★ CREDIT REPAIR · LEGIT vs SCAM

The repair industry is half-scam. Here's how to spot it.

Some Canadian credit repair companies are legitimate (licensed, non-profit credit counsellors, insolvency trustees). Many are predatory — charging $1,500+ for things you can do free. Here's the line between them.

★ THE LIMITS ★

What can credit repair actually do?

WHAT NO ONE CAN DO

  • Remove accurate negative information (it falls off in 6-7 yrs)
  • Erase a real bankruptcy from your record
  • Force a creditor to forgive an actual debt
  • Add positive history that didn't happen
  • Create or sell a "new credit file"
  • Guarantee a specific score increase
★ RED FLAG / GREEN FLAG CHECKLIST ★

Spot the scam in 30 seconds

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"Guaranteed score boost in 30 days"

NO legitimate service can guarantee specific point increases. Score changes depend on what's on YOUR report.

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Upfront fees before any work done

Most provinces (BC, AB, ON, MB, QC) prohibit upfront fees. Legit companies bill after results.

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"Get a new SIN" or "Credit Privacy Number"

CRIMINAL. Identity fraud. CPN scams imported from US — using someone else's number is theft.

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"Don't contact the credit bureau yourself"

Major red flag. You always have the right (and ability) to contact bureaus directly — for FREE.

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Vague pricing · monthly subscriptions forever

Legit credit repair is finite — once disputes settle, work is done. Endless monthly fees = scam.

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"Remove ALL negative items"

Accurate negative items CANNOT be removed by anyone — they fall off after 6-7 years per the law.

Licensed Insolvency Trustee (LIT)

Federally regulated. Files consumer proposals + bankruptcies. Free initial consultation. Real legal remedy.

Non-profit credit counsellor

Credit Counselling Canada members. Free advice. Can negotiate Debt Management Plans (DMP) with creditors.

DIY disputes (free)

You can do everything a credit repair company can do, for free. See our [[disputing-errors]] guide.

Provincially licensed repair company

BC, ON, MB, AB, QC require licensing. Verify license # on provincial consumer affairs registry before paying.

★ LEGITIMATE PATHS ★

Free or low-cost alternatives

★ FREE

DIY Disputes

Use our sample dispute letter generator. Bureaus must respond within 30 days. Cost: postage.

Best for: 1-5 specific errors on your report
★ FREE

Non-Profit Credit Counsellor

Credit Counselling Canada members offer free advice. Can set up Debt Management Plans negotiating lower rates with creditors.

Best for: drowning in card debt, need structure
★ $0 INTAKE

Licensed Insolvency Trustee

Free initial consultation. Files consumer proposals (settle for 30-70% of debt) or bankruptcies. Federally regulated.

Best for: debt over $10k, garnishment, ready for legal remedy
★ PAID · VERIFY FIRST

Licensed Repair Company

If you really want help, verify their provincial license number BEFORE paying anything. Pay-after-results models only.

Best for: complex situations, no time for DIY
★ FINAL WARNING ★

The "Credit Privacy Number" scam

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"Credit Privacy Numbers" (CPN) are a US-imported fraud.

These services tell you to use a 9-digit number (often a deceased person's SIN or a randomly generated one) as your "new SIN" to apply for credit. This is identity fraud. Canadian penalties include fines up to $1M and 14 years imprisonment under the Criminal Code. No legitimate company offers this. Walk away.