Do Credit Repair Services Really Work?

by TDS Reader Contributors

Do Credit Repair Services Really Work photo

Can a credit repair service really help me clean up my credit report? And how do I know if the company I chose to work with is reputable?

Dear Dollar Stretcher,
I have an old debt that has been sold and resold to a small handful of different collection agencies and each instance seems to have been reported to the credit agencies and is therefore on my credit report multiple times even though they are essentially the same debt. Can a credit repair service really help me clean up my credit report? I’d like to buy a home this year and don’t think I want to take the time to try and figure out if I can get my report cleaned up on my own.

Can you ask any readers who have used a credit repair service whether they had good results and whether it was worth the cost? And how did they know the company they chose to work with was reputable? I have heard some companies are essentially a scam.

Proceed with Caution When It Comes to Credit Repair Services

My husband did some programming for a credit repair company for a very short while. Despite what they say, their #1 priority is to make money. Please be careful about credit repair businesses. It is a business; they are not a friend or family, so keep it on a business relationship if you go to one. And be aware that not all are honest.

I would highly recommend Dave Ramsey’s Total Money Makeover (libraries have the book) before you commit to paying someone to do what you can do yourself when you’re already in a financial bind. Take the Dave Ramsey class if you can. A lot of churches offer the classes and will make allowances for hardship cases.

The important thing is to find out what collectors can legally do and what your legal rights are in this situation. Dave Ramsey’s book and class outlines this.

We have been though rough times ourselves and we dug out.

Don't fall for the claims of a credit repair company that it can fix your credit or get you a loan or a credit card.

Regain your financial freedom and fix your credit report with Nolo's Credit Repair Bundle.

Clear Up Your Own Credit

You can get your free annual credit report from any of the credit bureaus.

You are correct most of the creditors who tell you it is easy to get your credit fixed will have to get paid. They also have a tendency to talk you into giving them your paycheck to manage your bills.

It would really be best if you could invest in making your own time to fix your low credit score.

Buying a house is a big plus and a major purchase. Having a good credit score helps the banks to decide how they can help you towards your goal. In society today, it is essential to have great credit. Cash is best. Unfortunately, paying with cash does not help you to gain a credit score.

There are a lot of ways to get credit. One example is to make a small purchase with no interest for a year. I have built up my credit by paying it ahead of time.

Be alert to the interest that can accumulate. It can be as high as 19% to 28% in some cases. Let’s not even look to the future to have to pay this ridiculous amount to any company for any purchase.

My best offering is to do the work and clear up your own credit card.

Reviewed May 2020

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