The Growth Of The Credit Repair Business Opportunity

Everyone is saying that times are hard and that no one is making any money nowadays. But that doesn’t mean you have to believe it. Rise above all the negativity about who is earning what (and who isn’t earning anything) and do something for yourself. Start a business that has proven to be successful with your own credit repair business.

Why should you start a credit repair business?

Even if you have just recently started looking into what business to start, you probably already realize the advantages of a credit repair business! There are many reasons to consider credit repair.

It is a business that can be run easily at home, with little start up cost required. You can do it from your kitchen table with just your laptop. You can do it as a full time job or just for a couple of hours each day, and you get to set your own hours. And, it is a business that can succeed even if the economy is bad.

But many people love being in the credit repair business because it gives them the chance to help people while earning a living. Credit repair may not be the first thing that comes to mind when you are thinking of ways to help people, but it really is!

When a client has a bad credit rating, they may not be able to get the new car they need, or the home of their dreams. Bad credit may mean they can’t start a business, or even get a job.

Even worse (and more frustrating), is that sometimes having a bad credit rating isn’t even the client’s fault! Mistakes can easily happen on a person’s credit report; their name or social security number can be mixed up with someone else’s.

These errors can be very difficult to correct, and problems from these errors can get even more serious. Your client may not only have problems getting the loan they need for a new car, but they may be getting harassing phone calls from creditors. And, they may end up having their wages garnished. All for something that isn’t their fault!

Or maybe your client didn’t take their credit very seriously in their younger days, and now they need some help getting their credit report cleaned up. They are anxious to make things right, but they just need a little help figuring out the best way to repair their credit.

This is where you come in as a credit repair professional, where you get to be the hero!

The FTC and members of congress realize credit report errors are a problem

Even the government is concerned about credit report errors and the impact these can have on consumers. According to a Federal Trade Commission (FTC) study of the U.S. credit reporting industry, 5% of consumers had errors on one of their three major credit reports. These errors could lead to them paying more for important things such as auto loans and insurance.

The study also found that:

• One in four consumers identified errors on their credit reports that might affect their credit scores
• One in five consumers had an error that was corrected by a credit reporting agency after it was disputed, on at least one of their three credit reports
• Four out of five consumers who filed disputes experienced some modification to their credit report
• Slightly more than one in 10 consumers saw a change in their credit score after the credit reporting agency modified errors on their credit report
• Approximately one in 20 consumers had a maximum score change of more than 25 points and only one in 250 consumers had a maximum score change of more than 100 points.

Sen. Claire McCaskill (D-Mo.) testified in front of a Senate Commerce Committee at a hearing on inaccurate information on credit reports. She told them, “Errors can mean the difference between obtaining a car loan or not, or paying a higher price for a mortgage. Errors can result in credit issuers, like a small town bank, declining credit to a potentially valuable customer, or issuing credit to a riskier customer than intended.”

She suggested that the industry needed financial penalties to keep similar mistakes from happening. Sen. David Rockefeller (D-WV), chairman of the Senate Commerce Committee, also suggested that legislation was needed.

“The credit bureaus have a legal obligation to take all reasonable steps to maximize the possible accuracy of credit reports, and when they do contain errors, provide consumers with the means to fix them,” said Rockefeller. “I expect this industry to do everything it can to ensure that the system works for the ones that it impacts the most, everyday Americans. If today’s hearing uncovers problems with the credit reporting industry, I urge these companies to tackle those problems with a sense of urgency.”

Clearly, consumers need help with this important issue.

How to take advantage of a credit repair business opportunity

The first step to helping your clients, once you decide to be a part of the credit repair business, is to learn all you can about the credit repair business. You need to learn the secrets to credit repair and how to submit credit disputes on behalf of your clients. You need to have a thorough understanding of how credit reports work, so you can help your clients to understand them.

It may sound like too much to take on, especially if you don’t consider yourself a financial wizard. However, there are some simple ways that you can get credit repair business training.

• To start with, you can read as much about credit and credit repair as you can. Look around online for credit repair forums and join in on the discussions.
• Get your own credit report and take a close look at it.
• Find a mentor, someone who has been in the credit repair business for years.

This may not be as easy as it sounds, though. This is where a credit repair business training resource comes in. This is a great way to communicate with professionals who have been in the industry for years. It will also help you to educate yourself about the industry and the best way you can help your clients. It will help you understand what you can and can’t do when negotiating with your client’s creditors and collection agencies, and it will help you to ensure that your client won’t be taken advantage of.

Three Steps To A Financially Secure 2016

A great way to begin the new year is by reviewing your personal financial plan. It’s a good feeling to begin another year with financial goals ready to push forward.

Using currently known variables, you can predict future cash needs for major life transitions, such as retirement. I’ve identified three quick steps to easily complete before 2016 begins.

Portfolio Checkup

Revisit your risk profile to consider how much or how little risk you’re ready to take with your money. All investments involve risk, but how you divide your investment money among asset types (stocks, bonds, short-term reserves) is important for developing your best “sleep well at night” risk level.

Matching three risk factors with your personality will help you invest long-term with best results. Commonly used risk profile surveys are found with a Google search, or your own brokerage version will help gauge your risk level.

