Credit Repair Services in the US Industry Market Research Report from IBISWorld Has Been Updated

Consumers are expected to continue seeking ways to repair their credit score, but industry operators are expected to offer complementary services in order to provide added value. For these reasons, industry research firm IBISWorld has updated a report on the Credit Repair Services industry in its growing industry report collection.

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Free online services will continue to pose a threat to the industry.

New York, NY (PRWEB) August 04, 2014

The Credit Repair Services industry largely moves countercyclical to the business cycle; therefore, the recession increased demand for credit repair services due to rising unemployment and falling disposable income. These factors, coupled with an increased debt load taken on by many consumers during the housing boom, caused many households to fall behind on payments and seek assistance from industry professionals who help identify errors in credit reporting and dispute the inaccurate information with credit reporting agencies. “In the years following the recession, however, unemployment and household debt declined,” according to IBISWorld Industry Analyst Sarah Kahn. Additionally, many debt-ridden consumers did not seek out industry services, preferring to avoid the fees, file for bankruptcy or take advantage of free online services similar to those offered by this industry. Consequently, industry revenue is expected to decline at an annualized rate of 3.8% to $6.0 billion over the five years to 2014, including an 8.6% drop in 2014 alone.

Although access to credit surpassed prerecessionary levels, aggregate household debt is on the rise, and banks and other lenders are once again lending to risky credit-card borrowers, industry revenue is expected to continue declining. “With the help of the Federal Trade Commission's do-it-yourself instructions, increasingly financially- and internet-savvy consumers are turning to credit reporting agencies on their own,” says Kahn. Additionally, the industry's negative reputation stemming from deceptive practices and charging advanced fees for services, both of which violate the Credit Repair Organizations Act, introduced skepticism in industry services; this further encouraged consumers to improve their credit scores through other means.

According to a 2013 Federal Trade Commission study of the US credit reporting industry, 5.0% of consumers have errors on one of their three major credit reports. Consumers are expected to continue seeking ways to repair their credit score, but industry operators are expected to offer complementary services in order to provide added value. As the percentage of services conducted online increases, however, potential consumers will turn to free options.

For more information, visit IBISWorld’s Credit Repair Services in the US industry report page.

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IBISWorld Industry Report Key Topics

This industry identifies errors in credit reporting and disputes inaccurate information with the appropriate organizations to improve credit ratings. These services are typically undertaken on behalf of a client who has known credit problems, such as a recent bankruptcy. This industry does not include nonprofit firms that offer credit-counseling services.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


Contact

  • Gavin Smith
    IBISWorld
    +1 (310) 866-5042
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