repair business can be profitable, particularly if you start from home with low overhead costs. It often operates on a recurring revenue model, where clients pay a monthly fee for credit monitoring services.

Starting a credit repair business can be risky, as it is a highly regulated industry that requires compliance with federal and state laws, as well as strict ethical standards.

While it’s not illegal to charge for credit repair services, it is illegal to charge any upfront fees. The Credit Repair Organizations Act states that no credit repair organization can charge or receive any money or valuables for any service before the service is rendered. So make sure that you don’t charge upfront fees for any credit counseling.

To acquire credit repair clients, establish a strong online presence, utilize social media, offer free educational resources, network with professionals, obtain client testimonials, and consider targeted advertising.

The duration of the credit repair process varies based on individual circumstances, the complexity of credit issues, and the effectiveness of the chosen strategies. It can take several months to a year or more to see significant improvements in credit scores and overall credit health.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Credit Repair Business Name
• Create a Credit Repair Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Credit Repair Business - Start Making Money!

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Credit Repair Business Plan Sample

Apr.30, 2018

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Table of Content

Do you want to start credit repair business?

Do you want to start your own credit repair business ? Well, there are many benefits of starting a credit repair business, the biggest one of which is the extremely low initial investment required for its startup. Secondly, you can also start it from a small office or even a virtual location and can increase your setup with time. Credit repair companies improve the credit ratings of clients by identifying errors in their credit report and disputing inaccurate information with the appropriate organizations. Considering the present-day situation of inflation, credit repair services are needed more than ever by individuals as well as small businesses. The only problem associated with this business is the difficulty you will face in finding high-paying clients so it is highly recommended that you prepare a comprehensive business plan for your startup. The business plan will not only help you attract good clients, it will also establish the basis of your company’s future operations and decisions. If you are wondering how to write one, here we are providing you the business plan for a credit repair business startup named ‘CrediReps’.

Executive Summary

2.1 the business.

CrediReps will be a licensed and registered credit repair company aimed at solving all your credit-related problems. The company will be owned by Frit John, an experienced credit consultant, and its main office will be located in Downtown Manhattan.

2.2 Management

The success of a startup heavily depends on its staff and management that’s why John planned it before starting a credit repair business . The company’s management will comprise of sales executives, credit analysts, and business consultants .

2.3 Customers

We will provide credit repair consulting services to individuals, household, smaller organizations and also to the established organizations located in Manhattan.

2.4 Business Target

Our target is to balance the initial cost of the startup with earned profits and to achieve the net profit margin of $10k per month by the end of the first year.

Company Summary

3.1 company owner.

CrediReps will be owned by Frit John, a business graduate from the University of Illinois. John has more than ten years’ experience of working with various credit firms including FICO and Equifax.

3.2 Why the Business is being started

The business is being started with the purpose of making profits in this industry while also providing quality services to the clients.

3.3 How the Business will be started

In case you are thinking, how do I start a credit repair business , know that you can successfully start it only after proper planning. For his startup, John planned everything beforehand. The company will be started in a leased office. In addition to computer systems and usual office inventory, credit repair software (TrackStar) will also be procured. The startup summary is as follows:

The detailed startup requirements are given below:

Services for customers

Before starting credit repair business , make sure to pay special attention to what services will you offer to your clients because the planning of all subsequent stages depends on your services. CrediReps will improve the credit ratings of clients by identifying errors in their credit report and disputing inaccurate information with the appropriate organizations. Our main services include:

• Credit repair services
• Dispute processing services
• Credit reestablishment services
• Settlement assistance services
• Cease and desist collections processing services
• Other financial advisory services

Marketing Analysis of credit repair business

If you don’t know how to start a credit repair business , you can do your own research and can even take help from this credit repair business plan template or similar business plans available online. The most important component of an effective bank credit business plan is its accurate marketing analysis that’s why it is advisable to seek the help of marketing experts. If you are starting this venture on small scale, you can take help from this credit repair business plan sample and carry out a marketing analysis yourself. Marketing analysis is extremely important because it gives you an idea of your position in the market. Therefore, it must be duly considered before thinking about how to start credit repair business .

5.1 Market Trends

Rising unemployment rates and declining disposable income has led to increased debt problems for individuals which in turn has affected their reliance on credit repair services. Credit repair service help them in the management of their debts, identification of errors in their credit reports and also in disputing their inaccurate credit information with credit agencies. Considering the importance of the work they do for the consumers, the number of business providing credit repair services is on the rise, especially in the developed countries. There are more than 123,000 registered credit repair companies in the United States which are responsible for employing more than 135,000 people and for generating more than $6 billion in revenue every year.

5.2 Marketing Segmentation

It is very important to analyze the market segmentation of the future customers of your services before developing a credit repair company business plan because a successful and efficient marketing strategy can only be developed after we completely know our potential customers. Our target market is the residential community as well as the corporate sector located in Manhattan. Our experts have identified the following type of target audience which can become our future consumers:

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Corporate Sector:

The biggest consumer of our services will be the corporate sector located in the Downtown Manhattan ranging from small startups to established companies. This group includes product manufacturers and distributors, real estate owners, hotels, restaurants and food companies, IT and software development firms, branding and advertising agencies. These businesses will frequently need our services to address any issue that arise in their credit report otherwise they will face many problems like getting higher interest rates by creditors, lenders and insurance companies.

5.2.2 Institutions & Organizations:

Our second target group comprises of various institutions and organizations located in Manhattan. These organizations also need to have an up-to-date and correct credit report so as to enjoy various credit services.

5.2.3 Individuals:

Our third target group consists of individuals including both the employed and unemployed ones. They also need to have good credit status otherwise they will face a lot of difficulties in getting mortgages, loans and even insurance. The unemployed individuals will even face problems in securing a job or starting a business if they have bad credit status. That’s why they will need our services to repair their credit report as soon as a problem arises in it. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

• To achieve the net profit margin of $10k/month by first year, $15k by second year, and $25k by third year
• To balance the initial cost of the startup with earned profits by the end of the first year

5.4 Product Pricing

Product pricing is one of the most important factors in deciding the strategy for any business. After considering the market demands, we have priced all our products in the similar ranges as of our competitors.

Like marketing analysis, sales strategy is also an important component of an effective business plan so it must be given proper attention before you think about how to start your own credit repair business .

6.1 Competitive Analysis

As mentioned earlier, there are more than 123,000 registered credit repair companies in the United States, so we can say that we have a tough competition ahead. In addition to that, several other financial consulting related service providers also provide credit repair services to their customers, thus making this field even more competitive. Although we have a lot of competitors, we hope to surpass all of them by providing quality services and unparalleled customer experience.

6.2 Sales Strategy

• We will ensure at least a 10% increase in traffic each month on our official website and will ensure at least a 50% conversion rate
• We will carry out a large-scale advertising campaign on social media.
• We will offer a 20% discount on our services for the first three months of our launch.

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, personnel plan.

Personnel plan gives an estimate about the staff you require along with their salaries so make sure to develop it before you start up credit repair business . John has developed the following personnel plan for his company.

