Credit counseling agencies are typically nonprofit organizations. They employ certified credit counselors who can help you with consumer credit, budgeting, and debt. If you need help with debt you can’t handle, then they can also get you set up with a debt management plan. Credit counseling is considered an alternative to debt settlement or bankruptcy.

You can also find the names of anyone who has obtained a copy of your credit report. Credit bureaus do not gather data about race, religion, medical history, sexual orientation, political affiliation, criminal record or any other information that is unrelated to credit. Consumers have three business days to cancel a contract with a credit repair company without charge. You’re entitled to a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus by visiting You can also create a myEquifax account to get six free Equifax credit reports each year. Credit bureaus sell the information in your report to businesses that use it to decide whether to loan you money, give you credit, offer you insurance, or rent or sell you a home. Some employers use credit reports to decide whether to hire you.

Giving Good Credit A Second Chance

Paying a collection without confirming it’s valid can restart the clock on how long it stays on your credit report. Use credit repair service for small purchases and pay it off in full every month. If it’s recent or actively affecting your credit score, then paying it may help—but only under the right terms. Even one late payment can hurt your score, especially if it’s more than 30 days past due. Credit repair can take several months, depending on the complexity of your case and the number of inaccuracies.

The U.S. Department of Justice lists credit counseling agencies for people looking for debt reduction assistance. But how can you know the difference between just a tempting offer and an ethical business that can truly help? Here’s a rundown of the resources and services you can turn to when you’re experiencing a financial burden. If you choose to have a company do the work for you, research its credit repair packages and reputation within the space before signing up for any services.

Keep Your Credit Utilization Rate Low

However, you’ll also need to pay an upfront fee of $89 to get started with either credit monitoring plan. If you think you need outside help to improve your credit, your best option might be looking for a nonprofit certified credit counseling agency instead of a credit repair firm. Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

For users of credit repair companies, having a professional go to bat for you is worth the expense —especially when the result is a major increase in your credit score. Brokerage services for Atomic are provided by Atomic Brokerage LLC (“Atomic Brokerage”), member of FINRA/SIPC and an affiliate of Atomic, which creates a conflict of interest. See details about Atomic, in their Form CRS, Form ADV Part 2A and Privacy Policy. See details about Atomic Brokerage in their Form CRS, General Disclosures, fee schedule, and FINRA’s BrokerCheck.

Many credit repair companies only provide disputes to the credit bureaus or generic ‘validation letters’ to creditors. We will evaluate the credit history to create the best plan for improving your personal financial situation and your score. There are a few things you can do to make sure your credit stays in good shape after it’s been repaired. First, be sure to make all your account and loan payments on time–this includes any new loans, credit cards, or lines of credit you take out after your credit has been repaired. Most systems now offer automatic card or loan payments or you can set up alerts each month to remind you. Second, keep your credit card balances low–use less than 30% (ideally 10%) of your credit limit on any credit cards you have.

This more aggressive intervention requests documentation to corroborate the information that they are reporting in your credit reports and proof of a creditor’s compliance with various consumer protection statutes. If the debt is not validated within the FCRA time-frame, the account is deleted from your credit report. If the creditor sends in the required documents they are forwarded to the CFPB for review. The CFPB will then make a determination of whether the documents meet the criteria outlined by the FCRA for debt validation and either delete or verify the account. We will request that all of the creditors reporting inquiries on your credit reports provide proof of their permissible purpose for pulling your reports. If they have the proper authorization, the inquiry will stay, if they can’t verify their permissible purpose, the inquiry is deleted.

Repairing major damage may take several years, especially if your history includes major negative events such as bankruptcy or foreclosure. Nevertheless, if you begin applying these tips today, you can see meaningful credit score improvement within a few months. Credit repair services are typically set up as monthly subscriptions, with fees ranging from $50 to $100 depending on the service offered. Many companies have add-on benefits available through different tiered plans. There may also be a one-time setup charge, which can range from $70 to $200. While much of this is work you can do on your own, it can be daunting and time-consuming.