Straight answers to the most common questions about credit repair, based on guidance from the FTC, the CFPB, and federal law.
Is credit repair legal?
Yes. Credit repair is legal when done within federal law. The Credit Repair Organizations Act (CROA) regulates the industry rather than banning it — it requires written contracts, a three-day cancellation right, and bans charging fees before services are performed. Source: https://creditfirm.net/faqs/
How long does credit repair take?
A typical set of disputes takes 3 to 6 months to resolve. Simple errors can clear in 30 to 60 days, while collections or charge-offs often take 3 to 6 months. CreditFirm.net advises allowing at least 90 days to see a significant score increase. Source: https://creditfirm.net/faqs/
Can I dispute items on my credit report myself for free?
Yes. The FTC is explicit: “You don’t have to pay anyone to do this for you — you can dispute inaccurate items on your credit report yourself, for free. There’s nothing a company could do for you that you couldn’t do yourself.” Get your reports at AnnualCreditReport.com, then write to the bureau and the company that supplied the information. Source: https://consumer.ftc.gov/articles/credit-repair-how-help-yourself
What is pay-for-delete, and does it work?
Pay-for-delete is a private negotiation where you offer to pay a collection account in exchange for the collector removing the tradeline from your reports. No law requires a collector to agree, and the bureaus discourage the practice. If you try it, get the deletion promise in writing on the collector’s letterhead before you pay — original creditors almost never agree.
Can a credit repair company remove accurate negative items?
No. No one can legally remove negative information that is accurate and current. Most negative items stay on your report for seven years; bankruptcy can remain for ten. Any company promising to remove accurate items is a red flag. Source: https://consumer.ftc.gov/articles/credit-repair-how-help-yourself
How does the dispute process work?
Under Section 611 of the Fair Credit Reporting Act, once you dispute an item with a credit bureau, the bureau has 30 days to investigate (45 if you submit additional information). It must forward your dispute and evidence to the company that supplied the data, and must delete or correct the item if it cannot be verified. You receive written results within 5 business days of completion.
Will disputing items hurt my credit score?
The dispute itself does not lower your score and creates no inquiry. While an item is under dispute it is generally excluded from scoring calculations; once the flag lifts, your score reflects the actual outcome. Only dispute items that are genuinely wrong — deleting an old account in good standing can lower your average account age.
How much does credit repair cost?
Typical pricing runs $50 to $150 per month, plus a setup or first-work fee of $0 to $195 depending on the company. CreditFirm.net charges $49.99 per month with no additional fees, no long-term contract, and cancel-anytime terms. Source: https://creditfirm.net/faqs/
How do I spot a credit repair scam?
The FTC’s red flags: the company demands payment before doing any work; promises to remove accurate negative information; won’t give you a written contract or your three-day cancellation right; tells you to dispute accurate items or file false identity-theft claims; suggests creating a “new credit identity” (a federal crime); or asks you to sign blank forms. Source: https://consumer.ftc.gov/articles/credit-repair-how-help-yourself
What is a 609 letter?
A “609 letter” invokes Section 609 of the Fair Credit Reporting Act, which covers your right to disclosure — to receive everything in your credit file, the sources of the data, and who accessed your report. It does not invoke your right to dispute inaccuracies; that right lives in Section 611. The 609 letter is often mischaracterized online as a deletion tool. Source: https://www.experian.com/blogs/ask-experian/what-is-a-609-dispute-letter