7.1 Company Staff

John will act as the General Manager of the company and will initially hire following people:

• 1 Accountant to maintain financial and other records
• 2 Sales Executives responsible to market and discover new ventures
• 4 Credit Analysts to analyze the credit reports of clients
• 2 Credit Consultant to provide consultation
• 2 Customer Representatives to interact with customers
• 1 Front Desk Officer to act as a receptionist

7.2 Average Salary of Employees

Financial plan, 8.1 important assumptions, 8.2 brake-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

Download Credit Repair Business Plan Sample in pdf

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Credit Repair Business Plan Template & Guidebook

For business owners looking to make their mark in the credit repair industry, having a comprehensive business plan can be crucial for success. With the #1 Credit Repair Business Plan Template & Guidebook, you can create a powerful plan that will take your business to the next level. From refining your ideas, understanding the local market, and implementing a successful marketing strategy, this guidebook has everything you need to streamline the process of starting and running a successful credit repair business.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Credit Repair Business [11 Steps]
• 25 Catchy Credit Repair Business Names:
• List of the Best Marketing Ideas For Your Credit Repair Service:

How to Write a Credit Repair Business Plan in 7 Steps:

1. describe the purpose of your credit repair business..

The first step to writing your business plan is to describe the purpose of your credit repair business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a credit repair business:

Our purpose is to create financial wellness through credit repair by empowering clients with the knowledge and tools necessary to improve their credit history and financial futures.

2. Products & Services Offered by Your Credit Repair Business.

The next step is to outline your products and services for your credit repair business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your credit repair business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your credit repair business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your credit repair business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a credit repair business?

Equipment and Supplies :

• Computer with internet connection
• Credit Restoration software
• Printer/copier
• Phone line and/or VoIP service
• Business stationery, such as business cards and letterhead
• Filing cabinets or other filing systems for organizing paperwork
• Business license from the city or county in which you plan to operate your business.
• Bonds to guarantee that clients' money is held safely.
• Insurance to protect your business from any potential lawsuits.

5. Management & Organization of Your Credit Repair Business.

The second part of your credit repair business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your credit repair business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Credit Repair Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a credit repair business varies based on many different variables, but below are a few different types of startup costs for a credit repair business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your credit repair business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your credit repair business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your credit repair business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Credit Repair Business Plans:

Why do you need a business plan for a credit repair business.

A business plan is a critical document for any business, including a credit repair business. It outlines the goals and objectives of the business, as well as the strategies, tactics and financial resources needed to achieve them. It also serves as a roadmap for setting and measuring performance and success, as well as communicating with potential financiers and investors. Additionally, having a solid business plan will help you stay organized and focused on achieving your goals.

Who should you ask for help with your credit repair business plan?

You should ask a business consultant or a financial advisor for help with your credit repair business plan. They can provide invaluable guidance in creating a plan that will give you the best chance of success. They will also be able to provide advice on legal and regulatory requirements as well as any industry research that may be necessary.

Can you write a credit repair business plan yourself?

Yes, you can write a credit repair business plan yourself. Writing a business plan requires some research and planning, but it can be an effective tool for giving structure to your business and outlining a strategy for success. Some key elements that should be included in your credit repair business plan are: • An executive summary outlining the purpose of your business • Market analysis of the credit repair industry • A description of services and how they will be provided • Detailed financial projections • Operational plans and strategies • Your marketing plans • Your vision and mission statements.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

How to Start a Credit Repair Business

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Weak credit seems to follow someone wherever they go. 

That new car, home, or business can feel like it’s a hundred miles away when they know their credit score isn’t up to snuff.

Past mistakes shouldn’t hold someone back from their future, and with a credit repair business, they can finally dig themselves out of their credit score slump and elevate their financial portfolio so they can show their worthiness to embark on worthy financial adventures.

If you have a passion for helping people get back on their feet so they can invest in what they love, starting a credit repair business might just be your next business move. Let’s help you start your thriving venture.

What Is a Credit Repair Business?

A credit repair business builds back credit. A person’s credit score can be low for all sorts of reasons— identity theft, the wrong address, the wrong name— and a credit repair specialist helps build back that credit by contacting a credit bureau and correcting those derogatory marks.

If you’re wondering what the difference is between credit repair and credit counseling, credit counseling is financial advice to help a person build back their credit, but not manually make it happen. Credit repair companies go deep in the weeds, getting to know all the details that make up your credit score and cleaning it up so it’s squeaky clean for the future.

9 Steps to Starting a Credit Repair Business

One bad mistake in the past shouldn’t hold people back from planning their future. But unfortunately, the nature of credit has that effect on people if they don’t get help from a capable and skilled credit repair company. Be that business for those struggling, so they can achieve their life’s biggest financial milestones!

1. Know Your “Why”

Before anything, know why you want to start your credit repair business. Did you ever struggle with bad credit, and change your life when it got back on track? Do you know people struggling to buy a house because their credit is low?

Any small business will face roadblocks, struggles, and times you just want to close your computer and call it quits. But knowing your “why” will give you an innate reason to keep going. Whatever it may be, find it for yourself, and let it drive you through even the roughest points in your business.

2. Complete All Your Credit Repair Business Requirements

Let’s just come out and say it: credit repair companies have a bad rap. There are lots of scammers out there who pretend to be credit repair businesses, running off with people’s money as soon as they have it in their hands. The FTC received 3,151 reports of credit repair fraud in 2021.

Because of all these fraudulent companies, federal and local governments have instilled laws to protect people from credit repair fraud and promote real companies.

License: Many states require a license to have a credit repair business, while some states make it completely illegal to have a credit repair company at all. Take a look at this handy map from Credit Repair Cloud to see what your state’s law may be (but remember, laws are always changing, so do your due diligence and research for the most up-to-date info).

Credit Repair Organizations Act (CROA) : This law works to prevent credit repair companies from acting unethically, like providing misleading information, which is something that happens with illegitimate companies.

Fair Credit Reporting Act (FCRA) : This is the notion that anyone should have access to their credit report.

Surety Bond : This is something that credit repair companies should create for themselves to further show the legitimacy of their work, and just another step that credit repair businesses like yours can take to ensure you’re showing your legitimacy amongst the many fraudulent companies out there.

3. Identify Your Target Market

Think back to your why and you just might uncover your target market. 

Find out through research who in your area or online you see is struggling with poor credit. Is it the people who need a better understanding of financial literacy to secure a home one day? Or people who want to become small business owners but can’t secure a business loan due to financial mistakes made in college?

Knowing a focused, specific target market won’t necessarily limit you from getting other businesses; rather, it’ll help you zero in on where you can market your services and how to find clients who may be desperate for your service.

4. Write Out Your Business Plan and Work With a Strategy

Create a business plan to focus you on your short- and long-term goals. Business plans aren’t a one-size-fits-all approach; they can be written however you’d like. But some key aspects of a business plan for your credit repair agency:

Supply and Demand: Outline the research you performed when finding your target market. What is this community struggling with, and how can you solve their problem?

Marketing Strategies: Plan how you’ll find customers and market your business. It’ll be particularly helpful to capitalize on your business’s trustworthiness and legitimacy, especially since there are so many fraudulent credit repair businesses.

