Your Questions About Credit Repair Organizations Act

How can i fix my credit? is it expensive?

I would really like to fix my credit but i dont know who to contact.


Mike Sireci answers:

Credit Restoration is a hot topic right now. With the economy slowly collapsing in on itself, people by the millions are using this service. It is a legitimate option for most people. However, you get what you pay for. Remember also that there are certain laws that the credit repair companies must comply with. For example, most credit repair companies cannot charge up front for credit repair. Some can, depending on how they are structured as a business and/or how they offer their particular program. Many credit repair companies will not charge for credit restoration but charge you instead for consulting fees. Perfectly legal according to the Credit Repair Organizations Act, but I am always concerned about a company that has to operate this way instead of just being in strict compliance with the CROA.

There are a lot of credit repair companies out there. MOST are not worth the time and effort involved in using them. A lot of them are people who have purchased a do-it-yourself kit from the internet and had moderate success with fixing their own credit. So now they think they can fix anyone’s credit. Without the proper training and experience, these people can do more damage to your credit report than good.

Read my article about how to determine a good credit repair company from a less than reputable one. The link is provided below. It will give you 10 things to consider when dealing with a credit repair company.

As to the cost, it is usually not going to be cheap. People who charge $200 will only give you $200 worth of service. Usually they fill out a form letter and mail it in for you. Sometimes it works, and sometimes it doesn’t. A good company will usually charge around $1000 or so. A small price to pay for saving literally tens of thousands of dollars on a 30 year fixed mortgage.

As to whom to contact, we can’t really give you that information in this forum as it is in violation of the community guidelines. However, if you are observant, you can find a good company relatively quickly.

If you have any further questions regarding this or any other credit issue, you may feel free to contact me at

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