Consumer protection
Credit repair companies: red flags and what the law requires
What to watch for before you pay anyone to fix your credit.
Direct answer
Under federal law (the Credit Repair Organizations Act), a credit repair company can't charge you before it has performed the services, can't make false or misleading claims, and must give you a written contract and a three-business-day right to cancel. Be cautious of guaranteed results, and remember you can dispute errors yourself for free.
Red flags
- Guarantees of a specific score increase or that negative items will be removed.
- Asking for payment before doing any work.
- Advising you to dispute accurate information, or to create a new credit identity.
- No written contract, or pressure to sign immediately.
- Telling you not to contact the bureaus yourself.
What the law requires
Credit repair organizations must give you a written contract and a statement of your rights, let you cancel within three business days, and cannot collect payment until the promised services are fully performed.
What no company can promise
No company can force a bureau to remove accurate information. Bureaus must investigate and correct what's inaccurate or unverifiable, and nothing more can be guaranteed.
The free alternative
Everything a legitimate service can do on the dispute side, you can do yourself. Rapid Rescore is free software that writes the letters for all three bureaus and attaches your documents; mailing and notarization are optional paid add-ons, not a requirement.
If you do hire a company
- Read the contract and fee timing carefully.
- Check complaints with the CFPB and your state attorney general.
- Ask exactly what it will do that you couldn't do yourself.
Start free
Rapid Rescore writes dispute letters to all three bureaus in minutes, free. Mail them yourself, or have us mail them first-class or certified with tracking. No credit card required to start.
Create my free accountGeneral educational information, not legal or financial advice. Rapid Rescore is not a law firm and does not guarantee any result. Published October 2026.
Yes, when done lawfully. Companies must follow the Credit Repair Organizations Act and state laws.
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