Credit repair is a great career choice because it provides the opportunity to help people improve their finances.
However, there are many misconceptions about how to become a credit repair agent.
Many credit repair companies claim to offer expert advice and guidance, but oftentimes they don’t actually understand the process.
The good news is, there are resources out there that provide real information and training to those interested in becoming a certified Credit Repair Agent.
These resources include courses offered by the National Foundation for Credit Counseling, Credit Hero, and the American Institute of CPAs.
How To Become A Credit Repair Agent – Qualifications
While there is no specific education required for a career as a Credit Repairs Agent, having a business degree is helpful.
A degree in business or finance helps prepare you for careers in areas such as accounting, economics, math and finance.
A degree in business or finance will give you a head start over those without one. You’ll learn how businesses operate, what motivates people and how to manage money.
These skills are essential to understanding the financial side of credit repair.
You may also gain hands-on experience working with clients in a variety of industries including retail, healthcare, manufacturing and construction.
This broad base of experience will help you become a well rounded credit repair professional.
Communication And Negotiation Skills
Credit repair agents must know how to negotiate with credit bureaus while maintaining good customer relations.
A thorough knowledge of the law is important because it helps you draft the best response to each type of error, complaint, or dispute.
Negotiating with credit bureaus can be challenging; however, it’s necessary to keep your cool and remain professional.
If you tend to get emotional in certain situations it might not be the role for you.
For example, if you respond emotionally to a disputed account, you might accidentally say something like “I’m sorry I didn’t check my records,” when what you really meant to say was “I’m sorry I missed that payment.”
Your client may lose confidence in you. Instead, try saying something like, “That’s okay, we’ll take care of it next month.” Communication is another key skill.
When dealing with three consumer credit bureaus Experian, Equifax, and TransUnion, you want to let your client know that you’re working hard to fix thier problem.
This way, they know you’re committed to helping them improve their financial standing.
Insurance And Licensing
Credit repair companies must comply with certain regulations set forth by each individual state.
In some states, there are specific requirements regarding how much education and experience a person needs to become licensed.
Other states require that businesses obtain insurance coverage for their employees.
Some states even require that companies pay into a fund that helps people who cannot afford to repay their debts.
Many states do not require that credit repair companies provide proof of insurance.
However, most states require that credit repair companies keep records of what they did for every client that hired them.
This includes keeping track of the number of hours worked, the amount charged per hour, and the total cost of the program. The state might also ask for copies of invoices and receipts.
Some states require that credit repair firms register with the government and pay taxes. Others require that they file annual reports about their activities.
Credit repair companies are required to report any changes in ownership or control of the firm.
They must also notify the state whenever someone leaves the firm or takes over management responsibilities.
Other Credentials
Some credit repair agents are required to complete additional credentials to maintain certification and licensing requirements.
This includes continuing education, passing exams, and maintaining licenses. These certifications include those offered by ACFE, NCARB, NCARB, and others.
There are many ways to obtain these credentials, including online courses, seminars, workshops, and conferences.
In addition, there are several organizations that offer specialized training programs. One such program is called Enrichment Education.
This program focuses on enriching the knowledge base of credit repair agents.
Through classes, webinars, and live events, it provides training on topics like understanding consumer debt, fraud prevention, and how to use technology effectively.
Continued Education
Once you become a Certified Credit Repair Agent, it is important that you continue your education to ensure that you remain current with the ever changing market and regulations.
This includes learning about the newest technologies and best practices in the industry, such as how to use social media effectively.
The National Association of Consumer Advocacy (NACA), which certifies credit repair agencies across the United States, offers several courses to help agents develop these skills.
These include the following:
- NCAA Credit Repair 101 course teaches basic principles of consumer advocacy and provides agents with the knowledge necessary to start a successful credit repair agency.
- NACAA offers a variety of online training courses that cover topics like marketing, legal issues, technology, and sales.
- NACCA offers a free monthly newsletter called the Credit Repair Newsletter. In addition to providing information on recent developments within the credit repair industry, the newsletter features articles written by experts in the field.
- NACMA offers a variety of seminars throughout the year. Topics range from financial literacy to managing debt problems.
Employed Or Self Employed?
Credit repair specialists work for either credit restoration companies or multiple level marketing companies. Some people prefer to set up their own business.
Both options have pros and cons. Here are some things to think about before choosing one option over the other.
Starting Your Own Business
If you like being your own boss, then starting your own credit repair company could be a great choice. You don’t have to answer to anyone else.
You decide how much money you make and you can set up your own hours.
Working Under Someone Else
Working for a credit restoration company or a multi-level marketing company gives you access to a larger pool of clients.
But you won’t have control over your own schedule. You’ll still have to follow the rules of the company.
Conclusion
Becoming a Credit Repair Agent is an exciting opportunity to earn extra income while helping others.
Whether you’re employed or self-employed you can find success in this growing industry.
