Start My Answer
loading...

Credit Repair Scam

Sarah Edwards | May 15, 2023

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: If you’re seeking ways to improve your credit score quickly, you may come across companies that claim they can increase your score by 50 or 100 points in no time flat. Most of these companies are shams. SoloSuit explains what to know about credit repair scams.

A bad credit score can make it difficult to do anything involving a loan or credit extension, including renting an apartment, qualifying for a mortgage, or obtaining a credit card. Sometimes, bad credit can even prevent you from getting a job.

When people find themselves in the unenviable position of needing something but having a poor credit score, they sometimes turn to credit repair companies for help. However, most credit repair organizations are scams. They offer quick fixes that usually don’t work, all at an additional cost to you.

How to recognize a credit repair scam when you see one

There is one bright-red flag to look out for in a credit repair scam: a fee in exchange for “fixing” your credit.

No one can repair your credit except you—not your mother, not your best friend, not the guy you saw online peddling an extra 50 points to your credit score if you pay him $100. Repairing your credit isn’t a transactional exchange. Unfortunately, you can’t pay to fix it; you must build it yourself.

Think of your credit like a paper you wrote for a class in high school. You could expect a decent grade if you worked hard on your paper, performed the proper research, checked for grammatical errors, and ensured it met all your course requirements.

However, if you waited until the last minute and threw together a paper with no research and lots of mistakes, your grade would probably be pretty poor.

Similarly, you can’t wait until you need something to fix your credit. You won’t see a 100-point improvement to your score if you suddenly pay a bill; instead, you’ll need to consistently make payments over several months.

The Federal Trade Commission has a report on credit repair scams over the last twenty years. Before entering into an agreement to pay for a credit repair, you should read about these cases and see if you find any similarities to your case.

Have you received a debt collection notice in the mail? Make the collection agency validate your debt with SoloSuit’s Debt Validation Letter.

Check your credit report regularly for mistakes

Aside from paying your bills on time, you’ll want to monitor your credit report for negative marks.

You can obtain copies of your credit report for free on the AnnualCreditReport website. Under federal law, all three credit reporting bureaus must give you a free copy of your credit report annually. However, due to the COVID-19 crisis, this site allows you to request your credit report weekly.

All three credit reporting bureaus, including TransUnion, Experian, and Equifax, offer credit monitoring services that notify you if there’s a change to your credit score. The cost for credit monitoring varies, but typically you’ll pay an annual or monthly fee for their services.

A negative mark, like a late payment or a collection item, can drop your credit score by 30 to 100 points. If you see a change in your score, it’s critical to investigate the cause immediately. If you disagree with the item, you can contact the company that made the report or dispute it directly with the credit reporting bureau.

Let’s consider an example.

Example: Sandra is planning to buy a house soon, so she signs up for a credit monitoring service to learn about her current credit score and get notifications if there are any changes. Sandra currently has a score of 650, which she hopes to raise to 700 in the next six months. Sandra’s making diligent, timely payments to her creditors. One day, she receives an alert that her credit score dropped by 30 points. A creditor reported her payment late, but Sandra knows she made it on time. She disputes the item with the credit reporting bureau, providing a copy of her payment receipt as evidence. The creditor confirms the report was a mistake and requests its removal from her report. Sandra’s credit score goes up by 30 points afterward.


In our example, the creditor made a mistake, causing Sandra’s score to drop. She wouldn’t have known about the error if she hadn’t paid attention to her credit score. The unknown error could have made it difficult for her to qualify for the mortgage she’ll need when she buys a house.

Remember, no one can fix your credit but you

A credit repair company will take your money, but there’s no guarantee you’ll see any results from its efforts. In the worst cases, it will take your money and skedaddle. If you’re considering hiring a credit repair company to fix your credit, put your money toward something that will give you more value, like paying down your open credit lines.

Is your credit card company suing you for unpaid debt? Settle the debt for less with the help of SoloSettle.

What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started

Contents