What credit repair can and can’t do
A credit repair company is a middleman. It reviews your credit reports from Equifax, Experian and TransUnion, then sends dispute letters to the bureaus (and sometimes to creditors) asking them to investigate items it flags. The CFPB explains that these companies rely on the rule that credit reporting companies must investigate disputes and respond, generally within 30 days.
That process works for genuine errors: an account that isn’t yours, a late payment you actually made on time, a debt listed twice, or a balance that is wrong. If the information can’t be verified, it must be corrected or deleted.
What it cannot do, according to the CFPB:
- Remove accurate information. Accurate late payments, collections and charge-offs can stay on your report for about seven years. A Chapter 7 bankruptcy can stay up to 10 years.
- Guarantee a score increase. No company can legally promise a specific result.
- Make deleted accurate items stay gone. If an accurate item is removed because a creditor was slow to respond, it can reappear once the creditor verifies it.
The CFPB also warns that bureaus may reject “frivolous” disputes sent as form letters, and that monthly subscription fees often pay for repeated disputes that don’t change anything. There is no shortcut to a strong credit history. For how the scores themselves are calculated, see how credit scores work.
Your rights under the Credit Repair Organizations Act
The Credit Repair Organizations Act (CROA) is the federal law that governs these companies. Its main protections are short and worth knowing before you talk to any salesperson.
| Rule | What the law says |
|---|---|
| No payment in advance | A credit repair organization may not charge or receive money for any service before that service is fully performed. |
| Written contract | The contract must list the total amount of all payments, a full description of services, any guarantees, an estimate of how long the work will take, and the company’s name and principal business address. |
| 3-day right to cancel | You can cancel without penalty or obligation before midnight of the third business day after you sign. A bold-face notice of this right must appear near the signature line, and no services can begin during that window. |
| No false statements | A company may not make, or advise you to make, false or misleading statements about your creditworthiness to bureaus or creditors. |
| No identity tricks | A company may not help you alter your identification to hide accurate, current negative information. |
Source: 15 U.S.C. 1679b, 1679d and 1679e via govinfo.gov, checked October 2026.
A second rule applies if the company sells by phone. Under the FTC’s Telemarketing Sales Rule, a telemarketed credit repair company cannot collect fees until it shows you a credit report demonstrating the promised results, and that report must be issued at least six months after the results were achieved.
The biggest enforcement case: Lexington Law and CreditRepair.com
The CFPB sued Progrexion (which ran CreditRepair.com) and the affiliated Lexington Law firm in 2019. In March 2023 a federal court ruled that the companies violated the Telemarketing Sales Rule by collecting illegal advance fees for telemarketed credit repair from more than 4 million customers.
- The August 2023 judgment included about $2.66 billion in consumer redress, civil penalties of $45.8 million against Progrexion and $18.4 million against Lexington Law, and a 10-year ban on telemarketed credit repair.
- The companies filed for Chapter 11 bankruptcy, shut down about 80% of their business and laid off about 900 employees.
- Because the bankrupt companies could not pay the redress directly, the CFPB announced in December 2024 that it was returning $1.8 billion to 4.3 million harmed consumers from its victims relief fund, which is financed by civil penalties paid by other lawbreakers.
- Lexington Law said in September 2023 that it would keep operating after restructuring. If you see either brand advertised, the same contract and fee-timing rules apply.
The lesson for consumers is about fee timing. Even a large, heavily advertised company was found to have charged illegally. Check exactly when and for what you will be billed.
Do it yourself for free
Everything a credit repair company sends to the bureaus, you can send yourself at no cost. Here is the process.
- Get all three reports. Equifax, Experian and TransUnion now offer free weekly reports at AnnualCreditReport.com, a change the bureaus made permanent in September 2023. You can also call (877) 322-8228 or mail a request to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The reports don’t include scores.
- Mark every error. Look for accounts you don’t recognize, wrong balances, wrong dates of delinquency, duplicate collections and payments marked late that weren’t.
- Dispute with each bureau that shows the error. Use the bureau’s online dispute center or a letter. Explain the specific error and attach copies (not originals) of proof such as bank statements or payoff letters.
- Dispute with the creditor too. The company that reported the information also has to investigate.
- Track the 30-day window and follow up. If the result is wrong, you can submit a complaint to the CFPB.
The CFPB also notes you can get extra free reports if you were denied credit or a job, placed a fraud alert, are unemployed and job hunting within 60 days, are on public assistance, or live in a state that requires it.
For accurate negative items, time and new on-time history are what help. Tools such as a secured credit card or a credit builder loan add positive payment history; credit repair does not.