Projected Costs and Pricing Structure: Lay out how you’ll charge for services. Will you bill monthly for the amount of time it takes you to rebuild credit, per derogatory mark that you’ve removed, or decide on a flat fee to charge every customer? Describe why this is your chosen strategy and how it’ll help you scale.

5. Decide on the Type of Business Entity

While we’re talking financials, let’s get the other logistics checked off. If you haven’t already, establish a business entity for your credit repair business to legitimize your company. There are a few business entity types you can choose from:

Sole Proprietorship or General Partnership: An informal business structure that doesn’t protect a business owner from the business in case of legal allegations. Sole props have only 1 member (founder), while general partnerships have more than 1.

Limited Liability Company or Limited Liability Partnership (LLC or LLP): A formal business structure that protects a business owner from the business. Can be for a single-member LLC or an LLP.

S Corporation (S-corp): A formal business that separates a business owner’s liabilities from their business and has less than 100 stakeholders.

6. Open a Business Bank Account

Now that you’ve established your official credit repair business type, it’s time to open a business bank account . Think about the time it’ll take you to fish through all the profits you received amongst your clothing returns, grocery store runs, and rent payments. How much better will it be when you’re able to complete all your business-related expenses in one place?

(Plus, if you’re improving others’ financial visibility, wouldn’t you want to do the same? )

7. Choose a Credit Repair Software

The right software helps you help your clients. Take a look at some of these top credit repair tools to help you deliver better results for your customers:

Dispute Bee : They help you easily import credit reports, automatically write up dispute letters, and wait for responses, all tracked in Dispute Bee.

Credit Repair Cloud : They help budding credit repair business owners like you jumpstart your business through credit software and a business challenge when you join.

Credit Detailer : They are a one-time payment software for credit repair business owners that works in both English and Spanish.

8. Find a Simple CRM and Project Management Tool to Manage Clients

Once you’ve received some clients, make sure you keep track of them, especially as you start referral techniques to get more inbound leads! Use project management software like AirTable or Notion to track client information like emails and birthdays to stay connected, and CRM systems like Hubspot, Dubsado, or HoneyBook to communicate with and manage current clients.

9. Market Your Credit Repair Services

Through your project management and CRM tools, you’ll eventually create a list of customers who you can help, creating automation to instill referral programs to help you get more business! A referral program is a great way to get more clients, particularly for a high-risk business like credit repair where friends telling friends can be the difference between your market seeing your business as fraudulent or friendly. Marketing is an ongoing effort, but the earlier you start it, the earlier you can tweak and change your strategy so it works for you:

Build Brand Awareness Through Facebook Groups: Find local businesses, entrepreneurs, and finance lovers who might be asking for your service. Be careful not to tout your business too much, especially because groups tend to have rules on self-promotion.

Instill a Referral Program : Build trust within your community. As mentioned above, friends telling friends about your work will make it easy for you to build trust with your target market! You can do this through affiliate programs and cash incentives to help bring more positive talk around your service!

Start Your Credit Repair Business with a Trusted Partner

With all the excitement of starting your own business also comes equal part confusion and information overload. “Where do I start?” “Who can answer my questions?” are only a few of the questions rummaging through your mind when building your business. Starting your business doesn’t have to be the hardest part anymore. With a partner like doola, we’ll help you form your business so you can grow it with ease and make a difference in your community, helping clients get out of their biggest credit score woes.

Is credit repair a profitable business?

According to ZipRecruiter , the average annual salary of a credit repair specialist is $46,040 a year. But just like any other business, that can be higher or lower depending on the way you run and structure your business.

Do you need a license to do credit repair in California?

Yes, if you have a credit repair business in California, you have to obtain a Certificate of Registration from the Department of Justice. Visit the A OAG website for application instructions.

Is credit repair a high-risk business?

Due to the amount of scam credit repair companies out there, credit repair businesses are considered high-risk, meaning they’ll need a merchant or bank account that accepts high-risk businesses.

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Business Credit Reports: What They Are, How to Check Yours

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A business credit report is a document that summarizes how well your company deals with debt. It includes your business credit score and information about your payment trends and account histories.

There are three major business credit bureaus, each with their own business credit reports. You aren’t entitled to view your business credit report for free, the way you are with your personal credit report. But all information from your business credit reports is public for customers who pay for it — including both your company and others.

Here’s what you need to know about business credit reports.

» MORE: How to get and build business credit

Ink Business Cash® Credit Card

What is a business credit report?

A business credit report is a summary of your company’s history of borrowing money and paying it back, plus information in the public record.

It includes details such as:

Your business registration.

Your industry classification.

How many credit lines you have, how much credit you’re using and how much you have available.

Past payment history, including any bills that have gone to collections.

Liens, judgments and UCC filings.

Business credit bureaus crunch this data to create your business credit score, which is meant to sum up your business’s creditworthiness for potential lenders, business partners and other interested parties.

How are business credit reports used?

Business credit reports are used to assess the riskiness of your business. This can impact you in a number of ways:

Small-business lenders will weigh your business credit score and credit report as part of a business loan application. It helps determine how much money they’ll lend you and what rates and terms they’ll offer. 

Other companies, such as suppliers, might check your business credit report before deciding whether to extend a tradeline or another form of credit.

You can check the credit reports of other companies you’re thinking of doing business with to get a sense of any risks they might present.

In general, you can get a business credit card based on your personal credit, which makes it a good option for newer businesses to access financing. Even though business card decisions don’t depend on your business credit, using one and paying it off on time can help build your business credit.

Where do you get your business credit report?

You’ll typically have to go directly to the credit bureau to get your business credit report. The three main business credit bureaus are Experian, Equifax and Dun & Bradstreet. They each have their own credit reports, and Experian and Dun & Bradstreet offer credit monitoring services.

Here’s what you can expect from each company.

Experian business credit reports

Your Experian business credit report should include basic information about your business, like its owners, parent companies and subsidiaries. It also notes any collections, liens, judgments, bankruptcies or UCC filings that your business has faced in the past.

Experian’s CreditScore Report costs $39.95. For that price, you'll get a one-time view of your credit report with a summary of credit and financial information. You’ll also get Experian’s Intelliscore — its business credit score — and a Financial Stability Risk Score, which indicates how risky your business may look to lenders.

For an additional $10 — a total price of $49.95 — you can get information about specific payment history or UCC filings, too.

Experian’s credit report and monitoring service, Business Credit Advantage, costs $189 per year.

Equifax business credit reports

Like Experian, your Equifax business credit report contains information that’s in the public record about your company, like your business registration, and any judgements, liens or bankruptcies. It also includes an outline of your credit accounts with suppliers and financial institutions — plus an analysis of how your business is trending in terms of on-time payments and how it compares to industry averages.

You’ll have to reach out to Equifax’s sales team to request a copy of your business credit report — although getting your own company’s report is free.

Equifax does not currently offer small-business credit monitoring.

Dun & Bradstreet business credit reports

Dun & Bradstreet differs slightly from Experian and Equifax. First, to get a credit report from Dun & Bradstreet, you’ll need to register for a DUNS number , which is a unique identifier only used by that credit bureau. Experian and Equifax generate business credit reports more or less automatically based on what lenders report to them; you don’t need to register your business with those bureaus.

