Credit Supreme home

Credit repair guide

About Credit Repair

What credit repair is, what credit repair companies do and are not allowed to do under federal law, and how to tell if a company is legit.

What is Credit Repair?

Credit repair means identifying and correcting inaccurate information on a consumer credit report across the three major credit bureaus. It involves disputing the identified items, typically with letters to the bureaus, to correct or remove the information being reported.

It also includes a strategic approach to optimizing credit scores, so you can reach your short- or long-term financial goals.

What Do Credit Repair Companies Do?

Almost every credit repair company is different, not so much in how credit reports are repaired as in how they conduct business. Although their practices differ, credit repair companies:

  • Identify inaccurate and erroneous information on a consumer credit report
  • Handle the dispute process
  • Advise on a strategic credit management and development plan designed to raise and maintain credit scores
  • Keep customers informed of their results

What Are Credit Repair Companies Not Allowed To Do?

Credit repair companies must operate under the Credit Repair Organizations Act (CROA), a federal law that protects consumers. Among other things, CROA prohibits credit repair companies from the practices below. This is a summary, not legal advice.

  • Charge before services are performed

    A credit repair company may not accept payment for services before they are fully performed. For example, it cannot charge the full price of a six-, twelve- or twenty-four-month membership in one lump sum up front.

  • Make misleading promises about results

    Credit repair companies cannot make false or misleading claims about the results they can achieve, because the outcome is not up to the customer or the company. Claims like “we can delete anything” or “we can raise your score by 100 points” are red flags.

  • Misrepresent their services or guarantees

    A company must not make untrue or misleading representations about its services, including any money-back guarantee. Guarantee terms should be clearly stated.

  • Skip required contracts and cancellation rights

    Credit repair companies must provide a written contract and disclosures, and customers have the right to cancel. It is illegal to bind a customer to a contract without those rights.

Is Credit Repair Legit?

Credit repair has picked up a negative reputation because some companies don’t follow CROA and offer the service for their own gain at the customer’s expense. That’s why many people associate credit repair with scams, even though plenty of companies follow federal law and genuinely help their customers.

So, yes: reputable credit repair companies help customers with corrections, deletions and credit advice that can change their credit situation for the better. Do your research and ask the right questions, remember that results that seem too good to be true may not be true, and protect your identity, credit and finances. You also have the right to dispute inaccurate information yourself, for free; see our DIY option.

Free credit consultation

Better Credit is One Click Away

Enter your details to speak with one of our credit specialists.

Talk to a credit specialist

Enter your details to speak with one of our credit specialists.

Ready to get started?

Our team is ready to help. Choose DIY or full-service, or talk it through with us first.

Get Started (877) 334-4567