What Is Credit Repair?

Credit repair is the process of identifying and disputing inaccurate or outdated information on your credit reports to improve your score. This might include errors like accounts that don’t belong to you, incorrect balances, or outdated delinquencies.

While credit repair services often charge a fee to do this on your behalf, everything they do is something you can legally do yourself, for free.

But here’s the catch: if your credit struggles stem from a lack of positive history (rather than inaccurate data), then credit repair isn’t the right solution at all.

A Better Option: Credit Building

Instead of fixing old problems, credit building focuses on creating a positive credit history. Tools like credit builder products, secured cards, and rent/utility reporting can steadily improve your credit history through on-time payments, without needing to take on traditional debt.

Why Credit Repair Services Often Fail

Many services charge $50–$150/month to dispute items, sometimes even valid ones. These disputes may give a temporary boost, but once denied, the negative marks return.

In 2025, the CFPB forced Lexington Law and CreditRepair.com to refund $1.8 billion after misleading millions of customers with empty promises. These companies often offer no lasting results and can drain money better spent paying down debt or investing in real credit-building tools. To Summarize:

• Credit repair is reactive—trying to fix what’s already on your report.

• Credit building is a proactive process—creating a strong credit profile through responsible financial habits.

Bottom Line

If you’re looking to improve your credit, think long-term. Skip the shortcuts and focus on building good financial habits that will stick. Credit builder tools and on-time payments offer real, lasting progress, without the false promises and costly detours of most credit repair services.