What is Credit Repair?

Over the course of your life, a high or low credit score can mean the difference between thousands of dollars either staying in your bank account or being paid out to lenders due to higher interest rates. So it’s important to make sure that the score that’s reported to those lenders accurately reflects the credit that you’ve built for yourself. Credit report errors are a common occurrence — an estimated 40 million Americans have them. These errors can result in a lower credit score and end up raising the interest rates that lenders offer you when you apply for a loan, or even cause you to be declined for a loan outright.

This is where credit repair comes in. Credit repair is the process of detecting and correcting errors, or inaccurate data, on your credit report. Credit report inaccuracies can come in many forms. Here are a few examples of common errors that need to be corrected:

  • Information reported that does not belong to you due to a mix-up of name, social security number, address, employer, etc.
  • Information from an ex-spouse left over after divorce
  • Outdated information
  • Delinquencies being misreported
  • Student loan payments reported as higher than actual payment amount

There are many more types of errors that can occur, and they can result in higher interest rates and less favorable terms on credit cards, mortgage loans, auto loans and more. To remedy this, a credit repair company will follow these steps:

  • Review your credit reports from all three major credit bureaus
  • Work with you to identify any possible errors, and ask for supporting documentation from you to begin the dispute process
  • Work with the credit bureaus to determine if the item in question is an error, and if so, have it removed from your credit report

One could conceivably complete the credit repair process alone, but the regulations and time commitment make it difficult. This is why credit repair companies exist — so consumers have a reliable resource to help detect credit errors and to navigate through the guidelines put forth by the credit bureaus.

Luckily, the law is on your side due to the Fair Credit Billing Act, the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. These laws give credit repair companies the leverage that they need to make sure that your credit report is 100% accurate and fair.

It’s important to note that, despite common misconceptions, credit repair does NOT involve “fixing” or changing information on your report that is correct but might be causing a lower score. Many credit repair companies claim that they can raise your score even when the information on your report is accurate. If you’ve been late on payments or have a low score due to other financial missteps, the only way to improve your credit is to correct your behavior over the course of time and not make any further mistakes.

How does credit repair work and what does it cost?

How does credit repair work?

Credit repair refers to the process that a credit repair company goes through to remove incorrect data from your credit report. Common types of incorrect data that might appear on your credit report include, but are not limited to:

  • Identity errors, such as the incorrect address, social security number or name being listed on your report
  • Incorrect account details, such as open loans that are actually closed, incorrect credit limits or the incorrect origination date on a mortgage loan
  • Fraudulent accounts, which are the most serious, because this type of error means that someone has stolen your identity and opened up a line of credit in your name

To correct errors on your credit report, a credit repair company will generally employ the following process:

  • Obtain and review all 3 credit reports from Equifax, TransUnion and Experian
  • Work with you to identify errors that need to be disputed
  • File disputes on your behalf
  • Monitor disputes and provide you with status updates
  • Work with CRAs and credit bureaus to make sure errors are removed quickly

The outcome of correcting errors in this manner can sometimes result in a better credit score and an improvement in your ability to get loans, credit cards, automobile insurance and even new jobs.

Credit repair does NOT involve removing negative items on your report that are correct, such as late payments or maxed out credit cards.

What does it cost?

The cost associated with credit repair varies from company to company. Most credit repair companies charge anywhere between $59.95 and $99.95 per month, regardless of how many errors are fixed. This process can drag on for months, ending up costing an average of $891 and taking 8-11 months.

20/20 Credit takes a different approach from competitors, charging an initial fee of $59 and then only charging $75 per error fixed. The benefit of this model is that there are no monthly fees — you just pay per performance or only when a disputed item is corrected or removed! This approach can be up to 4X faster than the competition and much less expensive.

Working with a credit repair company often leads to a higher success rate than trying to dispute and correct inaccurate data on your credit report alone. And the process is generally well worth the investment if the credit repair agency only charges when errors are either corrected or removed. The benefit of lower interest rates and less interest paid on credit cards, mortgages and loans very often outweighs the amount of money you might spend on credit repair.


Our pricing model is simple, straightforward and affordable. It starts with a FREE credit analysis and after an $89 initial fee, you'll only be charged $89 per month.

  • $89 monthly payment
  • Personalized credit repair plan
  • Weekly updates via email
  • FCRA (Fair Credit Reporting Act) Certified data accuracy specialists
  • Unlimited error correction