How Much Does Credit Repair Cost?

The cost of credit repair depends on whether you’re going to do it yourself or hire someone to do it for you. The best choice for your situation will depend on factors such as the number and type of negative items on your credit reports, your experience in dealing with credit bureaus, and your discipline and determination. In some cases, DIY will work just fine. In others, professional assistance can be massively helpful – but it will cost a lot more. Here’s a closer look at credit repair, the pros and cons, and the average costs for hiring a pro.

Table of Contents

• What is credit repair?
• Pros and cons of hiring a credit repair company
• How much does a credit repair company charge?
• How do credit repair companies work?
• How much does a credit repair cost FAQs
• Summary of our guide on how much credit repair costs

What is credit repair?

Credit repair involves taking steps to improve the state of your credit reports and scores. It can include paying down balances, having erroneous negative records removed, opening new accounts, and more.

While you can work to patch up your own credit history, there comes a point when calling in a credit repair company can be a good idea. Often, that point comes when you’re dealing with issues such as multiple late payments, charge-offs by lenders, judgments, collections, or repossessions. But it will cost you.

In these cases, the stakes are high. You could get sued by creditors or debt collectors and have your wages garnished. Further, you’ll likely be suffering the crippling effects that bad credit can have on daily life. Credit repair companies can assess your situation, ensure you know your rights, and help you resolve your issues as quickly as possible.

Pros and cons of hiring a credit repair company

If you’re considering hiring a credit repair company to fix your credit, here are the main pros and cons to consider.

Pros of credit repair

• Gain an advocate for your rights as a debtor
• Learn how to repair bad credit as fast as possible
• Get help removing erroneous negative items from your credit reports
• Save time researching laws, contacting creditors, etc.
• Get access to credit counseling on-demand
• Learn which new credit account types could benefit you
• Receive credit score progress reports and alerts
• Gain access to your credit reports and scores  (varies by company)
• Get money back if you’re not satisfied (varies by company)
• Gain other benefits such as identity theft insurance (varies by company)

Cons of credit repair

• Monthly service fees average around $100
• Startup fees are often required
• Some companies limit the number of disputes allowed per month
• Results can’t be guaranteed (although moneyback guarantees are sometimes offered)
• If not careful, credit repair companies can trigger more aggressive collection attempts/lawsuits
• You have to watch out for credit repair scams
• You might be able do everything they can do for free

How much does a credit repair company charge?

The cost of hiring a credit repair company will depend on the company and plan you choose. However, most charge a one-time setup fee that ranges from $19 to $99, and an ongoing monthly fee that ranges from $79.99 to $119.99.

While the plans can seem expensive, most are month-to-month, allowing you to cancel at any time. Further, if a credit repair company can help you build credit faster than you otherwise could, it can be worth the fee many times over. That said, many offer a warranty of some sort so you can get money back if you’re not happy with the results.

How do credit repair companies work?

The professional credit repair process starts when the company you hire pulls your credit reports and scores from the three major credit bureaus (TransUnion, Experian, and Equifax). Using that information, they will come up with a plan to minimize your negative entries and maximize positive ones. Then, with your consent, they’ll get to work on trying to improve your credit record.

Most credit repair agencies focus on using dispute letters to attempt to have questionable negative items removed from your credit history. How does that work? Well, as per the Fair Credit Reporting Act (FCRA), you have the right to dispute inaccurate information with the credit bureaus. When an account is called into question, it must be verified by the debt owner. If it can’t be verified, then the credit bureaus have to remove it.

Additionally, credit repair agencies often offer credit monitoring, credit score/report access, customer support, and recommendations on how to build your credit. Some also offer perks like identity theft monitoring and insurance.

Summary of our guide on how much credit repair costs

• Credit repair refers to the process of taking steps to improve your credit reports and scores.
• Credit repair agencies specialize in getting negative inaccurate information removed from credit reports.
• They may also track your credit, answer your credit questions, and advise you on various ways to improve your credit scores.
• You can technically do anything a credit repair company can do yourself.
• Unfortunately, creditors and collectors often benefit from what you don’t know.
• If you’re not an expert in credit law and negotiations, a credit repair company can serve as your advocate and level the playing field.
• Credit repair companies are most helpful for people with poor credit and multiple negative marks on their credit reports.
• Your credit repair results will depend on your situation and the expertise of the credit repair agency you choose.