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How to Start Your Own Credit Repair Business



Launching a credit repair company may seem daunting, but it is less complicated than you think. The demand for these services is high, and you can build a profitable business if your strategy is thoughtful. This model was very rewarding. Here is how to apply it.

Do not expect it to be all sunshine and rainbows in the beginning. Becoming one of the top credit repair companies requires time and effort. You will need to adjust your pricing, website, and methods as your business evolves. Compliance with the Credit Repair Organizations Act and implementation of efficient sales tactics are crucial. So, where should you start?

What Is the Mission of These Companies?

If you are reading this article, you must have at least a basic understanding of repair. This multi-stage process helps consumers achieve better credit scores. By liaising with lenders and bureaus, providers make reporting errors vanish, which pushes the totals up.

All services must be rendered in compliance with the Credit Repair Organizations Act (CROA), which protects consumers from unfair practices. These companies may be run from home, but the biggest providers are office-type establishments. Obviously, any model requires creating a business plan before launch.

Laws to Know

Learn as much as possible about the applicable legislation. The above-mentioned federal law regulates different aspects of your interaction with customers. Here are some of the stipulations:

  • Before commencing work, a written contract must be signed by both parties.
  • You may not ask for upfront payments.
  • Your customers must have a right to cancel the service within a specific period.

In addition, study the Fair Credit Reporting Act (FCRA). Without it, this industry would not exist. It obliges the bureaus to provide only verifiable information. As a result, any mistakes and unsubstantiated entries may be deleted through disputes.

Protect Your Clients

Your clients should be protected from any damage that may arise from your staff’s actions. You never know what may happen in the process when you view and fix the reports. Get a credit repair surety bond to hedge those risks. The procedure and the cost depend on your state.

How to Register the Business

Registration is required for opening a bank account and becoming an official service provider. Different models are available — LLC, sole proprietor, DBA, etc. Consult a tax professional to find the best system for your situation.

Shaping Your Pricing Structure

This industry is highly competitive, so you should offer attractive and clear pricing. Currently, the services cost between $79 and $129 per month. Some companies charge a setup fee, also known as a first work fee. It does not constitute an advance payment (the company completes some initial work before charging the client) and is therefore legal.

Get Training

Credit repair providers are not obliged to have a special certification or degree. Still, you should get educated and certified to be credible, so consider some relevant courses in your area. The experts will teach you the ins and outs of repair, including the following aspects:

  • how to compose and send effective dispute letters;
  • how to analyze reports;
  • how to help clients save money;
  • how the bureaus work;
  • how to create banking and merchant accounts;
  • how to generate leads, etc.

Get Reliable Software

Efficient processes require top-notch software. It will allow you to automate and send out dispute letters, and scale quickly. Popular products come with detailed guides to help you master the systems and promote your services.

How to Advertise Your Credit Repair Business

Today, digital marketing is king, and it requires an omnichannel presence. You can engage different platforms — from Facebook to Instagram. Promotion includes helpful content and paid ads. Note that every system has its peculiarities, so your ads and information must be adapted to each environment. For example, here are a few tips for Instagram.

Set up a business account and utilize all the tools at your disposal. First, you should post valuable content with relevant hashtags. Secondly, Instagram stories will give your potential clients a “backstage” view, so they can build a personal connection to your business. Thirdly, Reels and IGTV will help you get a flood of potential clients.

Describe your company’s results, post testimonials, and offer free training. Businesses should make at least one post and from one to three stories per day. Finally, you could pay to promote your posts and get exposure in a lazy way.

Become a member of Facebook communities devoted to credit repair. These are usually created by service providers, so do not promote your company explicitly. Instead, give useful advice to members, and answer their questions. This will prompt them to check your profile, where you should include the website of your firm. Learn as much as possible about other channels of promotion and automated systems.


Before setting up your company, there is plenty of research to do. Study the laws regulating this industry. Develop a clear understanding of what your company will do, and what tools and services you should employ. Create a thorough business plan. Choose a suitable registration model, launch your firm, and start promoting it! Social media, email marketing, and other modern lead generation methods will help you gain referrals and trust!

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Are Sallie Mae Student Loans Federal or Private?



When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

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Tips to do some fall cleaning on your finances



Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

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How to Get a Loan Even with Bad Credit



Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.



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