THE NO JOB LIFESTYLEWhat a credit consultant does
A consultant reads a client's three credit reports, explains what is hurting the score, and lays out a plan. That plan might cover wrong items to dispute, card balances to pay down, and accounts to keep open.
Some consultants only give advice. Others also send disputes and track the answers, which can bring them under the rules for credit repair companies. Know which one you are offering before you take a client.
Credit consultant or credit repair specialist
People use the two names almost the same way. A consultant usually leans toward coaching and planning, and a specialist leans toward disputes and paperwork. Clients care less about the title and more about clear steps and honest expectations.
What to learn first
Start with how scores respond to payment history and card use. Then read the Fair Credit Reporting Act, which gives consumers the right to dispute inaccurate items, and the Credit Repair Organizations Act, which sets rules for companies that charge for credit repair. Your own free reports at AnnualCreditReport.com are good practice.
Then check your state. Some states require registration or a bond.
Two ways to start
The usual route means paying for software, handling every dispute, supporting clients and finding them too. Our guide on what it costs to start a credit repair business breaks that down.
The free route means you bring people in. Signup is free, you get a ready made funnel, the credit work is handled for your customers, and each $500 sale pays you $200. Earnings depend on your effort, and many people never make a sale.
Questions people ask
Do I need a license to be a credit consultant?
It depends on your state and on what you offer. Some states require registration or a bond, so check your state rules before taking clients.
Do I need a certification?
We know of no federal certificate you must hold. Private courses can help you learn, so check whether your state or clients actually ask for one.
Do I have to do the credit work myself?
Not on the free partner route. The program handles the work and you bring in people who need help.