10 Questions You Must Ask Before Hiring a Credit Repair Company

November 11, 2025 • Credit Repair

A single mistake on your credit report can cost you higher interest rates or loan denials—but choosing the wrong credit repair company can do even more damage. Credit repair can help remove inaccurate information and rebuild your financial standing, but not every company follows the rules.

This guide lays out the most important questions to ask before hiring a credit repair company. You’ll learn how to spot legitimate services, avoid scams, and find a company that actually delivers results.

Why You Need to Ask the Right Questions

The credit repair industry operates under the Credit Repair Organizations Act (CROA), which was designed to protect consumers from deceptive practices. Still, many companies ignore these laws and make promises they can’t legally keep.

Asking the right questions before you sign up helps you:

Protect yourself from scams: Stay clear of companies that charge upfront or make unrealistic claims.
Avoid wasting money: Focus on services that clearly explain what they can and can’t do.
Choose wisely: Find a company that’s transparent, compliant, and focused on long-term results.

Before signing any contract, these are the questions that separate trustworthy credit repair companies from those you should avoid.

1. What Specific Services Do You Offer and What’s Included in Your Pricing?

Not every company defines “credit repair” the same way. Some only send dispute letters, while others offer complete solutions that include education and credit monitoring.

Here’s how the leading credit repair companies compare:

Company	Monthly Cost	Initial Fee	Dispute Frequency	Money-Back Guarantee	BBB Rating
Credit Saint	$79–$129	$99	Every 45 days	90 days	A+
Sky Blue Credit	$79	$0	Every 35 days	90 days	A+
The Credit People	$79	$19	Continuous	60 days	A-

When reviewing options, make sure you understand exactly what’s included in the plan, how often disputes are filed, and whether educational tools or identity protection are part of the package.

2. How Long Will It Take to See Results?

Real credit repair takes time. It often takes three to six months before you see meaningful improvements in your credit score.

Any company that promises “instant results” or guarantees deletions within days should raise a red flag. The process involves investigation, communication with the credit bureaus, and follow-ups—all of which take time to complete correctly.

3. What’s Your Dispute Strategy and Is It Personalized?

Some credit repair companies rely on generic templates that they send to every credit bureau. These tend to have limited impact because they don’t address your specific situation.

Look for a company that customizes each dispute and investigates every questionable item on your credit report. Also confirm they work with all three credit bureaus—Equifax, Experian, and TransUnion—to make sure your credit repair is comprehensive.

4. Are Your Practices Compliant With the Credit Repair Organizations Act (CROA)?

CROA compliance protects you from companies that overpromise or take your money before delivering services. A legitimate company should be transparent about these legal requirements.

Requirement	What It Means	Why It Matters
Written contract	Must clearly outline services	Protects consumers
3-day cancellation window	You can cancel without penalty	Prevents pressure tactics
No false claims	Cannot promise specific credit score increases	Ensures transparency

Before hiring, ask for a written contract and make sure the company gives you a clear cancellation policy.

5. What Kind of Results Do Your Past Clients Typically See?

Reputable credit repair companies should be able to show real, verifiable results.

Ask to see:

Verified testimonials: Client feedback that reflects genuine experiences.
Third-party reviews: Look for Google or BBB ratings, not just testimonials on the company’s website.
Average outcomes: The number of inaccurate items removed or typical improvements over time.

Consistent results and positive public reviews are better indicators of trust than flashy claims or celebrity endorsements.

6. Do You Offer a Money-Back Guarantee or Refund Policy?

A company confident in its service will back it up with a clear guarantee. For example, Credit Saint offers a 90-day money-back guarantee if no items are removed during that period.

Before signing up, read the refund policy carefully. A guarantee should be simple, written clearly, and free from hidden conditions.

7. Will I Have Access to My Progress or a Client Dashboard?

Transparency matters. The best credit repair companies give you online access to your dispute history, current progress, and your credit report status with each credit bureau.

A good dashboard lets you track:

Dispute history: Which accounts have been challenged.
Credit report tracking: Updates on changes reported by each credit bureau.
Credit score changes: Progress over time as errors are removed.