Second, Dun & Bradstreet’s credit report includes a PAYDEX score — its business credit score — plus three other scores designed to rate a company’s viability and likelihood of business failure or delinquency.

And third, Dun & Bradstreet credit reports include lawsuits, which don’t always show up alongside judgements and liens.

Dun & Bradstreet offers multiple credit monitoring services:

CreditSignal, which is free. Initially, this service offers access to your Dun & Bradstreet credit scores and ratings. But you can see those scores for just 14 days. After that, you’ll only be able to see whether your ratings went up or down.

CreditMonitor, which costs $39 per month. This service lets you view your credit file as often as you want to, plus get notifications when other businesses request information about yours.

Are there free business credit reports?

You aren't entitled to view copies of your business credit report for free the way you are with your personal credit report.

But there are a few ways to get a free peek at your business credit reports. For instance, Dun & Bradstreet’s CreditSignal service lets you view a summary of your credit report for free — but then you only get updates about whether your credit score has moved up or down. You can also access your own company’s Equifax business credit report for free.

It’s wise to check your business credit report every once in a while so you can make sure it’s accurate — especially before you apply for a business loan . But credit monitoring services likely aren’t necessary for most small businesses unless you have a specific concern.

You may also have access to some of your business credit scores through your business bank or another third party you work with. For instance, Bank of America business checking customers can view their Dun & Bradstreet Delinquency Predictor and Small Business FInancial Exchange scores for free through the Business Advantage 360 online banking platform.

On a similar note...

8 Ways to Clean up Your Business Credit Report

Michael Lockwood

2 min. read

Updated October 25, 2023

A complete and accurate business credit report is like a gourmet meal to a loan underwriter.  Your business credit report is important for your company getting a business loan, because it tends to verify the information provided in your credit application and business plan.  Much like a personal credit report, unless it is managed, the business credit report is often inaccurate, incomplete, and presents your company in a poorer light than it should.

If you want to maximize your chances of getting your business approved for a business loan or equipment lease, ensure that your business credit report is accurate and complete, and do it very early in the process.  In fact, why don’t you do it now?

• How do business credit reports work?

Business credit reports are sold to the credit underwriters employed by lenders and equipment lessors.  Dun & Bradstreet is the largest supplier of business credit reports, but it is by no means the only one. The data that goes into the business credit report comes from a lot of different public and non-public sources:  lenders pool business credit information on a voluntary basis and public information is obtained and synthesized from sources like the Secretary of State or the Division of Corporations. 

But don’t trust that the information is accurate. Take the responsibility to verify the report and then add as much information as possible.

• How to clean up your business credit report

The first step, of course, is to get a copy of your business credit report.  No need to pay for it; you can get one for free from any provider and you can modify the information (within limits) either online or over the phone.  We recommend doing it online.  Once you have the business credit report, verify it or correct it, following these tips:

• Make sure the business credit report accurately shows the business name, and any trade styles (DBA’s).
• Verify the physical business address, and include your website address.
• Look at the payments score in detail.  Is it accurate?  Does it accurately show payment promptness?  If not, you can challenge an entry that shows the payment was paid later than it actually was, but you’ll have to be able to prove it.
• Is ownership of the business accurately explained, and does the report properly show the business entity type (partnership, LLC, corporation), and time in business?
• The business credit report allows you to add the name of the officers of the company, the title and business function, and some work experience.
• It also provides for entry of the history of the company and any recent company events, such as a move to a new location, a change in ownership, etc.
• You can decide whether to add financial information about the company, but remember that you will be making sometimes sensitive information available to everyone if you do so.
• The business credit report will show liens, lawsuits, and loans.  Make sure this information is accurate.

Managing your business credit report is a good practice.  Schedule a follow-up in a year to revisit the report and check any changes or to add new information.

Create a business plan that maximizes your chances of securing funding

Mike Lockwood is President of TEQlease Capital , a nationwide provider of equipment lease financing solutions. He is also Managing Partner and founder of TEQlease Capital Partners , a Los Angeles, California-based equipment lease finance investment firm.

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How to Clean Up Your Business Credit Report

Your business credit report is important for your company getting a business loan, because it verifies the information provided in your credit application and business plan. Much like a personal credit report , unless it is managed, the business credit report is often inaccurate, incomplete, and presents your company in a poorer light than it should. Ensure that your business credit report is accurate and complete and do it very early in the process if you want to maximize your chances of getting your business approved for a business loan or equipment lease .

Business credit reports are sold to the credit underwriters employed by lenders and equipment lessors. Dun & Bradstreet is the largest supplier of business credit reports. The data that goes into the business credit report comes from a lot of different public and non-public sources. Do not trust that the information is always accurate because it is not. Take responsibility and verify the report and add as much information as possible.

Steps to Take to Clean Up Your Report

The first step is to get a copy of your business credit report . You do not need to pay for one, you can get it for free from any provider and you can modify the information either online or over the phone. We recommend doing it online. Once you have the business credit report, verify it or correct it.

The following tips will help you out:

• Make sure the business credit report accurately shows the business name, and any trade styles (DBA’s).
• Verify the physical business address and include your website address.
• Look at the payments score in detail and that it is accurate. If it does not accurately sow payment promptness you can challenge an entry, but you will have to be able to prove it.
• Is ownership of the business explained accurately, the report properly shows the business entity type and time in business.
• The business credit report allows you to add the name of the officers of the company, the title and business function, and some work experience.
• It also provides for entry of the history of the company and any recent company events, such as a move to a new location, a change in ownership, etc.
• You can decide whether to add financial information about the company but remember that you will be making sometimes sensitive information available to everyone if you do so.
• The business credit report will show liens, lawsuits, and loans. Make sure this information is accurate.
• Review your business SIC/NAICS code . You want your code to be accurate or else it will not be properly evaluated if your business is not categorized correctly.
• Check public record information. If your credit report lists items such as UCC filings , tax liens or even judgments, you want to check to make sure that information is accurate and complete. If any public record information is wrong, you can dispute it with the credit reporting agency.

The Bottom Line

Managing your business credit report is good practice. Be sure to schedule a follow-up in a year to revisit the report and check any changes or to add new information. It is never too late to work on cleaning up your business credit score . The more effort you put into improving business credit, the bigger your potential return when it comes to your bottom line.

About Author: Mariela Merino

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Money blog: Traitors winner Harry Clark reveals what he's spent his £95,000 prize on so far

The police are "not interested" in handling shoplifting, the chair of M&S has said. And a new trend is hitting Michelin starred restaurants: "fast food". Read this and more in the Money blog - and leave a comment or your money problem in the box below.

Tuesday 14 May 2024 14:21, UK

• Strong wage growth shrinks hope of interest rate cut
• The rise of Michelin starred 'fast food'
• Traitors winner reveals what he's spent his prize money on so far  
• Gen Z would rather deliver parcels than work in restaurants, Michel Roux Jr claims

Essential reads

• What is PIP - and what could government changes mean?
• How to make sure your car passes its MOT
• 'Loud budgeting': The money-saving trend that has nothing to do with giving up your daily coffee
• Money Problem: My workplace is bringing in new clock-in system to pay us by the minute - is this allowed?
• Best of the Money blog - an archive

Ask a question or make a comment

McDonald's has decided to remove the iconic smile from its Happy Meal box in a bid to teach children about their emotions. 