Time horizon: This is the length of time you have in years to meet financial goals and make up losses that occur. Longer horizons allow for higher risk and time to regain losses. How long can you steadily invest before you’ll need to take income?

Cash requirements: If cash is needed to meet day-to-day expenses, you have the shortest of time horizon, and assets used will be low-risk but lower-return. Short of a major calamity, can you invest without pulling money for current expenses for more than five years?

Emotional Factors: Your emotional tolerance to risk will decide the makeup of your portfolio. As a subjective element, this factor is not difficult to calculate. We all know how we react to market ups and downs. Reflecting this in your portfolio allocation is vital to successful wealth building.

Based upon your risk profile check-up, you may need to rebalance your investments:

  • sell assets no longer fitting your profile and investment goals
  • add assets that better match investment needs and goals
  • simply enjoy the fact that your current portfolio still matches your risk profile

Cash Needs Analysis

Estimating how much cash you’ll need for a large personal loss and determining cash availability falls pretty much within the insured loss area, such as car, home, business, and life. The reason we carry insurance is for unanticipated life events that take a lot of cash, and it keeps us from tapping long-term investments.

Examine current coverage levels for this step. Keep your cash needs chart short and not too detailed. Check three primary areas for cash needs and cash available.

Review personal liability insurances

  • Auto, homeowners, small business, umbrella liability, et cetera.
  • Have your needs changed enough to increase, decrease or drop coverage?
  • Are insurance deductibles acceptable?
  • Can you meet a deductible with cash or would you have to use a credit card?

Review life insurance

  • Whether term or permanent life, the purpose is to supply immediate cash when death occurs.
  • Life insurance death benefits are income replacement, even if covering a stay-at-home spouse or partner. A non-working spouse or partner brings tremendous value into a home that is hard to monetize.
  • For example, a person earning $100,000 annually will add a million dollars to the home over 10 years, not considering increases in wages.
  • Coverage amount requirements are usually greater than we think.

Cash-Available-for-Use

  • Don’t forget to make allowances for current expenditures that will no longer be continued.
  • Examples could be: one less car payment, lower budget allowance in food, clothing, personal expenses, et cetera.
  • Consider cash received from Social Security, 401K, separate savings accounts, and other sources.
  • The goal is to realize that major losses impact families beyond personal finances. A major loss changes family dynamics, and the immediate need will be having the time necessary for family decision-making, readjustment and future direction.

Debt

Debt always looms in our culture, and it’s another reason we can’t seem to keep long-term financial goals on track. Begin each new year assessing your debt burden.

Debt is a double whammy of interest cost stacked on more interest cost.

  • The first interest cost begin when you buy using debt.
  • The second interest cost is the interest you’ll pay for incurring debt.
  • If debt in your life is revolving credit (charge cards), you’re often dealing with never-ending payoff if not managed properly.
  • Interest paid on debt compounds faster than income received compounds in an investment portfolio.

Finally, you can complete this check-up in about three hours. Each step is an important part to make sure future cash needs are met. Consult personal financial professionals, and keep your future on course for success. It’ll be a great start to 2016 and give you a sleep well at night financial plan.

I have been an active investor for over 35 years. My lifelong interest in personal finance has led to teaching community classes to a variety of groups. Retirement activities include travel and serving as a volunteer site coordinator with the VITA Tax Program.

Tax Preparation Tips for Small Business Owners

Most Americans mistakenly believe that corporations create most of the new jobs in the country. It’s not their fault, of course. Big companies have smiling spokespeople who heap fulsome praise on their benefactors anytime they add to their workforce. But the truth is that small businesses have created nearly two-thirds of new jobs over the past 15 years, according to the U.S. Office of Advocacy.

Unfortunately, small businesses have not received the same incentives and tax breaks that Washington customarily extends to corporations. After all, they don’t have lobbyists and representatives pleading their case to elected officials. Due in no small part to the Great Recession, politicians have finally gotten the message that they must protect and encourage small business growth if they hope to stimulate the economy.

Recent Deductions

The Small Business Jobs Act and the Affordable Care Act offer substantial deductions and credits for capital investments and health insurance bills. According to the law, any small business owner who employs fewer than ten full-time workers can claim the maximum tax credit to help them cover health insurance premiums- currently a refund of about 35 percent. It is important to note that the fewer workers a company employs, the more deductions its owner can claim.

Tax deductions are particularly attractive for the self-employed individual who works alone. They can now subtract the cost of their health insurance from their business profits and self-employment taxes. These simple credits have encouraged thousands of ambitious people to take the risk of opening their own companies. With lower debts and greater government incentives, small firms should lead the way as the economy continues to recover from the global recession.

Contact a Tax Preparation Professional

Many of the new programs and provisions that owners can benefit from are a bit wonky. There is, for example, the Section 179 provision, which lets companies write off the cost of all qualifying equipment and computer software that was made in certain years. As we said, it can be a bit technical, which is why it is probably a good idea to hire a tax preparation professional to explain it all to you.

How Can They Help?

Even though the government is offering small firms more than it has in a long time, there are strings attached. We know, for instance, that IRS agents are cracking down on business owners because the IRS audit rate for them is at its highest level in the past decade. So, if you are going to take advantage of these helpful programs, make sure you do it correctly. A tax professional can help you fill out all the forms and make certain you’ve followed the rules set down by the IRS.