Part of the How to Rebuild Credit After Incarceration (2026 Step-by-Step Guide) series
They’re Lying to You. Here’s How to Spot It.
Your credit is damaged. You need it fixed fast because you need an apartment, a car, or just a chance. Someone slides into your Instagram DMs or texts you: “I can remove bankruptcies, judgments, and collections in 30 days. $500 upfront. Guaranteed results.”
It’s a scam.
Not “probably” a scam. Not “sometimes” a scam. It’s always a scam.
Credit repair companies prey on people coming home from incarceration because they know you’re desperate, don’t understand credit systems, and have limited options. They take your money, do nothing you couldn’t do yourself for free, and sometimes make your situation worse by committing fraud in your name.
This guide teaches you:
- How to recognize credit repair scams instantly
- What scammers actually say (real examples from 2026)
- Why “CPN numbers” and “credit sweeps” are illegal
- Your legal rights under federal law
- What to do if you’ve already been scammed
- The real, legal way to fix your credit (without paying anyone)
Your credit can be fixed. But not by these people. And not with their methods.
⚠️ INSTANT SCAM WARNING SIGNS
If someone promises ANY of the following, it’s a scam. Walk away immediately:
❌ “I can remove accurate negative information”
Bankruptcies, judgments, late payments, and collections that are accurate CANNOT be legally removed before 7-10 years. Anyone claiming otherwise is lying.
❌ “Pay me upfront before I do anything”
Federal law (Credit Repair Organizations Act) prohibits charging fees before services are delivered. Legitimate services don’t ask for money first.
❌ “I can get you a new credit identity / CPN number”
This is identity fraud. Using a fake Social Security Number is a federal crime punishable by prison time and fines.
❌ “Guaranteed results in 30-60 days”
Credit repair takes 3-18 months depending on your situation. No one can guarantee timeline or results.
❌ “I have insider access to credit bureaus”
No one has “hacks” or “loopholes” to delete accurate information. Credit bureaus don’t take bribes or have secret deletion methods.
❌ “Don’t contact the credit bureaus yourself”
Legitimate services encourage you to understand and manage your own credit. Scammers want you dependent and confused.
❌ “Our AI system removes negative items automatically”
In 2026, scammers use AI buzzwords to sound cutting-edge. There is no AI that can hack credit bureaus or bypass legal requirements.
If you hear any of these phrases, hang up, delete the message, or walk away. You’re being targeted.
What Credit Repair Scammers Actually Say (2026 Examples)
Scammers evolve their pitches constantly. Here’s what they’re saying in 2026 to sound legitimate.
Instagram DMs and Text Messages
Example 1:
“Hey! I noticed you’re working on rebuilding. I help people like you remove collections, charge-offs, and late payments in 45-60 days. My clients see 100+ point increases. $400 gets you started. DM me ‘READY’ if interested.”
Red flags:
- Unsolicited outreach
- Vague “people like you” (targeting formerly incarcerated individuals)
- Specific timeline promise (45-60 days)
- Upfront payment required
- No company name or credentials
Example 2:
“🚨 CREDIT SWEEP SPECIAL 🚨 Remove ALL negatives in 30 days. Bankruptcies, repos, judgments—GONE. $650 one-time fee. I only take 10 clients per month. Spots filling fast. Cash App or Zelle only.”
Red flags:
- “Credit sweep” (common scam term for illegal disputes)
- Removes “ALL negatives” (impossible if accurate)
- Urgency tactics (“spots filling fast”)
- Cash App/Zelle only (untraceable payment methods)
- No refund policy or contract
Example 3:
“I can get you a CPN (Credit Privacy Number) so you can start fresh. New credit file = no background check issues. Costs $300. You’ll be approved for apartments, cars, everything. Legal and safe.”
Red flags:
- CPN is identity fraud, not legal
- “Start fresh” implies new identity
- Bypassing background checks is illegal
- Flat lie about legality
Social Media Ads and Websites
Example ad copy:
“Bad credit? No problem. Our AI-powered credit repair platform uses advanced algorithms to find loopholes in bureau reporting systems. Remove negatives in as little as 21 days. Backed by 15+ years of experience. As seen on [fake media logos]. Click here for free consultation.”
Red flags:
- AI/algorithm buzzwords (2026 trend)
- “Loopholes” (there are none)
- Fake media endorsements (“As seen on…”)
- 21-day promise
- “Free consultation” that leads to high-pressure sales
Example website language:
“We work with insider connections at Equifax, Experian, and TransUnion to remove items other companies can’t touch. Our proprietary system has deleted over 50,000 negative items for clients nationwide. 98% success rate. $1,200 one-time investment.”
