Credit repair costs range from nothing to several hundred dollars per month, depending on whether you do the work yourself or hire a company

If you repair your own credit by disputing errors and paying down debt, the cost is zero except for postage and your time. If you hire a credit repair company, you will pay between $50 and $150 per month, though some charge flat fees of $300 to $1,000 upfront instead. A few charge per dispute — typically $25 to $100 for each item they challenge on your behalf. The Federal Trade Commission does not set a price cap, so companies can charge what they want. What matters is understanding what you are actually paying for, because credit repair companies cannot do anything you cannot do yourself for free.

The reason cost varies so widely is that "credit repair" is not a single service. Some companies focus on disputing inaccurate items on your credit report. Others promise to remove late payments, charge-offs, or collections accounts — claims that are often misleading. A few combine credit counseling with dispute services. Before you pay anyone, you need to know what work they will actually do and whether that work is worth the price to you.

Key Takeaways

  • You can dispute errors on your credit report yourself for free by contacting Equifax, Experian, or TransUnion directly, or by filing a complaint with the Consumer Financial Protection Bureau.
  • Credit repair companies charge $50 to $150 monthly or $25 to $100 per dispute, but cannot remove accurate negative information or work faster than you can on your own.
  • Paying down existing debt and making on-time payments improve your score without paying anyone — this is the only method that actually works long-term.
  • Some credit repair companies make false promises about removing accurate late payments or collections; the Federal Trade Commission has shut down dozens for deceptive practices.
  • If you hire a company, verify they are registered with your state's attorney general and ask for a written contract that lists exactly which disputes they will file.

What you can do yourself for free

The only cost-free way to repair credit is to dispute inaccurate information directly with the credit bureaus. You can request your credit report from all three bureaus — Equifax, Experian, and TransUnion — at annualcreditreport.com, which is the official site run by the three bureaus themselves. The report is free once per year. If you find an error, you can dispute it by mail, phone, or online through each bureau's website. There is no charge.

You can also file a complaint with the Consumer Financial Protection Bureau if you believe a bureau reported something incorrectly. The CFPB forwards your complaint to the bureau, which must respond within 15 days. This is also free. The entire process takes weeks or months, but it costs nothing and you control every step.

The second free method is to improve your score by paying down debt and making on-time payments. This takes longer than disputing errors — usually six months to two years to see meaningful improvement — but it is the only approach that works permanently. Paying down a credit card balance from $5,000 to $1,500 will raise your score more reliably than any dispute or credit repair company ever will.

What credit repair companies charge and what they do

Companies that charge monthly fees typically ask for $50 to $150 per month and commit to disputing a certain number of items per month — often three to five. At that rate, disputing 12 items over a year costs $600 to $1,800. Some companies charge a flat upfront fee of $300 to $1,000 instead, then monthly fees of $30 to $50 after that. A few charge per dispute: $25 to $100 for each item they challenge.

What these companies actually do is file disputes with the credit bureaus on your behalf. They send letters to Equifax, Experian, and TransUnion claiming that items on your report are inaccurate. The bureaus then investigate — the same investigation they would conduct if you filed the dispute yourself. If the investigation finds the item is inaccurate, it gets removed. If it is accurate, it stays. The credit repair company cannot speed up this process or change the outcome.

Some companies also offer credit counseling, which means a counselor reviews your budget and debt and suggests a repayment plan. This service is sometimes free through nonprofit credit counseling agencies, though for-profit companies may charge $100 to $300 for it. Credit counseling can be useful if you are struggling to manage debt, but it is separate from credit repair and does not directly improve your score.

Why hiring a company rarely saves you money

A credit repair company charges you $600 to $1,800 per year to dispute items that you can dispute yourself for the cost of postage — roughly $1 to $2 per letter. If you dispute 12 items yourself, your cost is $12 to $24. If a company does it, your cost is $600 to $1,800. The only scenario where paying a company makes financial sense is if you have so many disputes to file that the time cost to you is worth more than the money you would save.