Instead, a sheet of stickers depicting different moods will be placed inside, which children can use to express their feelings. 

A QR code for a mental health hub will also be placed on the red packaging to provide its younger customers with different resources about emotional wellbeing. 

The move comes as part of Mental Health Week, with research by the fast food chain finding nearly half of children feel pressure to be happy all the time. 

Football legend Rio Ferdinand has teamed up with the company to support the campaign, which runs until 19 May. 

The father-of-five said: "It's our job to empower our children to express themselves freely and support them every step of the way in understanding that it's okay to not be happy all the time." 

The Traitors' winner Harry Clark has revealed he's only spent some of his prize money so far, and it's gone towards clearing his relatives' debts. 

The 23-year-old won £95,150 after successfully convincing his fellow contestants that he was a faithful in the second season of the show. 

Speaking on the TV BAFTAs red carpet, the former British Army engineer said his dad has stopped him from spending the cash and has been looking after him. 

"He's got his head screwed on. He's been making sure I can get my first place," he told reporters.

"I've just given my family some dosh, just to pay off their debts and stuff like that, so they don't have to worry anymore. 

"That's all I've wanted to do in my life." 

Police are no longer interested in dealing with shoplifting and retailers are being forced to spend "a lot of money" on protecting themselves, the chairman of M&S has claimed. 

Archie Norman said stores have resorted to installing new camera systems and employing store detectives to try to keep crime rates down. 

"We get very little help from the police," he told LBC's Nick Ferrari at Breakfast.

"I think we have to accept that the police are not interested in this sort of crime any more. Whether we like it or not, that's the way it has gone." 

Shoplifting is at the highest levels since records began in 2003, according to the Office for National Statistics. 

It has risen by 37% since last year.

Mr Norman said thefts had surged since the pandemic, and the rising cost of living crisis was also causing problems. 

"When people are hard up, or particularly when there's a growth in other forms of crime, particularly drugs-related crime, then one way of financing it is to go and steal from shops… it's understandable given what we've been through in the last couple of years, we've seen more of that," he added.

A change to the law in 2014 now means shoplifting goods worth less than £200 is only a summary offence. 

This may have prompted police to pay less attention to it, and it has been on the rise since.

Home Office data also show the number of shoplifting charges has fallen in recent years. 

Taking further action wasn't considered to be "in the public interest" in most cases. 

Sky News has contacted the Home Office for comment.

By James Sillars , business news reporter 

The prospects for a Bank of England interest rate cut are almost 50/50.

That's according to the latest financial market expectations in reaction to this morning's employment figures.

They showed the pace of wage growth remaining stubbornly high - overshooting the expectations of economists.

Strong wage growth is not what the Bank wants to see, as it fears a surge in consumer spending power driving a new wave of inflation.

There is a further set of wage data before the Bank's next rate-setting meeting on 20 June.

That may not help those seeking a cut in borrowing costs, however, as it will reflect the impact of April's big rise in the National Living Wage.

Away from the interest rate cut speculation, the FTSE 100 has opened flat for a second day.

Currys is among stocks doing well on the wider stock market.

The electricals retailer saw its shares trading almost 8% higher in early deals after it raised its annual profit outlook.

Those of Greggs, however, were down almost 1% despite a leap in sales.

The bakery to fast food chain said its performance was in line with expectations and, as such, it had no impact on its forecasts for the full year.

Wages grew by 6% in the three months to March, excluding bonuses, according to the Office for National Statistics.

This is slightly above economists' expectations - bad news for the Bank of England, which wants to see wage growth fall to help ease inflation as it weighs when to cut 16-year-high interest rates.

The Bank is watching wages closely as it looks to bring inflation back to its 2% target, and cooling earnings growth is seen as being key to paving the way for it to begin cutting rates.

In real terms - taking Consumer Prices Index inflation into account - pay rose 2.4% across the period.

In March alone, that figure was 3% - the highest level of growth since July 2021, when it hit 3.9%.

"Earnings growth in cash terms remains high, with the recent falls in the rate now levelling off while, with inflation falling, real pay growth remains at its highest level in well over two years," said ONS director of economic statistics Liz McKeown.

Meanwhile, unemployment ticked up to 4.3% from January to March, compared to 4.2% in the previous three months, December to February. 

The number of job vacancies remains about pre-pandemic levels, but has been declining for 22 consecutive months, said Ms McKeown.

"With unemployment also increasing, the number of unemployed people per vacancy has continued to rise, approaching levels seen before the onset of COVID-19."

By Jimmy Rice, Money editor

Michelin starred restaurants are supposed to be the antithesis of fast food, a place to enjoy ingredients that have been laboured on for days over several hours. 

But with hospitality struggling like never before due to staff shortages, inflation and changing consumer habits, it seems even those at the top end of the food chain are having to adapt. 

An increasing number of the country's most celebrated restaurants are now promising you a tasting menu in less than an hour. 

One-starred Pavyllon is located in the Four Seasons on Hyde Park, the kind of place you might have seen bustling with pinstriped business lunchers in another decade. But these days it's attracting customers with its "Lunch in 55" menu for £55.50 - four courses for half the price of its regular offering. 

Head chef Benjamin Ferra Y Castell says the industry is having to adapt. 

"Living costs have increased so, understandably, in general people will spend less," he tells the Money blog. "It's important to have a more affordable option at lunch." He says the amount of competition at this end of the market in London means you have to get creative. 

"It's noticeable that more restaurants across London are offering affordable lunch menus, including Michelin starred establishments and across Mayfair."

Castell says half the people now coming in for lunch are choosing the in-and-out option. 

"Four courses served in less than an hour fits in with busy schedules and offers convenience and versatility," he says. 

In the past couple of weeks, the flagship restaurant of Great British Menu winner Adam Handling launched its own speedy lunch. 

Frog by Adam Handling usually charges £195 for a full tasting menu but its new lunch offering has been priced at £100, with a mailing list promotion assuring people they can be out within an hour (though they can stay longer if they wish). 

"People aren't indulging at lunch like they used to and we just had to adapt," Handling told the Money blog. "We understand that things aren't going to go back to the way they were, at least not for a while. 

"Inflation has hit everyone hard and people don't have the luxury of spending time to sit and eat three to four-hour lunches." 

UKHospitality data shows 40% of Britain's restaurants are barely breaking even - but Handling is optimistic that better times are ahead. 

"We're not expecting it [cheaper, speedy lunches] to be a long-lasting trend," he says. "We won't be keeping it forever but, for now, we understand things are difficult at the moment and so, as we always do, we're adapting to our guests needs."

By Jake Levison , news reporter

Basically, PIP (personal independence payment) is a tax-free payment given to people to help with the extra costs caused by long-term ill-health or disability.

There are two parts to it:

• A daily living part - for those who have a long-term physical or mental health condition or disability
• A mobility part - for people who have difficulty doing certain everyday tasks or getting around

It's possible to meet the criteria for one part or both parts, and payments vary for each.

Who is eligible?

People aged 16 to 64 can get PIP regardless of whether they work if they expect their difficulties to last for at least 12 months from when they started.

