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Credit repair companies promise to “fix your credit” — sometimes for $1,000-$3,000. Some deliver real value. Most do things you could do yourself for free. Here is how to tell the difference.
Explore an option
If you are reading this, you likely want a clear next step. Here is one worth knowing about.
What credit repair can legitimately do
- Identify inaccurate items on your credit report.
- Submit dispute letters to credit bureaus.
- Negotiate “pay-for-delete” with collection agencies.
- Track dispute progress and re-dispute after responses.
- Provide credit education and personalized strategy.
What credit repair CANNOT legally do
- Remove accurate negative information from your credit report.
- Create a “new” credit identity for you (this is illegal).
- Improve your score through “credit privacy numbers” or “EIN credit.”
- Guarantee specific score increases or timelines.
Red flags — likely scam
- Charges money before providing services (illegal under CROA).
- Promises specific score increases.
- Tells you to dispute accurate negative information.
- Asks for SSN or credit info upfront via unsecure means.
- Will not provide written contract.
Legitimate credit repair options
- The Credit People — established credit repair company. Cancel anytime.
DIY alternatives
- Dispute errors directly with bureaus (free at AnnualCreditReport.com).
- Negotiate pay-for-delete with collection agencies directly.
- Add positive accounts via secured cards and credit builder loans.
- Use Experian Boost (free) to add utility/streaming payments to credit.
Verdict
For most people, DIY credit repair (disputing errors, building positive accounts) accomplishes 80% of what paid services do. For complex situations (multiple collections, identity theft fallout, complicated disputes), legitimate credit repair like The Credit People can be worth the cost. Always verify CROA compliance before paying.
Reminder: Approval and terms vary by lender. Verify rates and fees before applying.
One more worth bookmarking
Whatever you choose above, this is a useful, no-cost companion tool for anyone working on their credit.