{"id":352543,"date":"2016-04-04T10:42:05","date_gmt":"2016-04-04T15:42:05","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/credit-banking-finance\/how-do-credit-repair-companies-get-paid.html"},"modified":"2024-01-25T07:55:33","modified_gmt":"2024-01-25T12:55:33","slug":"how-do-credit-repair-companies-get-paid","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance\/how-do-credit-repair-companies-get-paid.html","title":{"rendered":"How Do Credit Repair Companies Get Paid?"},"content":{"rendered":"\n
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How Do Credit Repair Companies Get Paid?<\/h1>\n
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\n By Olivia Wathne, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The recession of 2008-2010 left a wide path of financial destruction for a lot of people. Many turned to credit repair companies to help get themselves back on track and increase their credit score<\/a>. Qualifying for a credit card or renting an apartment may pose challenges if you have a poor credit score. Most people feel intimidated when it comes to repairing bad credit and hire a credit repair company or credit counseling service to help.<\/p>\r\n

As nice as it sounds to have a company looking to save consumers money, keep in mind this isn’t charity. With the exception of some nonprofit credit counselors, most of the credit repair industry is less about helping others than it is about making money. That money, it turns out, is coming from the very consumers using their credit repair services. How much are people paying to have someone else help them clean up their credit files?<\/p>\r\n

What do credit repair companies do?<\/h2>\r\n

Credit repair companies are businesses that help people enhance their credit histories. They focus on finding and fixing negative credit information, like late payments, on credit reports to raise a person’s credit rating. Unlike credit counseling, which helps with debt management, credit repair aims to improve credit reports. <\/p>\r\n

Some credit repair companies may use telemarketing to reach out to consumers, but it’s essential to be cautious about scams. These services also differ from debt management, which is about planning to repay existing debts. Understanding credit problems, credit limits, and implementing ways to improve your credit score are key aspects of what credit repair companies do.<\/p>\r\n

How much do credit repair companies charge?<\/h2>\r\n

Credit repair service fees can seem all over the place. Part of the reason for this is that there are a few different ways the companies operate. The most common structures are:<\/p>\r\n