LOGIN
TRY FREE

CREATE YOUR STARTER ACCOUNT

Your first 30 days are FREE...

Upgrade, downgrade or cancel anytime.

How to Start a Credit Repair Business

in

icon-starting
Cost of starting a credit repair business

Roughly $200

icon-starting
Cost to obtain the required $10,000 bond:

Roughly $200

icon-starting
Potential average profit

$20,000 monthly

Credit Repair Laws in Delaware

The state of Delaware does not post any documents about the operation of Credit Repair organizations. It is likely that they defer to the Federal Credit Repair Organization Act, as shown below.

The Credit Repair Organizations Act (CROA) is a federal law passed in September 1996 that regulates organizations whose purpose is increasing consumer’s credit score through credit repair. One of the most important things the CROA did is make it illegal for credit repair organizations to make false claims. Don’t worry though, staying compliant is pretty easy after you get familiar with the law! This law is moderated and enforced by the Federal Trade Commission (FTC), so the FTC has the authority to close down any credit repair organizations that are operating outside the parameters of these laws (like fraudulent or illegal activities).

The main sections include mandates that:

  • You can’t misrepresent your services (no false claims about what you will do for the client and definitely no promise of working and then not doing the work).
  • You must provide a written contract between you and the client that the client signs.
  • Your clients have three days to cancel the contract.
  • You can’t charge until services are rendered (most companies will do some initial document processing and then charge the client for the work they have just done).
  • Consumers can sue and get refunded all money paid (plus legal fees and damages)  if the credit repair organization is found to have violated the CROA with that consumer.
  • State laws can’t change or render any of the CROA ineffective.

Simply put, these laws were put in place to protect people from credit repair companies using scammy business practices. As long as you’re not trying to be sketchy and scam people, you should be able to stay compliant easily!

To read the Credit Repair Organizations Act in full, visit the United States House of Representatives’ record of the act here.

The Credit Repair Organizations Act (CROA)

15 USC CHAPTER 41, SUBCHAPTER II-A: CREDIT REPAIR ORGANIZATIONS

For additional information about starting a credit repair company in [STATE] contact your state or an attorney.

Requirements for Surety Bond for Credit Repair Business in Delaware

A few states do require a surety bond. (At the time of this writing most states do not require a bond.) If your state does require a bond, you are not required to secure your bond from your same state.

Bonds are a minimal expense (usually under a few hundred dollars) because you order them from a bond service and pay only a small fraction of the bond yourself. A Credit Repair Services Organization Bond protects you. For more information about Credit Repair Services Organization Bonds, contact BondsExpress.

If you get your bond through a bonds service, the amount you pay will generally be 2-3% of the total bond amount (this cost varies depending upon your credit).

Statute of Limitation on Debt in Delaware

STATE credit repair businesses must be knowledgeable about the statute of limitation governing debt in STATE because this will guide your business decisions and enable you to best help your clients. The statue of limitations essentially limits the time that a creditor can legally sue a consumer for payments for a debt. Statutes of Limitation (SOL) do vary by state and debt type. In general, it is usually between 3 to 6 years, but sometimes longer.

To learn more about the statute of limitation laws for your state, click here.

Delaware Credit Repair License

We’re not aware of a state requirement for a “credit repair license” to operate a credit repair business in Delaware. However, many find getting training and a certification useful because it:

  • Conveys competence to prospective clients
  • Helps gain the trust of clients
  • Arms you with the training and tools you need to help clients and build a recurring revenue model

The American Credit Repair Academy http://try.creditrepaircloud.com/academy/; offers training, resources, and credit repair certification

Market Potential for a Delaware Credit Repair Business

Market Temperature:

0 1 2 3 4 5 6 7 8 9 10
icon-starting
Percentage Of Credit Reports That Have Errors

79%

icon-starting
Total Number of People Living In Delaware

952, 065

icon-starting
Average Debt on Credit Report

$5,700

icon-starting
Percent of Population With Credit Scores Below 700

44.3%

icon-starting
Percent of home buyers getting a mortgage for their home purchase

88%

How to Profit with a Credit Repair Business in Delaware

1. Start

  • Get a powerful CRM that handles your business for you
  • Train and learn about the business
  • Create a professional website
  • Market your business to new clients

2. Run

Use software to automate the tasks of a credit repair business in Delaware:

  • Import clients’ credit reports
  • Generate dispute letters in seconds
  • Manage recurring payments and affiliate programs

3. Grow

  • Capture new lead and close more deals
  • Use the data you gather to scale your business
  • Automate more functions: signature capture, payment integrations, meeting scheduling, and more

All of this is available with Credit Repair Cloud

TRY IT FREE!

Frequently asked questions

How popular is Delaware as a business home state?
65% of the fortune 500 have their business home in Delaware, so it’s not a bad idea to try your luck as a credit repair business in this state! Delaware is a popular state for businesses to operate in because, as they point out in their guide Why Corporations Choose Delaware, Delaware has a small population that generally sides as pro-business and has provision to help the administrative side of running a corporation go off without a hitch.
What business name should I choose for my credit repair company in Delaware?
There are no regulations we know of regarding what you call your Delaware credit repair business, but you should check what business names are available in Delaware by entity type and name on the registry.
How do I get a Certificate of Good Standing in Delaware?
Delaware businesses can get a Certificate of Good Standing from the Division of Corporations by following the instructions on their site. After your business is registered and you’ve grown it to a profitable credit repair company, this is some of the icing on the cake you may consider.

What Other Credit Repair Businesses Say

ROB Y

Laredo, TX

We have a tax preparation business. My partner and I decided to branch out into credit repair. Credit Repair Cloud now helps us to build our customer base for the tax business. It is a wonderful tool for lead generation. Credit-Aid provides superior customer service. You have gained a customer for life!
testimonials-bob.jpg

MANAL MASSIS

Houston, TX

I love your system! This was the best investment ever and the customer service with Credit Repair Cloud is excellent. You have a very good team. I wish companies were just like you. I've tried everybody out there and your system is very powerful. Thank you for helping me. God bless you!
MANAL MASSIS

Join our next free training!

How to Quickly Start a Profitable Credit Repair Business

MINUTESSECONDS
secret1.png

Secret 1

How Credit Repair is the LOWEST COST & MOST PROFITABLE business you can launch. . .

Secret 2

How our step-by-step “Dispute Process Blueprint” gives you EASY Credit Repair Results without being a credit expert. . .

Secret 3

How our easy method gets you UNLIMITED Clients without paying for advertising. . .

Legal disclaimer: Our software products and resources offer credit information, not legal advice. We make every effort to ensure the accuracy of the information and to clearly explain your options. However, we do not provide legal advice (i.e.; the application of the law to your individual circumstances). For legal advice, please consult an attorney, your city or your state.