11 Best Credit Repair Companies of 2022

What Is the Best Company to Use to Fix Your Credit?

Credit Saint is one of the most aggressive credit repair companies, which is why it tops our list. Their Clean Slate package offers unlimited disputes, inquiry targeting, credit score tracking, and creditor interventions. Among other perks. Moreover, Credit Saint holds a top notch rating with the Better Business Bureau, and has favorable reviews from previous customers who used the service.

Why Do People Use Credit Repair Companies?

Unfortunately, some people use (shady) credit repair companies because they promise to knock legitimate-but-damaging information off your credit report. Besides being ineffective, it’s also illegal.

On the less shady side, people use legitimate credit repair companies because they’re uncomfortable navigating the credit reporting system alone. Others may be too busy or unwilling to deal with the hassle of collecting evidence, contacting creditors, and disputing reports.

How Does Credit Repair Work?

When a false or inaccurate statement hits your credit report – say, a bankruptcy you didn’t file – it mars your report and drags down your credit score. Credit repair involves disputing inaccuracies and unverifiable information to remove them from your report. In doing so, you’ll clear your report and your good name in one go.

What Do Credit Repair Companies Do?

Legally, credit repair companies can’t do anything that you can’t do yourself for free. Effectively, that means credit repair companies provide convenience and expertise.

Aside from communicating with credit bureaus (TransUnion, Equifax, and Experian), creditors, and financial institutions to gather information and dispute claims, they may also:

• Request that debtors validate your debts
• Issue cease and desist letters
• Offer identity theft protection programs
• Provide credit report and score monitoring and updates
• Write letters of recommendation for loan applications
• Escalate problems within the bureaus or to the FTC or state attorney general

Many reputable services also help you build positive credit history and address the impacts of legitimate negative marks.

>> More: Is Credit Repair Legal?

How Do Credit Repair Companies Work?

Consultation Services

Most companies start with a consultation (often for free) to explain the process, pull your credit reports, and determine if you’re a good credit repair candidate.

Written Consent for Limited Power of Attorney

Once you sign on, the company will ask for a written contract granting them power of attorney. This provides them the legal right to act on your behalf.

Challenge Items on Your Credit Report

After obtaining consent, the company will begin challenging inaccuracies on your report by filing a dispute with the credit bureaus. Once notified, credit reporting agencies have 30 days to investigate or mark your complaint as “frivolous.” If they confirm any errors, they’ll remove them from your report. Here are some common items credit repair companies will help you challenge on your credit report:

• Negative Items
• Collection Account
• Judgement
• Late Payment
• Charge Offs
• Repossession
• Hard Inquiries
• Bankruptcies

Writing Letters on Your Behalf

Aside from credit bureau disputes, many credit repair companies contact your creditors directly. Letter-writing services can include:

• Debt validation letters to request proof that your debt is valid and within the statute of limitations. (If not, it will be removed from your report.)
• Goodwill letters asking creditors to remove negative items reported to the agencies.
• Cease and desist letters requesting that debt collectors stop contacting you regarding your debt. (Note that if creditors believe you’re trying to wiggle out of legitimate debts, they may double down on collection efforts – so don’t take this step lightly!)

Routine Progress Reports

Reputable credit repair companies track your disputes’ progress and provide frequent updates, often through an automated dashboard. They may also request updated credit reports every few weeks to review potential changes.

Some Offer Credit Monitoring and Identity Theft Protection

Credit repair companies may also offer credit monitoring and identity theft protection in their packages. While some charge extra for these services, the best credit repair companies include credit monitoring in their base package.

Provide Educational Resources to Customers

Many credit repair agencies run blogs to educate consumers on their rights and various topics in the personal finance space.

