Should I use a paid credit repair company?
Paid repair firms charge for what you can do for free. Here is what to know before you sign up.
This guide helps you
- Understand what credit repair firms claim to do
- Learn what they cannot lawfully achieve
- See the free alternatives that do the same work
- Spot pressure tactics and unfair fees
- Know where to turn for free, trustworthy help
6 min
What's happening
Paid 'credit repair' firms offer, for a fee, to remove negative listings, fix errors or improve your score. The important thing to understand is that anything lawful they can do, you can do yourself for free. They cannot remove information that is accurate and correctly listed, no matter what their marketing suggests.
What they cannot do
- They cannot remove a default or listing that was correctly recorded.
- They cannot change accurate repayment history.
- They cannot guarantee a specific credit score.
What they sometimes do is lodge the same free correction requests you could lodge yourself, then charge you for it.
Step by step
- Get your credit report for free and identify any genuine errors.
- Lodge a free correction with the bureau or lender, with evidence.
- For disputes, complain to AFCA for free.
- For debt and hardship, talk to a free financial counsellor.
- Only consider paid help once you understand the free options, and read any contract closely.
Watch out for
Warning signs include large upfront fees, promises to 'wipe' your file, pressure to sign quickly, and claims that only they can fix your credit. Some firms lock you into ongoing payments. If a listing is accurate, paying will not remove it. Treat bold guarantees with strong scepticism.
Where to get free help
The free alternatives cover almost everything a paid firm offers: the bureau's free correction process, AFCA for free disputes, and a free financial counsellor via the National Debt Helpline (1800 007 007). See the directory of bodies and Merion Help before paying anyone.
Key takeaways
- Anything lawful a repair firm does, you can do for free.
- They cannot remove accurate, correctly listed information.
- Watch for upfront fees, lock-in contracts and big guarantees.
- Free correction processes, AFCA and financial counsellors cover the same ground.
Frequently asked questions
Can credit repair firms remove a valid default?
No. If a default is accurate and was correctly listed, it cannot be removed on demand, regardless of any fee paid.
Is using one ever worth it?
Rarely, because the free correction process, AFCA and financial counsellors handle the same tasks at no cost. Always understand the free options first.
What are the warning signs?
Large upfront fees, promises to wipe your file, pressure to sign immediately, and claims that only they can help. These should make you cautious.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
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