Credit repair companies: what they can and cannot do

Updated October 13, 2026 · Checked against official sources

The quick answer

A credit repair company can only do what you can do yourself for free: dispute mistakes on your credit report. By law it cannot charge you before the work is done, it has to give you a written contract, and you can cancel within three business days. Nobody can remove true information from your report.

What the law says

They cannot charge you before they finish the work they promised.
They have to give you a written contract that spells out the work, the cost and how long it takes.
You can cancel within three business days of signing, for free.
They cannot tell you to lie on a credit application or to the credit bureaus.

Red flags

They want money up front.
They promise to remove everything, even items that are true.
They tell you not to contact the credit bureaus yourself.
They offer a new credit identity or a CPN. That is a scam, and using one can be a crime.
They dispute everything on your report, true or not.

Doing it yourself

	Credit repair company	Doing it yourself
Cost	Often a monthly fee	Free
Who sees the letters	Often only them	You read every one
How long the bureaus take	Usually 30 days	Usually 30 days
Can remove true items	No	No

The step by step guide covers everything a credit repair company would do.

Common questions

Is credit repair worth it?

For most people, no. Everything they can legally do, you can do yourself for free in about the same time.

What is a CPN?

A credit privacy number, sold as a way to get a fresh credit file. It is a scam, and using one to apply for credit can be a federal crime.

Is ZungiDill a credit repair company?

No. ZungiDill is a tool you use yourself. You decide what is wrong and you send your own letters.

Do it from your phone

Open your report in ZungiDill, tap what is wrong, and it writes the letter and reminds you when the answer is due.

Sources

General information, not legal advice.