Credit Repair Organizations Act (CROA) Compliant

All bona fide credit repair agencies comply with the Credit Repair Organizations Act. The CROA establishes clear guidelines for companies, including:

• Issuing a written contract outlining services in detail
• Providing a rough timeframe to start seeing results
• Refraining from guaranteeing results
• The total cost of their services

Additionally, under CROA, you cannot be bound to any waiver of these rights. You also have the right to walk away from a contract penalty-free within 3 days of signing.

Understanding Credit Repair Companies and Credit Repair

#1. Repairing Your Credit Takes Time

Once you remove errors from your credit report, the effects may take anywhere from three months to a year to fully materialize. Usually, you’ll start seeing impacts within 6 months.

#2. You Still Have to Do Some Work

Credit bureaus often require proof of your claims, such as letters from your creditors showing that a debt doesn’t belong to you or was paid on time. Don’t be surprised if you have to do a little legwork in providing information or gathering proof.

#3. Credit Repair Companies Cannot Charge You in Advance for their Services

Credit repair companies aren’t allowed to charge you until after they’ve provided services. If a credit repair company doesn’t succeed in removing marks from your reports, you may receive your money back.

#5. But There Are Setup Fees

Though they can’t charge you for services upfront, many credit repair companies charge a “setup” or “first-work” fee to establish your account, pull your credit report, and create a strategy. (The CFPB continues to question the legality of such fees in several lawsuits.)

#4. Not All Negative Items on Your Credit Report Can Be Removed

Unfortunately, some information on your credit report is there to stay for a while. Legitimate late or missed payments, repossessions, bankruptcies, debt collections, and more typically remain for at least 7 years.

#6. Credit Repair Companies Cannot Make Promises or Recommend That You Change Your Social Security Number

Shady credit repair companies may engage in illicit practices such as guaranteeing results or committing fraud on your behalf. Two common tactics involve issuing a new credit identity or Social Security Number. If a company steers you in these directions, run the other way.

#7. Trustworthy Credit Repair Companies Will Provide You a Copy of the Consumer Credit File Rights

Under the CROA, legitimate credit repair companies must provide a written contract outlining their services before receiving payment. They must also provide a document of your rights to order credit reports and dispute inaccuracies yourself for free.

How to Compare the Best Credit Repair Companies

#1. Beware of Scams and Fraudulent Practices

The credit repair industry is rife with controversies, scams, and questionable (or downright illegal) practices. Avoid companies that:

• Ask for upfront payment before doing work
• Avoid or refuse to explain your rights
• Request that you waive your rights
• Guarantee results
• Promise to remove legitimate information
• Ask you to contest legitimate information
• Ask you to lie to the bureaus
• Tell you not to contact the bureaus or visit AnnualCreditReport.com
• Promise a new credit identity
• Issue you a new Social Security Number
• Don’t provide a thorough contract that includes their name, address, fees, services, timeframe, or notification of your rights

#2. Understand the Service Packages and Fees

Before signing on with any company, you should understand your contract, including the service package, fee structure, and various upgrades and downgrades.

#3. Find a Company that Offers Money-Back Guarantee

Not every credit repair company offers a moneyback guarantee. If they don’t, keep walking – you don’t want to be on the hook if they scam you or fail to fix legitimate credit issues.

#4. See if Discounts Are Being Offered

Many services offer military, senior, and couples’ discounts. These deals can shave a few bucks off your credit repair journey.

#5. Check If Credit Monitoring or Identity Theft Protection is Included

Some credit repair companies offer extra tools like credit monitoring, identity theft protection, and even budgeting software in their packages. Bundling these services can save you money on your financial wellness journey. The best ones are the packages that build the services into the price, rather than the other way around.

#6. Compare Turnaround Times

Legally, companies have to provide their turnaround times to start seeing results. Generally, schedules range from 30-90 days, depending on the agency and your credit needs.

#7. Read Previous Customer Reviews

Before signing up, scout out BBB, Yelp, TrustPilot, and even Google Reviews to see how other customers fared with a particular company. But remember, customers tend to post reviews when they’re unhappy, not satisfied. Don’t be afraid to snoop around and find out if the reviews are legitimate or simply a grumpy customer.