The second reason hiring rarely saves money is that credit repair companies cannot remove accurate information. If you have a legitimate late payment, collection account, or charge-off on your report, no company can remove it — only time can. Late payments fall off your report after seven years. Collections accounts fall off after seven years from the date of first delinquency. Charge-offs fall off after seven years as well. A company that promises to remove these items is making a false claim, and the Federal Trade Commission has shut down dozens of credit repair firms for exactly this deception.

The fastest way to improve your score is to pay down existing balances and make on-time payments going forward. This costs nothing except the money you are already spending on debt. A credit repair company cannot speed this up.

Red flags that signal a scam or misleading company

Avoid any company that promises to remove accurate negative information, guarantees a specific score increase, or asks you to pay before they do any work. The Federal Trade Commission's Credit Repair Organizations Act prohibits companies from charging upfront fees before they deliver results, though some companies skirt this rule by calling the upfront fee a "consultation" or "setup" charge. If a company asks for money before filing a single dispute, that is a warning sign.

Also avoid companies that tell you to dispute accurate information as if it were inaccurate, or that suggest you create a new credit identity or file a false police report. These tactics are fraud and can result in criminal charges against you, not just the company. The company may disappear after taking your money, leaving you to face the legal consequences.

Before hiring any company, check whether it is registered with your state's attorney general and search online for complaints filed against it. Ask the company for a written contract that lists exactly which items they will dispute and how much you will pay. If they refuse to put it in writing, do not hire them.

When paying for credit repair might make sense

Paying a credit repair company makes sense only in narrow situations. If you have 20 or more inaccurate items on your report and you do not have time to dispute them yourself, a company can handle the paperwork. If you are not comfortable writing dispute letters or navigating the bureau websites, a company can do that work for you. If you have a complex situation — such as identity theft or a data breach that affected your report — a company that specializes in that area might be worth the cost.

Even in these cases, start by disputing one or two items yourself to see how the process works. You may find it is simpler than you expected. If you then decide to hire a company, you will know what to expect and can evaluate whether the company's fee is worth your time savings.

Nonprofit credit counseling as an alternative

If you are struggling with debt and want guidance on repayment, nonprofit credit counseling agencies offer free or low-cost counseling. These agencies are approved by the Department of Justice and do not profit from your debt. They can review your budget, help you create a repayment plan, and sometimes negotiate with creditors on your behalf. The National Foundation for Credit Counseling and the Financial Counseling Association both maintain directories of approved agencies in your area.

Nonprofit counseling does not directly repair your credit, but it can prevent future damage by helping you manage debt more effectively. Some agencies also offer debt management plans, where they collect a single payment from you each month and distribute it to your creditors. This service typically costs $25 to $50 per month and can help you stay on track if you struggle with multiple payments.

Frequently Asked Questions

Can a credit repair company remove a legitimate late payment from my report?

No. A late payment that is accurate cannot be removed by any company, regardless of what they promise. Late payments fall off your report seven years after the missed payment date. If a company guarantees removal of accurate negative items, they are breaking the law and you should report them to the Federal Trade Commission.

How long does it take to see results from credit repair?

Disputes typically take 30 to 45 days for the credit bureau to investigate. If the item is inaccurate, it is removed and your score may improve within one or two billing cycles. If the item is accurate, it stays. Paying down debt takes longer — usually three to six months before you see a meaningful score increase, because credit scoring models need time to reflect the new balance.

Is it illegal for a company to charge upfront fees for credit repair?

Yes, under the Credit Repair Organizations Act. However, some companies charge an upfront "consultation" or "setup" fee and claim this is not the same as a service fee. If you are asked to pay money before any work is done, ask in writing what specific work that fee covers and get a full refund policy in your contract.

What should I do if a credit repair company takes my money and does nothing?

File a complaint with the Federal Trade Commission at reportfraud.ftc.gov and with your state's attorney general. If you paid by credit card, you can also dispute the charge with your card issuer. Document everything — emails, contracts, payment receipts — and keep records of what work the company promised to do.

Will hiring a credit repair company hurt my credit score?

No, disputing items does not hurt your score. However, if the company encourages you to explore for new credit or close old accounts as part of their strategy, those actions can temporarily lower your score. Ask the company in writing whether they will recommend any actions that affect your credit profile before you hire them.