How much is the credit repair industry worth? 2024

Author picture
Author picture
mobile phone screen showing credit score

The term credit repair broadly refers to improving an individual's credit score. Often, this involves contacting credit bureaus to dispute damaging, inaccurate information on credit reports. For a fee, credit repair companies offer to handle this process for consumers, including research and disputes. However, these companies don't provide any services that an individual couldn't do for free themselves.

The U.S. credit repair industry, valued at $6.6 billion in 2023, is countercyclical to the economy – meaning that these companies thrive when more Americans are financially struggling. Credit repair companies operate under a specific set of laws protecting consumers which are important to understand, as scams have become common in the industry.

Key insights

In 2023, the estimated market value of the credit repair industry was $6.6 billion.

Jump to insight

That year, the industry grew by a CAGR of 2.5%, and since 2018 increased by an average of 2.8% per year.

Jump to insight

The value of the credit repair industry dipped during the COVID-19 pandemic, but quickly rebounded.

Jump to insight

Credit repair industry overview and market value

In 2023, the U.S. credit repair industry pulled in an estimated revenue of $6.6 billion, a 2.5% CAGR increase from the year prior, and since 2018, grew by an average of 2.8% per year. An estimated 51,822 workers were employed by the industry in 2023, a 3.5% decrease since 2018. By comparison, in 2023, the entire U.S. workforce was estimated at 161.02 million.

How does credit repair work?

Consumers can choose to take steps to repair their credit themselves or hire a company. If you use a credit repair company, they’ll typically take the following steps to remove negative items from their report:

  1. Access credit reports: Credit repair companies will obtain a customer’s credit report from their credit bureau.
  2. Review credit reports: The companies review a customer’s credit report, looking for inaccurate events harming their credit score. Late payments, closing credit card accounts, and “hard inquiries” made when requesting credit are some examples of these events.
  3. Dispute inaccurate information: The companies contact the customer’s credit bureau and creditors to dispute inaccurate events and debts.
  4. Advise on best practices: Some credit repair companies may offer guidance on how a customer can proactively improve their credit score and avoid bad credit in the first place.

Credit repair scam statistics

The credit repair industry is rampant with scammers preying on vulnerable borrowers. In 2022, 51% of complaints filed with the Consumer Financial Protection Bureau (CFPB) against credit repair companies were categorized as "fraud or scam" reports.

That year, the Federal Trade Commission filed a lawsuit against one credit repair company that scammed customers out of $213 million while selling bogus services and recruiting those same customers into a pyramid scheme.

Another 2022 lawsuit filed by the Department of Justice accused a different credit repair company of illegally charging customers upwards of $1,500 up-front based on misleading and false claims. Not only is it illegal for credit repair companies to charge an up-front fee, but legitimate flat fees for credit repair are typically around $400, while monthly fees usually range between $60 and $150 per month.

Those looking to improve their credit have limited options at their disposal. Credit repair companies cannot provide a magic bullet when an individual’s credit score is lowered for legitimate reasons. Credible events that lower credit scores, such as late credit card payments, can remain on a credit report for seven and bankruptcy information for 10 years, leaving many individuals with two options for an improved credit score: avoiding these events or waiting.


How large is the credit repair industry?

In 2023, the U.S. credit repair industry had a rough market value of $6.6 billion and employed an estimated 51,822 workers.

How has the size of the credit repair industry changed over time?

The U.S. credit repair industry is typically countercyclical with the larger U.S. economy – meaning that the industry goes up when the economy goes down and vice versa. Therefore, the industry fluctuates over time as economic conditions change.

How prevalent are scams in the credit repair industry?

In 2022, 51% of the complaints filed against credit repair companies with the CFPB were categorized as “fraud or scam” reports.


  1. Lee Huffman. “What you should know about credit repair companies.” ConsumerAffairs. Evaluated Mar. 18, 2024.Link Here
  2. Consumer Financial Protection Bureau. “Don’t Be Misled by Companies Offering Paid Credit Repair Services.” Evaluated Mar. 18, 2024.Link Here
  3. IBISWorld. “Credit Repair Services in the US — Market Size (2004–2029).” Evaluated Mar. 18, 2024.Link Here
  4. IBISWorld. “Credit Repair Services in the US — Market Size, Industry Analysis, Trends and Forecasts (2024-2029).” Evaluated Mar. 18, 2024.Link Here
  5. Statista. “Distribution of credit repair complaints filed with Consumer Financial Protection Bureau in the United States in 2022.” Evaluated Mar. 18, 2024.Link Here
  6. Seena Gressin. “FTC says credit repair company sold sham services and a pyramid scheme.” Federal Trade Commission (FTC). Evaluated Mar. 18, 2024.Link Here
  7. Seena Gressin. “FTC says credit repair operation fleeced its clients.” Federal Trade Commission (FTC). Evaluated Mar. 18, 2024.Link Here
  8. Federal Trade Commission (FTC). “How To Get Out of Debt.” Evaluated Mar. 18, 2024.Link Here
  9. Statista. “Total employment and the unemployment rate in the United States from 1980 to 2022, with projections until 2028.” Evaluated Mar. 18, 2024.Link Here


Back to ConsumerAffairs

Journal of Consumer Research