Credit repair companies do a brisk business targeting people who are frustrated with their credit scores and willing to pay for help. Some of them deliver real value. Others charge hundreds of dollars for work you are fully allowed to do yourself for free. The Federal Trade Commission (FTC) receives thousands of complaints about credit repair companies every year, and the most common theme is that customers paid upfront and got nothing in return. Knowing the right questions to ask before you sign anything is the single best protection you have. These are the ones that matter most.

Is this company registered and bonded in my state?

The Credit Repair Organizations Act (CROA) is a federal law that governs credit repair companies operating in the United States. Under CROA, credit repair companies are required to provide you with a written contract, a three-day cancellation right, and a clear description of services before collecting any payment. Many states go further and require credit repair companies to register with the state attorney general’s office and maintain a surety bond. Ask directly whether the company is registered in your state and request proof. A company that cannot answer this question cleanly is not one you want to do business with.

What specifically are you going to do for my credit, and how long will it take?

A legitimate credit repair company should be able to give you a specific description of the actions they will take on your behalf. Disputing inaccurate items on your credit report is the core service. If a company is vague about what they actually do or promises to remove all negative items regardless of whether they are accurate, that is a significant problem. Accurate negative information, such as a late payment that actually happened, cannot be legally removed before its time. It stays on your report for seven years under the Fair Credit Reporting Act (FCRA). Any company that promises otherwise is either misleading you or planning to use tactics that may cause you more harm than good down the line.

Do you charge upfront fees?

Under CROA, credit repair companies are prohibited from charging you before they have performed the services promised. This rule exists because the upfront fee model is the mechanism most commonly used by companies that disappear after collecting payment. A company that insists on payment before doing any work is violating federal law. Ask this question directly and watch how they respond. Some companies try to frame a setup or consultation fee as something separate from the service fee. That framing does not hold up under CROA. If money changes hands before services are delivered, the law has been broken.

Can you show me a sample contract before I commit to anything?

A legitimate credit repair company will have a written contract ready and will not pressure you to sign it on the spot. The contract must include the total cost of services, a description of the services to be performed, how long the process will take, and any guarantees being made. Read the guarantees section carefully. Phrases like “results not guaranteed” buried after bold claims like “remove all negative items” are a pattern worth noting. You have the right under CROA to cancel the contract within three business days of signing without any penalty. A company that pushes back on this right or downplays it is not operating by the rules.

What can you do that I cannot do myself for free?

This is the most important question on the list and the one most people never think to ask. Disputing inaccurate items on your credit report is something you are legally entitled to do yourself at no cost through the Annual Credit Report website. Each of the three major credit bureaus, Equifax, Experian, and TransUnion, is required to investigate disputes you submit directly and respond within 30 days. The Consumer Financial Protection Bureau (CFPB) has free step-by-step guides for disputing errors without paying anyone. A credit repair company is worth the cost only if you genuinely do not have the time or confidence to handle the process yourself, not because they have access to tools or channels that you do not.

Are you going to create a new credit identity for me?

If a company offers to create a new credit profile for you using a different identifier, walk away immediately. This practice is called credit privacy number (CPN) fraud, and it is a federal crime. Companies that pitch this approach frame it as a legal workaround, but the Social Security Administration and the FTC are both clear that using any number other than your Social Security number to apply for credit is fraudulent. Consumers who have gone through this process have been prosecuted alongside the companies that sold the service to them. The FTC’s consumer guide on credit repair scams has a plain-language breakdown of what red flag pitches look like.

Can I see reviews from real clients and a history of complaints?

Search the company’s name on the Better Business Bureau website and check their complaint history before agreeing to anything. Also search their name alongside terms like “complaint,” “scam,” and “review” to see what surfaces independently. A company with a long history of unresolved complaints or one that does not show up in any verifiable business directory is worth approaching with significant caution. Legitimate credit repair companies have a track record you can check. They will also be able to provide references from past clients if you ask.

What happens if I am not satisfied with the results?

Ask directly what the company’s refund or satisfaction policy is and get the answer in writing inside the contract. Some companies offer a money-back guarantee for the most recent month of service if you are not satisfied. Others have no refund policy at all. Knowing this before you sign tells you a lot about how confident the company is in its own work. A company that refuses to put any satisfaction terms in writing is signaling that it does not expect to deliver results worth standing behind.

Have you been subject to any legal action by the FTC or state regulators?

You are allowed to ask this directly. You are also allowed to check it yourself. The FTC’s database of legal actions is publicly searchable and includes cases against credit repair companies. Your state attorney general’s website is another place to check for enforcement actions. A company that has been the subject of regulatory action and is still operating may have cleaned up its practices, but that history is relevant information when you are deciding whether to hand over your financial documents and monthly fees.

The best outcome from doing this research is that you find a company that passes every question on this list and delivers a genuinely useful service. The second-best outcome is that you do enough research to handle credit repair vetting on your own terms, either by finding a trustworthy company or by deciding to manage the dispute process yourself. Both outcomes are worth the time it takes to ask.