#8. Check Regulatory Agencies

The credit repair industry must abide by multiple layers of consumer protection laws. Check with the Federal Trade Commission (FTC) and CFPB to see if a company is known for fraudulent or predatory practices.

Free Credit Counseling and Government Resources Available

Free and nonprofit counseling networks offer reduced or no-cost credit and budgeting services for those in need. We’ve plucked out a few that provide affordable or free resources to get your finances (and credit score) back on track. You can browse the Justice Department’s state-by-state database of approved credit counseling agencies to vet these and other candidates.

#1. National Credit Counseling Foundation (NFCC)

The NFCC is a nonprofit financial counseling organization that partners with nonprofit member agencies and NFCC Certified Financial Counselors. They can help you get a handle on your debt, establish a budget, and build a personalized plan. Member agencies offer a variety of free and paid services. Though those that cost are generally quite cheap.

#2. American Consumer Credit Counseling (ACCC)

ACCC is a Massachusetts-based agency that provides nationwide phone-based counseling. Free services include credit and budgeting consults, while debt management plans require a one-time $39 fee plus $7 per month. ACCC offers waivers for those experiencing financial hardship.

#3. Credit.org

Credit.org is a nonprofit that provides consumers with free or low-cost credit counseling, financial education, and debt relief. They offer a comprehensive online hub of personal finance education, resources, and even classes.

#4. Financial Counseling Association of America (FCAA)

The FCAA is a network of both nonprofit and for-profit credit counselors across all 50 states. Similar to the NFCC, you can call, go online, or visit in-person for a variety of personal finance and debt-related needs.

Differences Between Debt Settlement, Credit Repair, And Credit Counseling

Credit Repair and Covid-19

During Covid-19, the government – and many in the financial industry – extended their hand in aid to ensure consumers aren’t taken advantage of. Provisions include:

• Free weekly credit reports from each bureau throughout 2022
• Deferred federal student loan interest and payments
• CARES Act protections to ensure forbearance on federally backed loans doesn’t show up on your credit report
• Temporary suspensions of credit line payments (loans, mortgages, and even credit cards) based on individual lender agreements

Alternatives to Credit Repair

#1. National Credit Counseling Foundation

If you’re struggling to pay your debts, the NFCC provides resources to help you get back to the budgeting basics. Counselors are also trained to address serious issues involving your mortgage, credit cards, and even student loan debt.

#2. Debt Settlement

If you’re in debt and need to get out, debt settlements can help. A debt settlement lets you “settle” your debt for less than its full value. This involves making one large lump-sum payment to your creditor(s), which can shave anywhere from 10-50% off your bill.

You can contact your creditors to request a settlement or hire a debt settlement company to do it for you. But beware: the IRS considers forgiven debt to be taxable. (Unless you can prove that you’re insolvent.)

#3. Debt Consolidation

Debt consolidation rolls multiple debts – particularly higher-interest debts – into one payment at one interest rate. Bundling your monthly payments (often at a lower interest rate) makes it easier to organize your finances and afford your bills. If you need some breathing room in your budget, you may also request a longer repayment schedule, though you may pay more interest over time.

#4. Credit Repair Software

Credit repair software does the work of a credit repair agency without the human intervention. (And sometimes even cheaper.) There are three basic types:

• Credit score trackers and monitors oversee your credit reports and detect potentially harmful activities, such as delinquent payments, credit pulls, and even identity theft.
• Credit repair cleaning kits help you fix credit mistakes by educating you on credit scores, identifying fraud, and submitting dispute letters.
• Credit score simulators show you the credit impact of various loans, investments, and purchases before you make them.

How Much Does Credit Repair Cost?

Credit repair can run you anywhere from $20 to $150 per month, not including setup fees that can range from $20 to $200. You can also repair your credit for free by disputing inaccuracies by yourself.