Red flags:
- Claims of “insider connections” (false)
- Proprietary system (meaningless)
- Unverifiable success statistics
- High upfront cost with no performance guarantee
Phone Calls and Voicemails
Example script:
“This is Marcus from Credit Solutions Pro. We’ve been trying to reach you about your credit report. We’ve identified several errors that are costing you hundreds of points. Call us back at [number] within 24 hours to lock in our promotional rate of $299. After that, it goes up to $599.”
Red flags:
- Urgency and deadline pressure
- “Identified errors” without you sharing your report
- Promotional pricing tactics
- No way to verify legitimacy
[IMAGE: Screenshot-style graphic showing real scam DM examples with red flag annotations]
The AI-Era Credit Repair Scams (2026-Specific)
Scammers are now using artificial intelligence buzzwords to sound legitimate and high-tech. Here’s what to watch for.
“AI Credit Repair” Red Flags
❌ “Our AI analyzes your credit and automatically files disputes”
Translation: They’re mass-disputing everything hoping something sticks. This doesn’t work and can flag your account for fraud.
❌ “Machine learning algorithms find hidden bureau errors”
Translation: They’re running the same free credit report you can pull yourself and charging you for it.
❌ “AI chatbot handles all your credit bureau communication”
Translation: They’re using templated form letters anyone can access online for free.
❌ “Neural network identifies loopholes in FCRA compliance”
Translation: Meaningless tech jargon. There are no loopholes.
Fake Trust Signals (2026 Version)
Scammers create elaborate fake trust signals:
Fake review sites:
- Websites that look like Trustpilot or BBB but with different URLs
- 5-star reviews with generic names and stock photos
- No negative reviews (real businesses always have some complaints)
Fake credentials:
- Made-up certifications (“Certified Credit Analyst”)
- Fake accreditation badges
- Photoshopped endorsements from real organizations
AI-generated fake testimonials:
- Videos of people who don’t exist (deepfakes)
- AI-written success stories that sound too perfect
- Before/after credit report screenshots (easily faked)
How to verify legitimacy:
- Check BBB.org directly (not through their website)
- Google the company name + “scam” or “reviews”
- Ask for state licensing (if required in your state)
- Request references from real clients you can contact
CPN Numbers and “New Identity” Scams — Why This Is a Felony
This is one of the most dangerous scams targeting people with criminal records because it sounds like a fresh start.
What Scammers Tell You
“A CPN (Credit Privacy Number) is a legal alternative to your Social Security Number. Use it to apply for credit, apartments, jobs—basically start your credit file from scratch. It’s 100% legal and used by celebrities and politicians.”
The Reality
CPN numbers are not real.
They don’t exist in any federal database. What scammers actually do:
- Steal a child’s Social Security Number (often from children of incarcerated individuals or deceased minors)
- Generate a fake 9-digit number that looks like an SSN
- Sell it to you for $200-$500 as a “CPN”
- You use it on applications thinking it’s legal
What Actually Happens
You commit identity fraud — a federal crime under 18 U.S.C. § 1028.
Penalties include:
- Up to 15 years in federal prison
- Fines up to $250,000
- Restitution to victims
- Parole/probation violations if you’re under supervision
Even if you didn’t know it was illegal, you can still be prosecuted. Ignorance is not a defense.
Other Names for the Same Scam
Scammers rebrand CPNs to avoid detection:
- SCN (Secondary Credit Number)
- Credit Profile Number
- Credit Privacy Number
- EIN (Employer Identification Number) for personal use
All of these are illegal for personal credit use.
Why People Fall for This
The pitch is designed to exploit desperation:
- “You can’t get an apartment with your record? Use a CPN.”
- “Employers keep rejecting you? CPN gives you a clean slate.”
- “Your credit is too damaged to fix? Start fresh with a CPN.”
What they don’t tell you: Landlords and employers increasingly cross-reference identity information. When your name, address, and date of birth don’t match your “CPN,” you get flagged for fraud. Now you’ve:
- Lost the apartment/job
- Committed a federal crime
- Made your reentry situation exponentially worse
What to Do Instead
Legal ways to address credit and identity concerns:
- Dispute inaccurate information on your real credit report (free)
- Build positive credit using secured cards and credit-builder loans
- Use your legal right to a “100-word statement” on your credit report explaining circumstances
- Apply for apartments/jobs that work with people with records (Second Chance employers, reentry-friendly landlords)
If someone sold you a CPN:
- Stop using it immediately
- Do not make any more applications with it
- Report the seller to the FTC (FTC.gov/complaint)
- Consult with a lawyer (many legal aid organizations help with identity fraud cases)
[INFOGRAPHIC: “CPN Scam: What It Is, Why It’s Illegal, What Happens If You Use It”]
Your Legal Rights: What Credit Repair Companies Must Do (By Law)
Federal law protects you from credit repair scams. Here’s what legitimate services are required to do.