Anyone told they may have 12 months or less to live can also apply and may get PIP more quickly.

Those with both physical disability and cognitive or mental health conditions like anxiety can meet the criteria for both types of PIP.

There is no list of medical conditions that qualify you for PIP. Instead, you're assessed on the level of help you need with specific activities.

For the daily living part, you might need help with things like:

• Preparing food
• Eating and drinking
• Managing your medicines or treatments
• Washing and bathing
• Using the toilet
• Dressing and undressing
• Socialising and being around other people
• Talking, listening and understanding.

For the mobility payments, it's things like:

• Working out a route and following it
• Physically moving around
• Leaving your home

How does the government make its decisions?

The Department for Work and Pensions carries out an assessment to work out the level of help a person should receive.

A person's needs are judged through a points system, wherein the more severe the impact in a particular area and the more help required, the more points a person gets and the more money they receive.

The answers are assessed by health professionals, who then provide a report for DWP case managers with recommendations on what to give the applicant, if anything.

Applicants can provide assessors with additional medical evidence as part of a claim, but it's not a requirement, as a person's self-assessment about the impact their condition is prioritised when making a decision.

What does the government want to change?

It is looking at changing PIP in a number of ways, potentially affecting those who are eligible for it and the type of help those who are granted it will get. Below we summarise the key points in the consultation:

Different assessment model

The government is looking at introducing an assessment model based entirely or partly on the diagnosis given to an individual.

It says it is considering whether "evidence of a clinical diagnosis made by a healthcare professional could provide a more objective assessment of need" than a self-assessment.

Eligibility reform

This is an alternative to changing the assessment model.

The government says it may keep the current assessment, but change the questions so that they are less repetitive and to "ensure they are working as intended".

The government is also considering looking at changing the length someone needs to have been suffering for due to their disability before they become eligible for PIP, because "we know many people who have short-term illnesses can make a full recovery".

It has not specified the length of time this would change to. As it stands, people have to show that the negative effects of their condition have been present for three months before applying and that they are likely to last for another nine months after PIP is first given to them.

Changes to payments

In the current system, PIP claimants are given monthly cash payments which they can use as they see fit, whether that be things like aids and mobility devices, covering increased energy costs due to special equipment or paying higher premiums due to their condition.

The government says claimants often use the money for common household costs or some "view their PIP award as compensation for being disabled rather than as an award for extra costs".

With this in mind, the government is considering the following alternatives to cash transfer:

• Catalogue/shop scheme - where there would be an approved list of items from which disabled people could choose items at reduced or no cost
• Voucher scheme - where disabled people could receive vouchers to contribute towards specific costs
• Receipt-based system - where claimants buy approved aid, appliances or services for themselves and then provide proof of purchase to claim a contribution from the government
• One-off grants - a contribution to specific, significant costs such as for home adaptations or expensive equipment.

Why does the government say it wants to change PIP?

It says PIP caseloads and costs are "spiralling" as there are now 2.6 million people of working age claiming it.

There are 33,000 new awards for PIP each month, which it says is more than double the rate before the pandemic.

In its proposal, the government adds: "This is expected to cost the taxpayer £28bn a year by 2028/29 - a 110% increase in spending since 2019.

"This is in part fuelled by the rise in people receiving PIP for mental-health conditions such as mixed anxiety and depressive disorders, with monthly awards doubling from 2,200 to 5,300 a month since 2019."

It says its main three priorities through making changes are:

• Providing the right support to the people who need it most
• Targeting our resources most effectively
• Supporting disabled people and those with long-term health conditions to live independently and reach their full potential.

Announcing the consultation on 29 April, Mel Stride, the work and pensions secretary, told the Commons: "This government's priority is to make sure that our welfare system is fair and compassionate. Fair on the taxpayer, by ensuring that people of working age who can work, do work, and fair on those who are in most need of the state's help."

What do critics say?

Some believe the proposed changes are going to target people with mental health problems and stop them getting PIP, and they have not been encouraged by the fact the government has not specified which conditions would be eligible for PIP under reforms.

Mr Stride suggested to the Times that people with "milder mental health conditions" would no longer receive financial support, adding talking therapies, social care packages and respite care could be used as alternatives.

James Taylor, the executive director of strategy at disability equality charity Scope, called for an end to the "reckless assault" on disabled people and to fix the "real underlying issues".

"It's hard to have any faith that this consultation is about anything other than cutting the benefits bill, no matter the impact," Mr Taylor said.

The Disability Benefits Consortium (DBC) branded the consultation "cynical and cruel".

Speaking on behalf of DBC, Ceri Smith head of policy at the MS Society, said: "If the government truly wants a 'stronger, healthier and fairer society', they should start by addressing NHS waiting lists and fixing social care. Instead, this approach will punish disabled people and push even more into poverty."

How can you have your say?

You can view the consultation, which is open until 23 July,  here .

Once you have read it, you can respond online  via the government's form  or by emailing [email protected]

Read other entries in our Basically... series:

Young homebuyers are being forced to gamble with their retirement prospects by taking on ultra-long mortgages, according to a former pensions minister.

Sir Steve Webb described data - supplied by the Financial Conduct Authority to the Bank of England - as "shocking".

It suggests that more than one million new mortgages have been issued over the past three years with end dates beyond the state pension age.

The ex-Liberal Democrat MP, who is now a partner at the consultancy firm LCP, voiced fears that borrowers could be forced to raid their pension savings to clear their mortgage in a worst-case scenario.

Sir Steve saw the potential for harm in any case, as longer-term mortgages deprive people of a period running up to retirement when they could be mortgage-free and boosting their pension.

What does the data say? 

• 42% of new mortgages in the fourth quarter of 2023 - or 91,394 - had terms going beyond the state pension age;
• In the final quarter of last year, people aged 30 to 39 accounted for 30,943 new mortgages lasting beyond state pension age;
• People aged 40 to 49 accounted for 32,305;
• Under-30s made up 3,676 of these mortgages;
• People aged 50 to 59 accounted for 18,854, and there were 661 who were over 70.

Mortgage rates have been rising since the end of 2021 when the Bank of England began action to tackle rising inflation.

Taking home loans with longer maturity dates tends to be more attractive when interest rates are high, as monthly repayments are lower.

You can read more on this story below...

Waitrose has become the only supermarket to receive a royal warrant from the King. 

The recognition means the company has regularly provided the royal household with products for at least five years. 

It also means it can use the King's coat of arms on packaging, as part of advertising or on any stationary it creates. 

Waitrose was first granted a royal warrant in 1928 for supplying King George V with groceries and cleaning materials.

"We are honoured and proud that His Majesty has granted us his warrant," James Bailey, executive director of Waitrose, said. 

"It means the world to all of us, and our farmers and suppliers. There couldn’t be a more powerful symbol of our commitment to service and quality, and our determination to have the highest environmental and animal welfare standards." 

Waitrose was previously granted a royal warrant by the late Queen in 2002 and the King when he was Prince of Wales in 2010.

The Queen has also granted her first royal warrants, picking seven companies, including luxury department store Fortnum & Mason and the florist that supplied her coronation flowers, Shane Connolly & Company. 