>> More: How Much Credit Repair Costs and Fees You Need to Know About

Does Credit Repair Work?

There are no statistics that prove the effectiveness of credit repair companies over disputing inquiries yourself. However, it’s true that removing negative items from your report, no matter the mechanism, does improve your credit over time.

Who Regulates the Credit Repair Industry?

The credit repair industry is regulated by the FTC and governed by the Credit Repair Organizations Act (CROA). The CFPB is also known for filing lawsuits against shady credit repair companies.

How Long Does Credit Repair Take?

Credit repair can take 3-12 months to see significant impacts, depending on how much inaccurate information your report contains.

Are There Legitimate Credit Repair Companies?

Yes, there are legit credit repair companies. As a consumer, you must do your research beforehand to ensure you avoid a credit repair scam. A legit credit repair company will not charge you a massive upfront fee and won’t promise you results.

Legit credit repair companies possess:

• Valuable Industry Experience
• BBB Accreditation
• Transparent Pricing
• Proven Results
• Helpful Customer Service

The rampant rise of credit repair scams is the main reason why we created a list of the best credit repair companies. It is not fair for consumers to have the wrong information

How Can You Avoid a Credit Repair Scam? 

The best way to avoid scams is to know your rights, do your research, and work only with trusted companies. Listen to your gut and don’t give your information to companies that don’t give straight answers, provide misleading information, or violate the CROA in any way. (And RUN from companies that try to issue you a new identity – it can only end poorly!)

Can You Repair Credit Yourself?         

Credit repair companies help you dispute items and even take legal action. But the Fair Credit Reporting Act (FRCA) gives you the right to fix credit issues yourself for free. When you file a free dispute with the credit bureau(s) in question, they have 30 days to investigate and delete erroneous information from your report.

Is It Worth Paying Someone to Fix Your Credit?

As always, that depends on your situation. If you’re short on time, patience, or knowledge, or simply want a second set of eyes on your credit report, paying a reputable credit repair agency can provide thorough results and peace of mind. But if you have the time and inclination, you can save a few bucks and repair your credit yourself.

Can a Credit Repair Company Remove Debt?

Simply put…no. Credit repair companies generally don’t negotiate debts, and they aren’t allowed to remove or even dispute negative-but-accurate marks from your reports. They’re just there to help your credit get back on track if it’s knocked off course by false information.

Quick Recap: Best Credit Repair Companies 

• Credit Saint: Best Overall Credit Repair Company
• Sky Blue: Runner Up, Best Credit Repair Company for Value + Simplicity
• Lexington Law: Best for Legal Expertise
• The Credit People: Best Moneyback Guarantee
• Creditrepair.com: Best for Simplicity
• Creditfirm.net: Best Affordable Credit Repair Company
• The Credit Pros: Best for Technology
• CreditGlory: Best for Identity Theft
• Ovation Credit: Best Cancellation Policy
• Credit Versio: Best for Affordability
• Credit Assistance Network: Best Overall Credit Repair Company

Bottom Line: Best Credit Repair Companies

Think of credit repair companies as a convenience to fulfill an unfortunate need. Credit mistakes happen all the time – but when a bureau gets your report wrong, it’s up to you to find and dispute the mistakes. While you can do it for free by yourself, if you want a hand on your credit recovery journey, a credit repair company may provide the resources and peace of mind you need.

Methodology: How We Reviewed the Best Credit Repair Companies

Our team of credit experts puts hours into curating the list of the best credit repair companies. We analyzed each company based on their BBB Accreditation, credit repair service offerings, industry experience, features, benefits, price, reputation, and customer service. Simplemoneylyfe relies on credible sources, rigorous product testing, and first-hand experience to support our rankings, analysis, and work. These sources include government reports, trusted government databases, white papers, academic institutions, expert interviews, and authoritative financial publications. Read more about our rating methodologies for credit repair companies and editorial guidelines.