How big is the credit repair services industry in the U.S? The market size of the credit repair industry in the United States is $3.4bn in 2021. In our present-day society, the credit reports and scores of your company are some of the pre-requisites for getting a bank loan application approved.
Before we discuss facts about credit repair services in the United States, permit us to let you know the definition of a credit repair company and how it works.
What Is a Credit Repair Company?
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A credit repair company is a business entity whose core responsibility is to help you improve your credit score and report for a stipulated fee.
How do credit repair services charge? Is it really profitable? Depending on the credit repair company you hire and the amount of work that needs to be done, you can pay between $19 to $149 per month.
The two basic billing methods credit repair companies utilize are:
- A monthly charge
- One-time fee for every derogatory mark removed
If you opt for the monthly billing, the credit repair services will handle all the pressing issues that might be affecting your credit.
What are the biggest credit reporting companies in the United States in 2021? They are: TransUnion, Equifax and Experian. These big companies obtain their own information about your mortgage or car loans or credit cards by themselves.
While these big credit reporting companies might have amazing reviews out there, it’s always a good idea to work directly with a credit repair agency near you when fixing your bad credit score.
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Below are the three raw, shocking and interesting facts credit repair companies in the United States that you need to know:
1. Credit Repair Services Always Have a Free Annual Report
The best way to identify and correct errors is to get your credit report by yourself and analyze it. If you fail to analyze the information given to you in this free annual report, errors will emanate that will spoil your credit.
Unfortunately, not many people are aware that they have the right to demand for their annual credit report. This is where working with a credit repair services professional comes handy. When you hire them, they go through your credit history, spot errors and correct them immediately.
2. Almost 77 Million Americans Adult Have a Report of Debt
An estimated 35% of the total U.S. population already have a report of debt. We are talking of 77 million Americans who are on an average of $5,178 in debt. This is one of the most shocking credit repair statistics you will come across.
A new research published by Jama Network revealed that in 2019, collection agencies in the United States held $140 billion in unpaid medical bills, making it the largest source of debt that Americans owe collection agencies.
A report made available in the first quarter of 2021 by the Federal Reserve Bank of New York’s Household Debt and Credit shows that mortgage loan debt is the largest source of debt by Americans followed by student loan debt. Coming third on the list was auto loan debt, then followed by credit card debt, personal loan & payday loan and lastly, home equity lines of credit. An easy way to get out of student loan debt is to learn about money and budgeting in school.
3. 40% of the Disputes Are Related to Debt in Collections
According to a 2011 statistics from the Consumer Finance, credit report companies in the United States received 8 million emails and calls from Americans to solve up to 38 millions items in their credit files.
40% of the disputes is debt in collections and are 5 times the disputes culminating in mortgage information. As a result of this, most consumers are left with no option than to write their creditor a debt dispute letter. If you are new to the world of credit repair services in America, you will definitely want to know what a debt dispute letter is.
What is a debt dispute letter? A debt dispute letter demands that the collection agency demonstrate that you do indeed owe the debt and can provide detailed information and documents to prove the amount owed.
What are the best dispute reasons for collections on credit reports? Most of the negative information on consumers’ credit reports are caused by disputes in collections. If a consumer believes that the information on their credit report is incorrect, the Federal Law gives them the freedom to file a dispute.
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Are Credit Repair Services in High Demand?
Aside from the fact that this is a billion dollar industry, the demand for professionals in helping most Americans pay off their credit card debt, student loan debt and even mortgage loan debt so as to maintain a clean credit report is on the increase.
If you own the best credit repair company in major cities like New York City, San Francisco, Chicago, Washington DC, New Orleans, Los Angeles, Columbus, Jacksonville, Denver or San Diego, you will definitely earn not less than $20,000 monthly.
If you are privileged to create an information product from your knowledge, you can earn as much as $1 million in a year like Ashley Massengil is doing. That tells you how profitable the industry is.