Avoid companies that keep you in the dark or only provide vague monthly updates.

8. How Will You Communicate With Me and How Often?

Before committing, ask how often you’ll hear from them and through which channels.

Common communication options include:

Online portal: Secure updates and document uploads.
Phone or email: Personalized updates and support.
Regular reports: Monthly progress summaries showing what’s been disputed and what’s changed.

A credit repair company that’s responsive and proactive is far more likely to keep your credit repair process moving smoothly.

9. What Happens If I Cancel My Service?

Life happens, and you may need to stop your service at some point. Ask what happens if you cancel early.

Look for companies that:

Allow you to cancel anytime without penalty.
Provide refunds for unused service periods.
Avoid hidden reactivation or “membership” fees.

If a company makes it hard to cancel, that’s a sign they’re more interested in keeping your payments than fixing your credit.

10. What Makes Your Company Different From Others?

This question helps you separate genuine expertise from sales talk. A good company should clearly explain what sets them apart—whether it’s faster dispute cycles, specialized customer service, or educational support that helps you maintain a strong credit score long-term.

If they can’t answer confidently or rely on vague buzzwords, it’s a clue that their results may not stand out either.

Red Flags That Signal a Credit Repair Scam

Some credit repair companies make promises that sound impressive but cross legal or ethical lines. Knowing what to watch for can help you protect your money and your credit.

Here are the biggest warning signs to keep on your radar:

Upfront payments: Legitimate companies cannot collect payment before performing any work.
Guaranteed score boosts: No company can promise to raise your credit score by a specific number of points.
Fake identities or CPNs: Some scammers tell clients to create a new identity using a “Credit Privacy Number.” This is identity fraud and can lead to criminal charges.
Discouraging direct contact: If a company tells you not to contact the credit bureaus, that’s another red flag. You always have the right to speak directly with them.

Red Flag	Why It’s a Problem
“We guarantee 100 points in 30 days”	No company can promise this legally
“Pay us first, we’ll start later”	Violates CROA
“Use a new EIN/CPN to start over”	Federal identity fraud

If something sounds too good to be true, it probably is. A trustworthy credit repair company will be upfront about the time, effort, and limitations involved.

How to Verify a Credit Repair Company’s Legitimacy

Before signing any contract, take a few minutes to confirm the company is legitimate. These steps can save you time, stress, and money.

Check BBB accreditation: Review the company’s Better Business Bureau rating and complaint history. A high rating with few unresolved issues is a good sign.
Verify licensing or registration: Some states require credit repair companies to register or post a bond. Check with your state attorney general’s office for details.
Look for real customer reviews: Search Google, Trustpilot, and social media for consistent feedback. Avoid companies with fake-looking or repetitive testimonials.
Use the CFPB database: The Consumer Financial Protection Bureau keeps records of complaints. This helps you spot patterns of misconduct or violations.

Legitimate companies are transparent about their business practices and don’t pressure you to sign up immediately.

Alternatives to Credit Repair Companies

You don’t always need to hire a company to fix your credit report. Depending on your situation, there are several legitimate alternatives that may be cheaper and equally effective.

DIY credit repair: You can dispute inaccurate information directly with the credit bureaus for free. The process is straightforward when you have copies of your credit reports and supporting documents.
Credit counseling: Nonprofit credit counseling agencies can help you manage debt and create a repayment plan without charging high fees.
Credit builder loans: These small loans help you build positive payment history while saving money. They’re offered by many credit unions and fintech companies.
Secured credit cards: Using a secured credit card responsibly can rebuild your credit over time by establishing a consistent record of on-time payments.
When to hire a company: If you’ve already tried fixing errors yourself or have complex cases involving multiple creditors, professional help can save you time and ensure accuracy.

Exploring these options first can help you decide whether professional credit repair is truly necessary.

Final Thoughts

Credit repair is not a quick fix—it’s a process that requires patience and honesty. The right company will be transparent, compliant, and focused on results that actually last.

Before hiring anyone, take time to ask the right questions, verify credentials, and compare your options carefully. Doing your homework upfront helps you avoid scams and set realistic expectations for your credit improvement.