What named companies charge
If you still want to pay someone to manage disputes, compare total cost, not just the monthly price. The table shows published pricing for six companies CNBC Select reviewed in October 2026. We have not tested these services and are not ranking them.
| Company | Setup / first-work fee | Monthly fee | Guarantee (as advertised) |
|---|---|---|---|
| Credit Firm | None | $49.99 ($89.99 couples) | None |
| Sky Blue Credit Repair | $79–$119 | $79–$119 ($119–$179 couples) | 90-day money-back if no progress |
| Credit Saint | $99–$195 | $79.99–$139.99 | Refund if nothing removed in 90 days; not offered in South Carolina |
| The Credit People | $19 | $99–$119, or $599 flat for six months | Satisfaction guarantee may refund fees |
| The Credit Pros | $119–$149 | $69–$149 | No refund; 60-day guarantee extends service |
| Safeport Law | $89 or $129 | $89.99–$129.99 | 90-day money-back tied to score progress |
Source: CNBC Select, “Best credit repair companies,” updated October 8, 2026. Prices change; confirm on each company’s site and in your contract.
Six-month cost, worked out
Many people stay enrolled for several months. Assuming one setup or first-work fee plus six monthly payments:
| Plan | Calculation | Six-month total |
|---|---|---|
| Credit Firm (individual) | $0 + 6 × $49.99 | $299.94 |
| Sky Blue basic | $79 + 6 × $79 | $553.00 |
| Credit Saint Credit Polish | $99 + 6 × $79.99 | $578.94 |
| The Credit People flat fee | $599 flat | $599.00 |
| The Credit Pros repair plan | $129 + 6 × $129 | $903.00 |
| Credit Saint Clean Slate | $195 + 6 × $139.99 | $1,034.94 |
Source: our arithmetic using CNBC Select pricing (October 2026). Actual totals depend on how long you stay enrolled.
Compare those totals with the cost of disputing yourself: postage, or nothing at all if you dispute online.
Red flags that mean walk away
The FTC’s December 2025 consumer alert and the CFPB list these warning signs. Any one of them is reason to stop.
- They want payment before doing any work.
- They tell you not to contact the credit bureaus yourself.
- They tell you to dispute information you know is accurate.
- They suggest you lie on a loan or credit application.
- They tell you to file an identity theft report for debts that are yours. Knowingly filing a false report is a crime that can bring a fine, prison time or both.
- They promise to create a “new” credit identity.
- They promise to remove accurate, current negative items or guarantee a score jump.
- They don’t explain your legal rights, or there is no written contract with a 3-day cancellation notice.
How to decide whether to pay anyone
- Few or no errors on your reports? A paid service has little to work with. Focus on on-time payments and lower card balances. Our guide to paying off credit card debt covers the utilization side.
- Many genuine errors, or identity theft? Dispute them yourself first. If you want help, compare the total contract cost and confirm fees are charged only after work is done.
- The real problem is unaffordable debt? Credit repair won’t fix that. A nonprofit credit counselor accredited by the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America can review your budget and options.
Before you sign, ask for the contract in writing, read the total-payments figure, check the CFPB complaint database and your state attorney general for complaints, and note the date your three-day cancellation window ends.
Frequently asked questions
Is credit repair legal?
Yes. Credit repair companies are legal, but the Credit Repair Organizations Act requires a written contract, a 3-business-day right to cancel and no payment before services are fully performed. Promising to remove accurate information or create a new credit identity is not legal.
Can a credit repair company remove accurate negative items?
No. The CFPB says no one can legally remove accurate, current information from your credit report. Accurate negative items generally stay about seven years, and a Chapter 7 bankruptcy up to 10 years.
How much does credit repair cost?
Published pricing for six companies reviewed by CNBC Select in October 2026 ranged from about $50 to $140 a month, plus setup or first-work fees of $0 to $195. Six months can cost roughly $300 to over $1,000.
Can I dispute credit report errors myself?
Yes, for free. Get your reports at AnnualCreditReport.com, then dispute each error online or by letter with the bureau reporting it and with the creditor. The bureau generally has 30 days to investigate.
What happened with Lexington Law and CreditRepair.com?
A federal court ruled in 2023 that they collected illegal advance fees for telemarketed credit repair. The CFPB obtained a judgment including a 10-year telemarketing ban and in December 2024 announced $1.8 billion in refunds to 4.3 million consumers.
How do I cancel a credit repair contract?
You can cancel without penalty before midnight of the third business day after signing. Send written notice using the cancellation form the company must attach, and keep a copy.
Where can I complain about a credit repair company?
You can submit a complaint to the Consumer Financial Protection Bureau, report it to the Federal Trade Commission, and contact your state attorney general.
Sources
- govinfo.gov – 15 U.S.C. 1679b, Prohibited practices (Credit Repair Organizations Act)
- govinfo.gov – 15 U.S.C. 1679d, Credit repair organizations contracts
- CFPB – Difference between credit counseling, debt settlement, debt consolidation and credit repair
- CFPB – How do I get a free copy of my credit reports?
- FTC Consumer Alert – Looking to fix your credit? An illegal credit repair scam isn't the answer (Dec 2025)
- Experian plc – Bureaus support ongoing availability of free weekly credit reports (Sept 2023)
- Bankrate – CFPB reaches settlement against credit repair entities
- CUInsight (CFPB press release) – CFPB announces return of $1.8 billion to 4.3 million Americans harmed in credit repair scheme
- CNBC Select – Best credit repair companies
- NerdWallet – How to use AnnualCreditReport.com
- NerdWallet – How to find debt relief
- Business Wire – Lexington Law continues after a firm restructure (Sept 2023)
Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.