How Much Does Credit Repair Cost?

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How Much Does Credit Repair Cost?

Written by Veronica Ott
Fact-checked by Caitlin Wood

How Much Does Credit Repair Cost?

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Bad Credit Credit Credit Repair

Your credit rating is an assessment of your creditworthiness as a borrower. The higher your rating, the more confident lenders are that you will be able to pay back your debts on time. Those who have a poor or limited credit history can run into many obstacles as it may prevent them from achieving their financial goals such as obtaining a car loan, mortgage, or even job offers in certain industries. Even if approved, those with bad credit will likely have to pay a higher interest rate or be susceptible to unfavourable loan conditions. 

How Will Credit Repair Help You?

Credit repair can remove negative marks from your credit history and ensure that your credit report is accurate. Items that may be corrected include:

  • Bankruptcy or claims against you that are not yours
  • Accounts that do not belong to you
  • Credit inquiries that you never made or authorized
  • Incorrect dates and personal information 
  • Debt that is not verified and cannot be validated
  • Past debt or derogatory items that should no longer be on the credit report

One thing to note is that credit repair only removes items that should not be there. All derogatory marks that are accurate, timely and verifiable cannot be removed.

How Does Credit Repair Work?

Credit repair can help you achieve your financial goals. For those looking to repair their credit, there are several options available to them, as listed below.

Do It Yourself

You can request a free credit report from TransUnion and Equifax then review your own file for any errors. This option can take time and patience as you’re likely unfamiliar with the process and will need to contact various creditors, lenders, and even the credit bureaus

Use Credit Repair Software

There are a number of software solutions that can help you repair your credit, ranging from basic to advanced. Basic software will provide you with directions on how to dispute errors found on your report and a template for a dispute letter to be sent to the credit bureaus. Advanced software is more expensive, but they have a wider range of dispute letters for different errors and can provide alerts notifying you of the progress of your dispute. Additionally, they allow you to track your credit score.

Check out what credit score you need to reach the “good” credit score range.

Hire A Credit Repair Professional

Hiring a licenced credit repair attorney to identify and make disputes on your behalf can save you a lot of time. Also, a credit repair professional can coach you on credit management to prevent future issues. However, this tends to be the most expensive alternative as these services will typically involve both a setup fee and a recurring payment.

How Much Does Credit Repair Cost?

The cost of repairing credit depends on the option you go with; it costs nothing except for time if you review your own credit file. On the other hand, credit repair software can range from $25 to $500 and hiring a licenced credit repair professional can cost up to $100 initially with monthly payments of $30 to $150. Let’s take a look at some of the more popular credit repair and credit building services in Canada below. 

ServiceDetails
Climb – Accelerator Plan-Secured savings loan that is released to you at the end of the term
-Payments reported to credit bureaus
-Setup fee of $150 to $250An interest rate of 8.99%
More Info
Spring Financial – Spring Savings Loan-Loan amount placed in trust until it is paid off
-Payments reported to credit bureaus
-Eligible for $2,500 unsecured loan at 29.8% APR after 18 on-time, full payments
Refresh Financial – Credit Builder Program-Loan held in secure trust and paid off in installments
-Payments reported to credit bureaus
More Info


Marble – Score-Up

-Product that allows for subscription payments and displays credit impact of your actions
-Payments reported to credit bureaus
-Monthly subscription ranges from $49.99 to $99.99
More Info

What To Watch Out For With Credit Repair Services

When evaluating different credit repair services, you should be wary of false promises or claims made by companies that they can remove any or all derogatory items from your credit report. It is important to remember that only negative items that are on your credit report in error can be removed. It is impossible to remove any items that are accurate, timely, and verifiable. 

Knowing your rights and how credit repairers operate are crucial in this process. Let’s take a look at a few regulations set out by the Ministry of Government and Consumer Services:

  • Credit repair services and companies must provide the consumer with a written and dated contract
  • Consumers have a ten-day cooling-off period from when they receive the contract during which they can cancel the agreement
  • Credit repairers cannot charge advance payments or fees unless they cause a material improvement to the consumer’s credit file
  • Credit repairers cannot make false claims or claim that they can cause a material improvement to the consumer’s credit file before reviewing it

Should You Pay For Credit Repair?

Whether you should pay for credit repair depends on your knowledge of consumer credit and the time that you are willing to commit to the process. Keep in mind that with time and patience you can do anything that a paid software or service can do. If you are willing to pay for software or hire a professional to save you time and energy in the credit repair process, be sure to do your due diligence and verify that they are compliant with the rules and regulations of your province or territory. 


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