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If you want to start a credit repair business in South Carolina, it is important to understand the industry including the credit repair laws in South Carolina to avoid legal issues.

South Carolina is among the most populated and poorest state in the US. It has a surface area of 32,020 square miles with 5.4 million residents and has a 13.92% poverty rate. The state has an average credit score of 678 which is 38 points lower than the average credit score of the entire country, 716. According to the South Carolina Department of Consumer Affairs, the average amount of consumer debt in the state has increased to $27,017 in 2022 from $15,813 in the 2019 report.


Here is a summary of South Carolina’s average credit in 2022


Types of Debt Amount
Average Mortgage Debt of South Carolina $179,329
Average Credit Card Debt of South Carolina $8,221
Average Car Debt of South Carolina $5,420
Average Student Loan Debt of South Carolina 38,915



The state is ranked 15th with the highest credit card debt and ranked 5th with the highest student debt in 2022.

In recent years, many consumers of the state experienced getting denied loan applications due to low credit scores.

Many South Carolinians need to improve their credit and seeking for credit repair professionals’ help. This means that this business can be very profitable in the state. When starting a credit repair business in South Carolina, it is important to learn about its rules and regulations first.


Here are most common questions and answers regarding credit repair laws in South Carolina.


Is credit repair legal in South Carolina?


Yes. Building a credit repair business in South Carolina is legal but you have to get a license permit before engaging in any credit counseling services.


How to get a credit repair company license in South Carolina?


You can send your business license application to the State’s Department of Consumers Affairs by going to their office or using their online licensing system.


How much is a surety bond cost in South Carolina?


According to South Carolina Consumer Protection Code, the surety bond for a credit repair business must be at least $25,000. It is required before a credit repair business can provide any credit services to protect consumers against fraud.
A surety bond must be acquired from a surety company that is authorized by the credit repair laws of South Carolina. It must be maintained for three years after revocation, denial, or failure to renew the license.


What are the Prohibited Acts under South Carolina Credit Repair Laws?


A credit repair business in South Carolina should not do the following.

  1.  Waive the right of a consumer
  2. Charge a consumer for entering into a debt management plan with the services provider to revoke the contract.
  3. Make false, misleading, or deceptive representation of rates, terms, and conditions of credit repair services.
  4. Ask a consumer to purchase a stock, property, commodity, or service as part of the agreement.
  5. Accept payment or other consideration for referring a consumer to a creditor.
  6. Disclosing information to third parties regarding the amounts owed by a consumer.
  7. Make a fraudulent, deceptive, or misleading representation to: obtain information about a consumer, to solicit business with a consumer, or otherwise in connection with providing services for or on behalf of any consumer.
  8. Use unconscionable means to obtain a contract with a consumer or collect or attempt to collect a debt owed to the seller.
  9. Engage in any unfair or deceptive act.
  10. Collect a payment from a consumer before the completeness of the services to be done.
  11. Operate another business at the licensed location without authorization from the department.
  12. Execute a contract or agreement to be signed by the consumer unless the contract or agreement is filled in and finished.
  13. Make loans to debtors.
  14. Issue credit cards or act as an agent in procuring customers for a credit card company or a financial institution.
  15. Represent that you are authorized or competent to give or perform legal services unless supervised by an attorney as required by South Carolina credit repair law.


** Disclaimer:

We aim to provide the most accurate information regarding Florida’s credit repair laws under Florida Statute. However, please note that the laws may change anytime. We recommend doing more research for further information. Or consulting a lawyer about credit repair services law.


Abiding with credit repair laws in South Carolina is an important part of your success. Once you get all the licensing requirements to start a credit repair business in South Carolina, the next step will be finding the right credit repair software for your business to help you manage your clients easier and run your business smoothly.


Now that you understand credit repair laws in South Carolina including the requirements to start a credit repair business in the state, it is time to learn more about how to run the business. Use the links below to read more articles.