Technology

How to Start a Credit Repair Company in Florida

3 Mins read

Millions of Americans are in debt today resulting in bad credit scores and a huge challenge in taking out loans, mortgages, and other financial assistance programs that will allow them to make huge purchases like buying a house, a car, or paying off their college tuition. 

When they finally realize that they need to turn things around and work on making their credit score better, they usually rely on a credit repair company to help them achieve that goal.

In Florida, there is a huge demand for credit repair companies and starting your own business means that you can make an average of $4,000 to $10,000 per month, that’s if you do things right. To get started, here are some very important tips that you should keep in mind:

1 – Learn about the credit score process.

Although you don’t need a special degree to start a credit repair business, it’s very important to learn about the process of reviewing and evaluating credit scores by getting copies of credit reports from credit bureaus like Trans Union, Equifax, or Experian. 

You can then examine these documents and compile all the errors that you see along with an explanation for each item. Then, file a dispute for these errors with the concerned credit agency and get in touch with creditors to request them to correct these errors, as they can affect the client’s credit score. 

2 – Know the legal requirements in Florida.

Florida is one of the states that have a set of laws on how to start and run a credit repair company, and it’s very important for you to learn about these laws to make sure that you don’t violate them. 

For one, the Credit Repair Organizations Act (CROA) prohibits credit repair businesses from making false claims. The state also requires a surety bond to protect your clients from damages caused by the actions of your business. If you acquire a bond through a bonds service company, you will need to pay 2-3% of the total bond amount. 

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Florida also has a statute of limitations on debt, which can serve as your guide in helping your clients get back on track with their credit score and allow you to make the best decisions for your credit repair business. 

This statute limits the time that a creditor can sue a consumer legally for hi debt, which is between 3 to 6 years. Learning about this statute is very important so you can offer the best options for your client. 

3 – Where’s Your Merchant Account?

Credit repair companies have a tough time establishing trustworthy relationships with banks. It has nothing to do with how you do business, and everything to do with the laws surrounding credit repair, and most importantly, the customers. You will be dealing directly with clients who are notorious for not making payments, who have low credit scores and who bounce checks and payments like they’re playing tennis with a rubber ball. 

That means that you have to establish a high risk merchant account for a credit repair company. The good news is that high risk processors will almost always be better to deal with than banks. See, a bank us there to process your money, plain and simple, but a high risk merchant account is more like a coach. These processors want you to succeed and their business depends on it as well. So they will work with you to strategize the best way to keep chargebacks down. 

4 – Physical and Online Presence

Finally, you need to make sure that you establish your business with both a physical and an online presence in order to build your credibility with clients. 

You can lease an office space where your staff can work and clients can go for consultations, and you can also create a website and social media platforms to be more reachable to people who need help with sorting out their credit score in Florida. Are you ready to get your business started?

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