The royal nod could be bad news for customers, however, with a brand finance expert telling Sky News that having a royal warrant allows firms to charge a price premium.

David Haigh said his company's research estimated this to be "between 10% and 25%".

A royal warrant says a company or a product is luxurious, high quality and sustainable, he explained. 

He estimates the scheme is "worth billions to UK companies and… therefore it's a very high value to the UK economy".

"And one of the reasons for that is that a lot of foreign tourists and buyers have a preference for royal warrant holder products. We found that 100% of Chinese buyers would pay in excess of 10% for a royal warrant holder product."

Read more on the Queen's choices here :

Gordon Ramsay's restaurants tripled losses to £3.4m last year, as the chef warned businesses in the industry were facing a "challenging" climate. 

The chef's group spent millions opening five new restaurants in 2023, including a Lucky Cat in Manchester, a Bread Street Kitchen in Battersea Power Station and a Street Pizza in Edinburgh. 

Sales at his wide-ranging establishments rose, however, by 21% to £95.6m in the year to August, according to The Telegraph. 

"It's been a really hard-fought year, but at the same time an exciting year, and in tough times it amazes me how strong and vibrant our industry is," Ramsay told the news outlet. 

"It's challenging out there and businesses are battling to stay afloat, rising costs, rent and food costs, multiple strikes. It's a battle" 

He was optimistic, however, saying there hasn't been "so much passion and vibrancy" in the industry since he opened his first restaurant in 1998.

"We've still got something wonderful to celebrate, and I truly believe the industry has never been so exciting."

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• Best for large loan amounts
• Best for good credit
• Best for lower credit scores
• Best for credit card consolidation
• Best for small loan amounts
• Online Loans FAQs
• Why You Should Trust Us

Best Online Loans of May 2024

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate personal loans to write unbiased product reviews.

An online loan works like this: You apply to borrow a certain amount of money. The lender will show which offers you qualify for based on factors such as your credit score, debt-to-income ratio, and ability to repay the loan. The best online personal loans will offer a variety of term lengths and low interest rates.

Some lenders have minimum credit score requirements that might make you ineligible for one of their loans. Others may allow you to get a loan with a poor credit score, but could saddle you with high interest rates as a result. If you're going to borrow money with an online loan, make sure you understand how much it will cost you each month, and that you have a plan to pay it back.

The Best Online Loans: Convenience and Smart Solutions

Advantages of online lending.

Online lenders can stand out from their brick-and-mortar counterparts by providing convenience and competitive rates. The qualification and application process is typically very streamlined, allowing you to apply and get your loan funded entirely online.  Many online lenders also offer very quick turnaround times, with some able to get you your money either the same day or the day after it's approved.

Types of Loans Available Online

In addition to personal loans, many online lenders offer a range of other types of loans. These include student loans , business loans, and auto loans.

You can also find home loans like mortgages and home equity lines of credit online through providers such as Rocket Mortgage and Ally .   

Best Online Personal Loans

If you want to use an online loan provider for a personal loan, here are a few of the best places to start your search.

Best for large loan amounts: LightStream Personal Loan

Best for good credit: sofi personal loan, best for lower credit scores: avant personal loan, best for credit card consolidation: payoff loan™, best for small loan amounts: upstart personal loan, best online personal loan company reviews.

The best online personal loans offer the convenience of signing up from home, plus quick access to funds. We chose the best online loans by looking at lenders' trustworthiness across sites like the Better Business Bureau, and by focusing on the following features: loan term options, loan amounts offered, interest rates, and minimum credit score.

0.50% discount on regular rates with AutoPay

6.99% to 25.49% (with AutoPay discount, rates vary by loan purpose)

$5,000 to $100,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APR
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Approval decisions should come shortly after applying
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Loans can be funded the same day
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Wide range of borrowing amounts and terms
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No fees
• con icon Two crossed lines that form an 'X'. Only available to people with good credit
• con icon Two crossed lines that form an 'X'. No pre-approval option

LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.

• Loan amounts range from $5,000 to $100,000
• Loan term lengths range from 2 to 12 years
• Apply online and you'll receive a response shortly during business hours.
• Receive your funds as soon as the same day
• Loans are made by Truist Bank, member FDIC

LightStream's online loans are best for those with good credit. While you can qualify for a loan with a minimum score of 660, you won't be able to take advantage of LightStream's lower rates without a score of around 800. The lender also has slightly more stringent eligibility requirements than some of our other top picks, including several years of credit history, stable income, and few or no payment delinquencies on your credit report.

If you're looking to borrow a large sum of money, LightStream's maximum loan amount of $100,000 is significantly higher than most of the other lenders on our list. Its minimum APR is one of the lower on our list of top picks, reducing the overall cost of your loan.

LightStream Personal Loan Review

0.25% AutoPay interest rate discount and a 0.25% direct deposit interest rate discount

8.99% - 29.49% fixed (with all discounts)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High maximum loan limit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Unemployment protection
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No fees required
• con icon Two crossed lines that form an 'X'. High minimum credit score requirement
• con icon Two crossed lines that form an 'X'. High minimum loan amount
• con icon Two crossed lines that form an 'X'. No in-person support

SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like unemployment protection and no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.

• Loan term lengths range from 2 to 7 years
• Usually receive your money in a few business days after your application is approved
• Unemployment protection if you lose your job during your loan repayment, allowing you to apply for a three-month forbearance, up to a total of 12 months
• Loans are made by SoFi Lending Corp.

SoFi has the highest minimum credit score requirement of any lender on our list. You'll need at least a credit score of 680 to get one of its personal loans online. But if you do qualify, you may like the lender's low rates, high range in loan amounts, and unique perks.

Even if your credit history isn't immaculate and you aren't eligible for SoFi's lowest rate, the company's maximum APR is the lowest on our list. SoFi offers a higher maximum online loan amount than most other lenders, allowing you to take out up to $100,000.

Additionally, the company has no origination fees required and has no late payment penalty, lowering the overall cost of your loan. If you lose your job through no fault of your own, SoFi also has an unemployment protection program. If approved for the program, SoFi will put your loans into forbearance, suspending your monthly payments. It's worth noting that interest will continue to accrue on your loan when it is in forbearance. 

SoFi Personal Loan Review

Offers emergency, home improvement, and debt consolidation loans

9.95% to 35.99%

$2,000 to $35,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Funds generally deposited by the next business day
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No prepayment penalty
• con icon Two crossed lines that form an 'X'. Multiple types of fees
• con icon Two crossed lines that form an 'X'. High maximum APR
• con icon Two crossed lines that form an 'X'. Low maximum loan limit

Avant Personal Loan is a good personal loan provider, especially if you have a lower credit score and need to receive your loan money quickly. Just be prepared to pay a high APR if you do have a low score.

• Loan amounts range from $2,000 to $35,000
• Loan term lengths range between 2 to 5 years
• Administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded, and late fee that varies by state
• Loans made by WebBank, member FDIC

Avant is one of the easier lenders to qualify for on our list. Its minimum credit is just a guideline, not a requirement, but most borrowers who get Avant's personal loans online have a credit score between 600 and 700. However, you can likely get a lower rate elsewhere if you have a high credit score. The best 0% APR credit cards  may also offer a lower APR, provided you're eligible. 

