Try to avoid applying for many new credit cards or closing several old accounts without a larger financial strategy. With credit, everything is connected, so closing old accounts and immediately opening new ones could shorten your credit history length and hurt your credit mix. If you have late payments, they will stay on your record for seven years from the original delinquency date. For example, a 30-day late payment will hurt your score less than a 60-day late payment. Also, as time goes by, the late payment’s impact on your credit score lessens, especially if you continue paying your bills on time. Founded in 2009, Happy Money is an online lending platform that can connect you with fixed-rate credit card debt consolidation loans in every state except Iowa, Massachusetts and Nevada.

With the necessary legal permissions, the company will then dispute inaccuracies with your creditors and the major credit bureaus. Common errors might include incorrect tax liens, foreclosures, duplicate accounts, outdated bankruptcies, or other outdated information. Credit bureaus are required to investigate these disputes within 30 days and remove any inaccuracies they confirm. CreditRepair.com members saw over 200,000 items removed from their credit reports in 2023. Following the enrollment process, your Credit Coach will thoroughly review your credit report, identify any issues and suggest potential dispute candidates to help increase your scores. Furthermore, you’ll be provided with personalized advice on how you can further optimize and improve all your credit scores.

The first, most basic step is to download a copy of your credit report. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every tax article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of tax products. We considered numerous factors in our evaluations of credit repair companies.

If you have a significant amount of outstanding credit card debt, you may be able to consolidate the debt to make payments more manageable and pay it off faster. A debt consolidation loan can offer lower interest rates to help you save as you pay off the debt. It could keep you from getting the best rates on loans and credit cards, leading you to pay higher interest rates — or get rejected altogether. In some instances, a below-average credit score can even affect your job prospects. Your credit score, a three-digit number derived from your credit reports, is a reflection of your credit history with each credit bureau. Not all credit repair services are reputable, and some are outright scams.

How Can I Tell A Credit Repair Scam From A Reputable Credit Counselor?

Most companies take years to accomplish what we can in just a few short months. Certain negative items, including bankruptcies and judgments, are difficult, if not impossible, to remove. Last but by no means least is the Advanced Credit Repair Package at $119.95 per month with an initial first work fee of the same amount.

You can find one through the National Foundation for Credit Counseling’s agency finder tool or the Department of Justice’s list of approved credit counseling agencies. If improving your credit score is one of your goals for 2025, you’re not alone. With lenders tightening approval standards and interest rates fluctuating, having strong credit is more important than ever. But the process of rebuilding your credit can feel confusing—unless you have a clear plan. The Consumer Financial Protection Bureau is a U.S. government agency dedicated to making sure you’re treated fairly by banks, lenders, and other financial institutions.

These are not just bad ideas, they’re also scams — and they’ll hurt your credit if you buy into the scam. If a company promises to create a new credit identity or hide your bad credit history or bankruptcy, that’s also a scam. These companies often use stolen Social Security numbers, or they get people to apply for Employer Identifications Numbers (EINs) from the IRS under false pretenses.

Pros And Cons Of Credit Repair: What To Know Before You Start

Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While creditrepair strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. When combined with strategies to improve your credit habits, credit repair can lead to a boost in your credit score over time. A clean credit report opens doors to better financial opportunities and lower interest rates. Prepaid debit cards, payday loans, buy now, pay later loans and cash advance apps are examples of accounts that generally don’t help you build credit. If you’re looking for ways to improve your credit score, focus on other options.

Knowing how credit scores are calculated allows us to target specific areas and drop certain practices that aren’t helpful. After gathering all the necessary reports, our evaluation will determine what steps we need to take to correct your report and fix your bad credit score. Credit scores are based on your overall experience with paying your bills over time. The longer you have credit and pay on time, the more information there is to show you’re a good credit risk. To resolve all of your disputes, you can expect credit repair to take anywhere from three to six months. If you only have a few minor blemishes to fix, it might take less time.

The CFPB emphasized its commitment to aiding defrauded consumers, despite industry opposition and political calls for the agency’s dismantling. I am only in the beginning stages but, so far, everything in my “plan” to financial stability seems to be going smoothly. This program will help me pay off the debt faster and free up some money to start putting toward my retirement fund. Learn about the status of FTC online services and website information updates during the lapse in funding. Joe Pye is Debt.com’s managing editor and a PFE-certified debt management professional.

If you set out to repair your credit yourself, there are no costs aside from getting your credit reports and paying off old debts that may be damaging your credit. While the process is often marketed as a way to “fix bad credit,” it is important to clarify that only inaccurate or unverifiable information can be removed according to Experian. Late payments, defaults, or bankruptcies that are accurate must remain on your report until they age out under the Fair Credit Reporting Act (FCRA) timeline—typically seven years for most negative marks. You can also get free copies of your credit reports from the three major credit bureaus by visiting AnnualCreditReport.com. After you repair your credit, it’s crucial to practice healthy credit habits to keep your credit score and reports in shape.

If you’ve already tried reaching out to the company and still have an issue, you can submit a complaint to the Bureau. Tell us about your issue—we’ll forward it to the company and work to get you a response, generally within 15 days. It’s important to carefully weigh the pros and cons before deciding whether to work with Accredited Debt Relief. Kim Lowe is Head of Content for NerdWallet’s Personal and Student Loans team.