Best Credit Repair Companies

What is credit repair?

Credit repair is the process of disputing negative marks or inaccurate information on credit reports to get them removed. Sometimes called credit restoration, it involves challenging negative claims on your credit reports with the credit reporting bureaus (Experian, TransUnion and Equifax).

Doing credit repair yourself is a lot of legwork, especially if you’re struggling with identity theft or have multiple marks to dispute. We suggest hiring a credit repair company if you have multiple and varied disputes.

The most common derogatory marks targeted during credit repair include:

• Fraudulent accounts
• Delinquent accounts
• Accounts in collections
• Missing accounts
• Data management errors
• Incorrect personal information
• Judgments
• Expired debts
• Unverified or invalidated debts
• Foreclosure
• Repossessions
• Late payments
• Hard inquiries
• Charge-offs
• Bankruptcy

For many people, credit repair is essential to accessing personal loans and credit cards. With an improved score, you increase your chances of qualifying for loans — and for better interest rates.

How does credit repair work?

Many credit repair companies work with you to remove or appeal questionable and problematic items on your credit history. Sometimes, inaccurate marks on your credit report are from credit bureau errors or faulty creditor reports. Common errors that a credit repair company looks for include incorrect inquiries and duplicate, inaccurate or missing accounts.

Removing just a single negative item on your credit report can increase your credit score by more than 100 points. Note, though, that it can take anywhere from 30 days to one year to repair your credit and see your score increase.

Credit repair strategies include sending goodwill adjustments to your creditor for late payments and cease-and-desist letters to debt collectors. In general, credit repair companies will follow this process:

1. Pull your credit reports from all three credit reporting bureaus
2. Analyze your credit reports for possible errors or mistakes
3. Dispute errors on your behalf
4. Confirm removal of negative marks if the credit reporting company finds the report is inaccurate

Credit bureaus must send a notice of any corrections made to your report. Sometimes, a deleted dispute can reappear on your credit reports if the lender proves its claim is valid. If you find a derogatory mark reinserted on your credit reports, you can dispute it again.

» LEARN MORE: What is a negative credit history?

How much does credit repair cost?

The cost of credit repair services can vary widely depending on the company and the specific services you need. Generally, you should expect to pay a setup fee ranging from $70 to $200. This initial fee typically covers onboarding, pulling your credit reports and creating a personalized dispute strategy. After the setup process, monthly service fees usually range from $70 to $149.

Some companies offer discounted flat rates or package deals if you commit to multiple months of service. Others may allow you to pause your service without penalty if you need to take a break due to financial constraints. Additionally, some providers offer promotional discounts for veterans, students or first-time clients.

It's important to carefully review the pricing structure and understand what services are included before signing a contract. Watch for potential hidden fees and make sure the company complies with regulations under the Credit Repair Organizations Act (CROA), which prohibits charging fees before any service is performed.

While hiring a credit repair company is an investment, the potential benefits of an improved credit score can outweigh the initial costs if it helps you qualify for better loan terms and lower interest rates.

How to find the best credit repair company

A credit repair company can help your credit score, but not all companies are the same. It is essential to work with legitimate companies that improve your credit each month.

Consider these steps to find the best credit repair company for you:

Pros and cons of credit repair companies

How can I repair my credit on my own?

While many people like having a team of professionals to help fix their credit, you can repair your own credit by doing the following:

1. Keep an eye on your credit reports: Obtain copies of your credit report from all three credit bureaus (Experian, Equifax and TransUnion) at least once a year. Regularly review your reports for errors, fraudulent accounts or inaccuracies.
2. Dispute errors you find: Use the dispute process provided by each credit bureau to challenge inaccuracies. Clearly explain the error, provide supporting documents and track your disputes for updates.
3. Pay off outstanding debts: Focus on clearing overdue or delinquent accounts first. Contact creditors to set up payment plans or negotiate settlements if necessary.
4. Improve your financial habits: Pay your bills on time, avoid taking on unnecessary debt and work to keep your credit utilization below 30%. Building a positive credit history takes time and discipline.

Federal regulation for credit repair

Federal laws make it illegal for credit repair companies to make false claims. The credit repair industry is also regulated by state governments. Most states require credit repair agencies to be bonded and insured. Some states also require them to have a licensed attorney on staff.

If you believe a credit reporting agency or one of your creditors has violated the Fair Credit Reporting Act (FCRA), you should submit a consumer report to the Consumer Financial Protection Bureau.

How to avoid credit repair scams

There are unfortunately a lot of credit repair scams that many people fall victim to. It’s essential to understand the warning signs of a fraudulent company so you don’t lose money or end up further damaging your credit.

Here are some key red flags to watch out for:

• Large upfront payments or fees
• Guarantees they’ll improve your credit or remove all negative items from your credit report
• Doesn’t provide a written contract
• Advice to dispute accurate information
• Failure to explain your rights (such as your ability to dispute errors on your own, cancel services within three days of signing or review your credit report for free)
• Pressure to sign a contract

Credit repair vs. credit counseling

Credit repair and credit counseling are two different services that help consumers manage their credit, but they serve distinct purposes.

Credit repair services focus on disputing inaccurate or negative items on your credit report. This option is best if you believe your credit report contains errors or if you're dealing with the aftermath of identity theft. Credit repair companies can help speed up the process of removing negative items, potentially boosting your credit score.

Credit counseling, on the other hand, is more focused on financial education and debt management. Credit counselors often help consumers create budgets, manage debt, and negotiate with creditors. This service is ideal if you're struggling with managing debt, need help creating a financial plan, or want assistance with debt consolidation. Credit counseling agencies often offer free or low-cost services and may provide educational resources to help you develop healthier financial habits.

When to choose credit repair:

• If you have inaccurate or negative marks on your credit report
• When dealing with identity theft or fraudulent accounts
• If you need professional assistance with disputing errors  

When to choose credit counseling:

• If you're struggling with debt management
• When you need help creating a budget or financial plan
• If you're considering debt consolidation or negotiation with creditors  

To decide our top picks for buyers with different priorities, as well as our top overall credit repair company, we used a weighted scoring system that took into account both reviews about each company from ConsumerAffairs users and specific company features we researched.

We conducted sentence-by-sentence sentiment analysis of thousands of reviews on our site from Nov. 1, 2017, to Oct. 31, 2024, to identify the aspects people care about most — and which companies reviewers were happiest with for each of these aspects. For credit repair companies, these aspects included:

• Staff
• Customer service
• Price

We then carefully selected the most important features consumers should consider before choosing a credit repair provider and researched these at each company. For credit repair, these features included:

• Number of plans
• Setup fees
• Monthly fees
• Satisfaction guarantee

The company with the highest score in each category’s uniquely weighted formula was given the “Our pick for” designation. In some cases where a single company received the top score across multiple categories, the company with the second-highest score was named the winner.