If you are looking for a smaller loan, Avant's $2,000 minimum is lower than most comparable lenders. Avant funds online loans quickly — if the company approves your loan by 4:30 p.m. CT Monday through Friday, funds are often put into your account by the next business day.

Avant also has excellent customer service hours, with its phone line open at least 13 hours every day of the week. The lender also has a strong mobile app, which is something not all lenders offer. 

Avant Personal Loan Review

The minimum rate for loan amounts above $15,000 is 11.75% APR

11.72% - 17.99% fixed

$5,000 to $40,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive interest rates
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No prepayment or late fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum credit score requirement
• con icon Two crossed lines that form an 'X'. Origination fees
• con icon Two crossed lines that form an 'X'. Slow access to funds
• con icon Two crossed lines that form an 'X'. Limited loan purpose
• con icon Two crossed lines that form an 'X'. Not available in all states

A Happy Money Payoff Loan personal loan is a great option for those with good credit scores who are eligible for the lender's lowest APR. However, borrowers can only use the funds to consolidate credit card debt.

• Loan amounts range from $5,000 to $40,000
• Origination fee anywhere between 0% and 5%
• Won't be able to get a loan from Happy Money if you live in Maine, Massachusetts, Nebraska, or Nevada
• Can only use for credit card debt consolidation
• Loans made by one of Payoff's lending partners

Happy Money® could be another good option for an online loan if you have a lower credit score, as its minimum requirement of 640 is relatively low. If you have a good credit score, the company also offers one of the lowest APRs of lenders on the list. 

Happy Money's Payoff online loans are specifically designed to help borrowers eliminate high-interest credit card debt. This means you are limited in what you can use your loan for — you should choose a different lender if you aren't aiming to consolidate credit card debt. 

The company doesn't charge any prepayment fees or late fees, but may charge an origination fee between 0% to 5%. Happy Money also has one of the slowest money transfer times of any online loan company, as it takes between two to five business days to have money deposited in your account. 

Happy Money Personal Loan Review

You can prepay your loan at any time with no fee or penalty

6.40% - 35.99% fixed

$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Small minimum loan amounts
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Quick loan fund disbursement
• con icon Two crossed lines that form an 'X'. Only three and five year terms
• con icon Two crossed lines that form an 'X'. Potential for high origination fees

Upstart could be the right lender if you have a strong work and education history, but you have a low credit score or limited credit history. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.

• Loan amounts range from $1,000 to $50,000. However, borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100
• Loan term lengths are either 3 or 5 years
• Can have origination fees up to 8%
• Considers employment and education history when making loan approval decisions
• Loans are made through one of several Upstart-powered bank partners

You may qualify for an online loan more easily with Upstart than with some of the other lenders on our list — the minimum credit requirement for Upstart is 600. As a result, if your credit score is low, you might end up paying a high APR and could potentially get a better deal elsewhere. 

Upstart offers the smallest loan amount of all the lenders on our top picks, so if you just need a little cash to tide you over, this could be the lender for you. Additionally, the company usually funds loans within one business day, which is useful if you need your money fast. 

Upstart Personal Loan Review

Online Personal Loan Lender Trustworthiness

Whether you're interested in taking out a $5,000 loan  or a  $20,000 loan , finding the right lender can help improve your experience and increase the likelihood of success with your online personal loan application. We've only selected providers of online loans with no public controversies in the last three years. We've also compared each institution's Better Business Bureau  score.

The BBB, a non-profit organization focused on consumer protection and trust, measures businesses based on factors like their responsiveness to consumer complaints, truthfulness in advertising, and clarity about business practices. Here is each company's score:

All of our top picks for online loans are rated A or higher by the BBB. Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most comprehensive information possible. 

What Makes an Online Loan the 'Best?'

Finding the best fit for an online loan.

To find the best choice for your individual situation, take stock of the factors that are most important to you before you apply for a personal loan online.

Competitive Rates & Fees

Many borrowers prioritize the lowest loan interest rate when choosing a lender. You can find a very wide range of APRs between lenders. Since the interest rate determines how much you'll ultimately repay, it's important to compare online loans offered by a wide range of lenders.

You'll also want to make sure you understand any fees the lenders charge, including application fees, origination fees, and late fees. These can add a significant amount to the total cost of your loan. Many online lenders charge low fees or none at all.

Speed and Convenience

Borrowers may find it faster and easier to take out a loan from an online lender. Many offer a prequalification process, which enables you to get an idea of the interest rate, terms, and other features of a loan you might qualify for without any impact on your credit score. Online lending platforms also frequently have useful loan calculators and other tools you can use to research before you apply for an online loan. The best online personal loan lenders also tend to have very fast funding times, with some able to get the money into your account the same day your application is approved.

Customer Experience

Remember that with an online lender, there's very little human contact during the process. And when you do have questions or need assistance, it often comes from automated chatbots. If you have a lot of questions and prefer the human touch to address concerns about your individual situation, you might be better off applying for a loan in person at a bank or credit union.

Best Online Loans FAQs

Reputable online lenders use the same encryption and security measures as banks. Always verify a lender's reputation and customer reviews.

Yes, the rates offered by online lenders are often better than those you'll find at a bank. Online lenders have lower overhead costs, which can translate to more competitive rates for borrowers.

Some online lenders offer same-day or next-day funding. The speed depends on their processes and your loan type.

You do not need perfect credit to get an online loan. While the best rates go to those with strong credit, many online lenders cater to a wider range of credit profiles.

No, it is not difficult to apply for loans online. Online lenders focus on user-friendly applications. Many offer pre-qualification to check your potential rates with no impacton your credit score.

Why You Should Trust Us: Our Methodology

Personal Finance Insider's mission is to assist smart people in making the best decisions possible with their money. With that in mind, we compared many different online loans, digging into the fine print so you don't have to. We evaluated several factors to determine the best lenders, including:

• Annual percentage rates: The lower the interest rate you have to pay on your online loan, the better. So we focused on lenders who have solid rates for people with fair or better credit histories.  
• Loan term length:  We looked for online loans with a variety of repayment lengths. 
• Loan amount range:  We know some people are looking for a small amount of cash, while others are looking to take out a substantial amount. We found lenders with a variety of minimum and maximum loan amounts to best fit your needs.  
• Minimum credit score: Depending on your credit score , you may be eligible to take out an online loan from some lenders and may not qualify with others. We picked lenders with a range of minimum credit scores so you have options no matter your credit history.
• Trustworthiness:  Borrowing from an honest lender is often a top priority for many people. We made sure each lender had an A or above grade from the Better Business Bureau to provide the most transparent lenders possible.

See our full ratings methodology for online loans and personal loans » 

OneMain Financial Personal Loan disclosure: Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral) and your state of residence. If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit  omf.com/loanfees  for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: $3,100. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers in these states are subject to these maximum loan sizes: North Carolina: $9,000 for unsecured loans to all customers, $9,000 for secured loans to present customers. Maine: $7,000. Mississippi: $15,000. West Virginia: $14,000. Loans to purchase a motor vehicle or powersports equipment from select Maine, Mississippi, and North Carolina dealerships are not subject to these maximum loan sizes. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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