Upfront Fee’s
Charging a client before they have had any credit repair performed is illegal, but offering services that you can complete before you charge can be a legitimate way to help your clients. Here are some options to consider:
Membership: Credit repair memberships can include discounts for ancillary products, education, credit related tools, and membership portals and specialized services. You can make this legitimate if you are NOT providing credit repair advice. Just over other services that they can receive.
Audit: Taking time to audit a clients credit report can help you determine a strategy for credit repair as well as actionable steps for clients to help improve their scores throughout the credit repair process. To stay compliant make sure that you actually perform the audit and deliver the results in a trackable format such as email or download.
Setup Fee: Entering derogatory items, collecting docs, prepping…pretty much anything you will need to do to start disputing items on a clients credit report takes time. As long as the services you are providing are listed and performed before you charge, you can charge a Setup Fee to your potential clients.
Review Fee: As mentioned above, most companies have a review or setup fee with the price between $50 – $99 with the average price of $79. This fee is usually charge around 5 to 7 days after the initial review.
Next many usually charge a monthly fee between $39 -$99 per month depending on the client with the average price of $49. This fee is usually charge 30 days after the review fee.
Process for Collecting: The process should be as follows: Get an authorization of the credit card upon the client signing up to verify that the the funds are there. Once your review the account you can charge the account by allowing the sale to go through. Make sure you tell you client to budget because many banks will hold the funds.
You next must require your clients to get a tri-merge credit report at their own expense.
Each month you will charge your client after work is done and you can get an authorization if no work has been done and process the charge once work is done.
Pay for Deletion is very popular. Here is how you can break it down for your client.
PRICING/RATES
We only get paid as we achieve positive results for you.
SO YOU ONLY PAY FOR RESULTS. We will NEVER ask you for any upfront fees and we start working for FREE on your credit profile.
$65.00 to $85 per item per Bureau for the following accounts:
Late Payments
Collections
Charge Offs
Inquiries
Incorrect Personal Information
Garnishments
Closed Accounts
Negative Settlements
$#200-300.00 per Bureau per item for the following accounts:
Bankruptcy
Tax Liens
Judgments
Foreclosure
Repossessions
Here is an example of what your first bill would look like if we deleted a collection account:
For a Collection Account, we charge $65.00 per Bureau. So if we are able to delete a COLLECTION ACCOUNT, that was listed on all three bureaus,We will bill you $65.00 per bureau X 3 Bureaus = $195.00
Example: We also charge a ONE TIME processing fee…of $199 which will be billed to you at the time we bill you for the first results.
So your first bill will be:
$195.00 for the deletion of the COLLECTION ACCOUNT
$199.00 ONE TIME processing fee,
Total of: $394.00
Per deletion is very popular because your clients are only paying for results.
Flat Fee: If you charge a flat fee, make sure you spell out what works will be done prior to charging. For example say you charge $1,000. You maybe offering a re-score type of service or promising something else that will be spelled out for your client and they sign-off on that services. You will first get an authorization of the credit card to make sure funding was there and once you complete the work you will process the charge with your merchant.