Best Credit Repair Companies of 2025
Best Credit Repair Companies Ratings
Tips for Comparing Credit Repair Companies
Consider these tips when comparing credit repair companies:
- Look out for potential scams. Credit repair companies typically have a bad reputation, right or wrong. So it’s crucial to look out for any potential red flags. These may include companies promising to remove negative items, avoiding explaining your rights or telling you not to contact credit reporting companies. You should also look into a company’s Better Business Bureau file and check to see if there are any complaints with the Consumer Financial Protection Bureau.
- Evaluate packages and fees. No two credit repair companies are identical. This means not only will they offer various packages, but they will also charge different fees. Some charge a monthly and setup fee while others charge only a monthly fee. If cost is a priority, be sure to evaluate and compare all packages and potential fees.
- Check to see if they include credit monitoring. When comparing different companies or packages within one company, be sure to check whether credit monitoring is included. Some companies include it at no additional cost; others may require you to upgrade to a higher-tier package to receive the service.
- Look for a money-back guarantee. If you want to have more confidence in your credit repair journey, look for a company that offers a money-back guarantee to hedge your bet.
- Review any potential discounts. Some credit repair companies offer discounts on setup or monthly fees, or both. For example, some companies on this list offer discounts for active military members, veterans and couples. Look for these deals if you want to save some money.
What Is Credit Repair?
Credit repair is when consumers work with companies that specialize in removing errors from credit reports with the intent to increase their credit score. Depending on the company someone works with, they can access a range of additional features, including free credit score updates, credit monitoring, writing cease and desist letters to debt collectors or even writing letters of recommendation to lenders you’re applying for a loan with.
It’s crucial to have a good credit score because lenders use it to help determine if you qualify for loans, mortgages and credit cards; landlords may also use it when reviewing a rental application.
How Does Credit Repair Work?
Credit repair starts with reviewing your credit report from the major credit bureaus—Equifax, Experian and TransUnion. Each report should be checked for errors, inaccuracies or outdated information that may negatively affect your credit score.
The next step is to dispute any errors with the credit bureaus and the creditors reporting the information. This can be done by mail, online or by using credit repair companies that specialize in handling these disputes.
Credit repair may also address legitimate negative items on the credit report, such as late payments or collections. This might include negotiating with creditors for payment arrangements, settling debts or writing goodwill letters to request the removal of negative information.
As inaccuracies are corrected and negative items are addressed, your credit score will gradually improve. A high credit score makes you attractive to lenders and helps you qualify for better interest rates and loan terms. However, it’s essential to be cautious of scams and to work with reputable professionals or organizations when undertaking credit repair efforts.
How Much Does Credit Repair Cost?
A subscription model is the most common credit repair pricing structure. Monthly fees may range from $60 to $200, depending on the package. Some companies also charge a setup fee, which can be the same price as a full-month subscription.
Improving your credit takes time. It’s a good idea to find out how long the company says it will take to help you, so you can budget in the monthly payments. For example, if your credit repair company estimates it will take six months to repair your credit and you have signed up for a package with a $100 monthly fee and $100 setup fee, after six months you would have paid $700. You could save money by doing this work yourself but it would require more of your time.
Choosing the Best Credit Repair Companies
Choosing the best credit repair company may come down to your goals and budget. While some people may prioritize the cost, others may want a company that offers unlimited dispute letters. Everyone’s needs are different, which is why it’s helpful to shop around.
That said, there are some steps you should take to ensure you’re working with a legitimate, reliable company.
- Research multiple companies and compare them. Look at the firms’ services, pricing, reputation and reviews.
- Verify the legitimacy of the companies you’re considering. Check their registration and ratings with the Better Business Bureau (BBB), or tk.
- Make sure you understand the pricing structure. Legitimate credit repair companies will not guarantee results, ask you to dispute charges on your credit report or charge large upfront payments.
Pros and Cons of Credit Repair Companies
| PROS | CONS |
|---|---|
|
Expertise with credit laws can lead to faster and more efficient credit repair
| Fees, subscriptions and other charges may be costly
|
| Communicates with creditors and credit bureaus on your behalf, saving you time and effort
| Due diligence is needed to avoid any firms making false promises and charging fees without delivering results
|
| May offer credit counseling, budgeting assistance and other related services | Even good companies can’t guarantee that your score will improve, or by how much
|
Does Credit Repair Work?
Credit repair companies can try to help you remove negative items from your credit report, but success is not guaranteed.
While many companies advertise how many negative entries they’ve had deleted, there are no reliable statistics to prove the effectiveness of credit repair companies.
Because you can do on your own everything a credit repair company can do, it’s often better to take the time to review your credit reports yourself and submit any disputes. Doing the work yourself is completely free, saving you hundreds of dollars that you would pay a credit repair company.
Methodology
We reviewed 13 popular credit repair companies based on 19 data points in the categories of stability, reputation and customer satisfaction, customer experience, services, and cost and fees. We chose the best companies based on the weighting assigned to each category:
- Cost and fees: 45%
- Packages: 30%
- Customer experience: 10%
- Reputation and customer satisfaction: 10%
- Stability: 5%
Within each major category, we also considered several characteristics, including years in business, customer reviews and online resources the companies provide. We also looked at service packages offered, fee structure, money-back guarantees, discounts and cancellation policies.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
Frequently Asked Questions (FAQs)
How can I fix my credit myself?
While a credit repair company can take the workload off your plate, you are able to fix your credit on your own. Follow these eight tips to take action:
• Get your credit report
• Review your credit report for errors
• Dispute any errors
• Pay late or past-due accounts
• Increase your credit limits
• Pay off high-interest debts
• Open a new credit card
• Pay balances on time
How long does it take to improve your credit?
Because each person’s financial situation is unique, there’s not an exact amount of time it takes to improve your credit. While credit scores typically update every 30 days, that doesn’t mean you’ll see an improvement in your score.
To understand how long it might take to improve your credit, let’s look at a FICO study of the average amount of time it takes to recover your score back to its original number after a negative mark on your credit report.
| STARTING CREDIT SCORE OF 680 | STARTING CREDIT SCORE OF 720 | STARTING CREDIT SCORE OF 780 | |
|---|---|---|---|
| 30-day late payment | 9 months | 2.5 years | 3 years |
| 90-day late payment | 9 months | 3 years | 7 years |
| Short sale, deed-in-lieu of foreclosure, or foreclosure | 3 years | 7 years | 7 years |
| Bankruptcy | 5 years | 7-10 years | 7-10 years |
*This study was only done for mortgage payments.
How do I maintain good credit after it’s repaired?
After you repair your credit, it’s crucial to practice healthy credit habits to keep your credit score and reports in shape. Be sure to pay all your debts on time or early, don’t use more than 30% of your total credit limit, refrain from submitting multiple credit applications in a short period of time and only spend what you know you can afford.
It’s always a good idea to check your credit score regularly so you understand how your habits impact your score. You can also receive a free credit report weekly through AnnualCreditReport.com.This is a handy way to catch any new errors or negative information.
