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by | Sep 12, 2021

Guide to Start a Credit Repair Business in Massachusetts

Planning to start a credit repair business in Massachusetts? Here’s all you need to know. Understand the Massachusetts credit repair laws to ensure you are doing business legally. The surety bond required. And the best credit repair software to use.


First, let’s see Massachusetts’s economic status to determine whether building a credit repair business in Massachusetts is profitable.


Massachusetts is the home of 6.96 million people in the USA. It is the second state with the highest median home income which is $85,843. Next only to Maryland. Massachusetts has a 9.8% poverty rate which is much lower than other states like Illinois and Indiana. The state has a good average credit score of 729. However, 10% of its consumers have credit delinquency. That’s approximately 696,000 residents of the state.


Massachusetts Average CreditMassachusetts is top 5 with the highest average mortgage loan debt in the entire country. At $292,513. This is likely because of its expensive median home value which is 418,600 on average. According to statistics, there are about 68.3% of homeowners with mortgage debt.


Aside from this, Massachusetts has a high average student loan debt. $31,821 as of 2021. The state is known for having high-quality education. But with this, the state has one million residents who have student loans. Massachusetts also has a high average auto loan debt of $15,637 and average credit card debt of $6,213.


Now that we have established that many residents of the state are burdened with bad credit. And need help to restore credit to have better chances of getting loans and improve their financial health. Let’s understand the Massachusetts credit repair laws.



Here are the restrictions under the Massachusetts credit repair laws.


CREDIT REPAIR LAWS IN MASSACHUSETTSAccording to the credit organization act, NO person or credit repair business in Massachusetts is allowed of the following:


  1. Received any form of payment before the completeness of the credit repair services to be performed. Unless the service provider obtained a surety bond from an authorized surety company in the state.
  2. Received any payment solely for referral of a consumer to a creditor who will extend credit to the consumer. If such credit extension is significantly the same terms as those available to the general public.
  3. Advice a consumer to make any untrue or misleading statement about his/her credit standing to any of the credit reporting agencies or creditors.
  4. Defraud or deceive a consumer in connection with credit repair services by making untrue or misleading representations of the services offered.
  5. Conduct business without a written contract signed by the consumer.

Disclaimer: This is not legal advice. We tried our best to provide you with the most accurate information about credit repair laws in Massachusetts. However, please note that laws and regulations may change at any time. Please do further details or consult a lawyer for legal advice.


What is the required surety bond in accordance with Credit Repair Laws in Massachusetts?

The Commonwealth of Massachusetts required a surety bond is $10,000. This is to protect consumers of the credit repair businesses from any damages incurred by the organization’s failure to comply with the services to be performed.


Things you need before conducting a credit repair business in Massachusetts.


  1. Contract. A credit repair business should provide a written contract to the consumer prior to conducting any services. This written agreement should include:
  • A detailed description of the services to be performed.
  • Estimated date the services will be completed, which should not be more than six months.
  • Complete amount of services to be performed.
  • Statement of the consumer’s rights.
  • Attachment of 2 cancellation of notice form
  • Date
  • And consumer’s signature.
  1. A website. This is important to have a platform for your services and to allow people to easily find you.
  1. A reliable credit repair software. This will save you 90% of your valuable time so you can focus on what matters most. I recommend investing in a credit repair software that has all your needed tools to:
  • Get and review client’s credit reports
  • Generate dispute letters automatically
  • CRM for your marketing campaigns
  • Business Lead Finder
  • Emailing System
  • Invoice System
  • Client and Affiliate Portals
  • Zapier integration to automate repetitive tasks

Visit for more information about reliable credit repair software.

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