Can I trust credit repair services?
<div class="user-question">Are credit repair services doing more harm than good?</div>
Hey there!
If your credit feels like it’s in chaos, you’re not alone - and you're not stuck. When life throws curveballs like identity theft or massive data breaches, it’s understandable to look for a quick fix. That’s why so many people turn to credit repair services. But here’s the truth: you have more power than you think.
Before spending your hard-earned money on companies that promise to “fix” your credit, it’s worth learning what they do - and what you can do yourself, often more effectively and for free.
This guide is here to support you with the tools, knowledge, and confidence to take control of your credit and start building a brighter financial future - step by step, on your terms.
Psst... to avoid this getting too long, we've decided to divide this into a three-part series. See our deep dive on what to do if your SSN has been stolen and how to get out of secured credit cards.
Don't have time for the whole thing? Here are our main takeaways.
<div class="frich-tip">1️⃣ Having unpaid debt will keep your credit score low. So if you have unpaid debt that you're struggling with, check out these debt consolidation options.</div>
<div class="frich-tip">2️⃣ If you're looking for ways to supercharge your journey of rebuilding your credit score, check out these vetted tools that will help you do that.</div>
<div class="frich-tip">3️⃣ Want to know our top pick for a credit buiding card? Check out Fizz.</div>
What is credit repair?
Credit repair refers to the process of disputing inaccurate or outdated information on your credit reports to improve your credit score. It's often offered as a paid service, but you can do everything yourself - for free.
That said, if your credit issues aren’t due to errors but a lack of positive history, credit builder products may be a smarter path. Tools like credit builder loans, secured cards, and rent or utility reporting services help you build credit over time by adding on-time payment history to your reports - without needing to take on traditional debt.
- Credit repair is reactive - trying to fix what’s already on your report.
- Credit building is a proactive process - creating a strong credit profile through responsible financial habits.
<div class="frich-tip">Frich tip: If you're ready to build credit, we have two favorite options - Flex helps you build credit with your rent payments & Fizz's debit card that helps you build credit without the pitfalls of traditional credit cards. Fizz does not charge interest or fees for late or returned payments.</div>
The perils of credit repair services
Unfortunately, many credit repair companies are costly, misleading, and often ineffective. Take Lexington Law and CreditRepair.com, for example. They collected millions of upfront and monthly fees - without delivering results. In 2025, the Consumer Financial Protection Bureau intervened and secured over $1.8 billion in refunds for approximately 4 million victims.
Most credit repair companies operate similarly: charging $50–$150 per month to dispute negative items on your credit report. While a dispute is being reviewed, credit bureaus often temporarily remove the item, which can temporarily boost your score. But if the dispute is found to be invalid, the item comes right back - and so does the damage to your score.
These services cannot guarantee permanent results, and if they claim to, it’s a major red flag. In the end, you may spend hundreds of dollars - money that would be better used to pay down debt or invest in credit-building tools that work.
<div class="frich-tip">Frich tip: If you've already found yourself in a situation where you've accumulated debt across multiple cards, take a look at these companies that can help you deal with your existing debt.</div>
How to repair credit yourself
You can do everything a credit repair company does for free, and there’s even a new startup, Credit Repair Automate,offering free AI-generated credit disputes. Here’s how you do it yourself:
- Pull all three credit reports from Equifax, Experian, and TransUnion using AnnualCreditReport.com, the only federally authorized site for free access. Checking your own reports is a soft inquiry and will not hurt your credit score. It's essential to review all three because not every creditor reports to every bureau; some may omit accounts or display different information. If you find any errors, you should dispute them directly with the bureau that shows the inaccuracy. Additionally, if favorable accounts are missing (i.e., no late payments, low balances), you may want to contact the lender to inquire if they can report these to the other bureaus.
- If you’re not planning to apply for credit soon, freezing your credit reports helps prevent identity theft and unauthorized access. It blocks lenders from viewing your report for new accounts but doesn’t affect your credit score or existing credit use.
<div class="frich-tip">Frich tip: You can freeze and unfreeze your reports for free at Equifax, Experian, and TransUnion.</div>
- If you have collection accounts showing on your credit report, contact the collector to negotiate paying them off and removing them.
- Similarly, if you have a missed payment with a creditor but have otherwise been a good customer, consider asking if they will adjust their records as a goodwill effort. Here's a mockup script that you can use if you decide to go that route:
<div class="frich-tip">Frich tip: Pair this DIY approach with the help of Kikoff! You can sign up in minutes with no credit check, no interest, & no hidden fees.</div>
Why credit building is a better approach than credit repair
Unless inaccuracies are severely hurting your score, credit building is usually the smarter move, which can often improve your credit score from 10 to 60 points or more. And you can do it without racking up debt.
- Try credit builder loans: These allow you to make small monthly payments that are reported to the credit bureaus, helping to build a positive credit history without incurring debt. At Remynt, we offer a credit builder loan for just $10 per month. Learn more here.
- Use tools like Experian Boost, Self, or Brigit to report rent, utilities, and other recurring monthly expenses.
- Consider secured credit cards, where you deposit a sum (usually $200–$500) and receive a credit limit equal to that amount. These are easier to qualify for if your score is low, although not guaranteed.
<div class="frich-tip">Frich tip: Here are some Frich vetted options for secured credit cards!</div>
Credit issues - especially when caused by identity theft - can feel deeply personal and completely overwhelming.
But remember: your credit is fixable, and you don’t need to pay someone else to do what you can do yourself. From understanding your rights under the FCRA to exploring credit builder products and using secured cards wisely, the tools to take back control are within reach.
Be patient with the process, protect yourself from scams, and keep building - because the most powerful credit repair plan is the one you build for yourself. You got this!
<div class="frich-tip">Frich tip: And if in the meantime, you're looking for ways to make some extra cash, check out this article where we compiled companies that literally give away free money!</div>
Good luck -- Gwyneth