Credit Repair Organizations Act (CROA)
✓ They CANNOT charge you before delivering services
Payment only happens after work is completed. If they ask for money upfront, they’re breaking federal law.
✓ They MUST give you a written contract
The contract must explain:
- What services they’ll provide
- How long it will take
- Total cost
- Your right to cancel
✓ You have 3 business days to cancel
After signing a contract, you can cancel for any reason within 3 days and get a full refund.
✓ They CANNOT make false claims
They can’t promise to remove accurate negative information, guarantee results, or claim special access to credit bureaus.
✓ They MUST tell you your rights
Before you sign anything, they’re required to provide a disclosure explaining you can dispute credit report errors yourself for free.
Fair Credit Reporting Act (FCRA)
✓ You can dispute errors for free
Credit bureaus (Equifax, Experian, TransUnion) must investigate disputes at no cost to you. You don’t need to pay anyone to do this.
✓ Negative information has time limits
- Most negatives: 7 years
- Bankruptcies: 10 years
- Unpaid tax liens: indefinite (until resolved)
✓ You have the right to accurate reporting
If information is wrong, you can dispute it. Bureaus must verify or remove it within 30-45 days.
What to Do If a Company Violates These Laws
Step 1: Stop payment immediately
Cancel credit card authorization, stop checks, or dispute charges with your bank.
Step 2: Document everything
Save emails, texts, contracts, receipts, and advertising materials.
Step 3: Report them
- Federal Trade Commission (FTC): FTC.gov/complaint
- Consumer Financial Protection Bureau (CFPB): ConsumerFinance.gov/complaint
- Your state Attorney General: Search “[your state] attorney general consumer protection”
Step 4: Dispute charges
Contact your credit card company or bank and explain the company violated CROA. Most banks will reverse charges if you provide documentation.
Step 5: Warn others
Leave reviews on Google, BBB, and reentry forums to prevent others from being scammed.
“Credit Sweeps” and Mass Dispute Scams
This is the most common scam in 2026 because it sounds technical and legitimate.
What Scammers Claim
“We use a legal loophole called a ‘credit sweep.’ We dispute every negative item on your report all at once. Credit bureaus can’t verify everything in 30 days, so items get deleted automatically. Costs $500-$1,500.”
Why This Doesn’t Work
The “30-day loophole” is a myth.
Credit bureaus can and do extend investigation periods if overwhelmed with disputes. Mass-disputing everything flags your file as “frivolous dispute” and they stop investigating your legitimate disputes.
You damage your own credit:
- Bureaus mark your account for potential fraud
- Legitimate disputes get ignored
- You waste months while nothing changes
- You’re out hundreds or thousands of dollars
What Actually Happens
- Scammer files disputes on every negative item (accurate or not)
- Credit bureaus investigate
- Most items are verified as accurate and stay on your report
- Scammer blames you: “You didn’t provide enough documentation” or “The bureaus are targeting you”
- They offer a “round 2” service for more money
- Cycle repeats until you’re broke
Red Flag Language for Credit Sweeps
- “Legal loophole”
- “30-day technicality”
- “Bureaus can’t verify in time”
- “100% removal guarantee”
- “Aggressive dispute strategy”
Real credit repair doesn’t involve mass-disputing everything. It involves disputing specific inaccuracies with evidence.
Predatory “Credit Monitoring” Subscriptions
Not all scams are blatant. Some trap you in expensive monthly subscriptions.
How This Works
- Free trial offer: “Monitor your credit for free for 7 days!”
- Requires credit card: “Just for verification, we won’t charge you.”
- Fine print: After 7 days, you’re automatically charged $29.99-$99.99/month
- Hard to cancel: Customer service is unreachable or makes cancellation difficult
- Provides nothing useful: Services you can get for free elsewhere
Warning Signs
- Requires credit card for “free” trial
- No clear cancellation process on website
- Monthly fee is higher than legitimate credit monitoring ($9.99-$19.99 is standard)
- Offers services you can get free elsewhere (Credit Karma, Experian free account)
What to Do Instead
Free credit monitoring tools (2026):
- Credit Karma: Free TransUnion and Equifax monitoring
- Experian (free account): Free Experian score and monitoring
- AnnualCreditReport.com: Free full credit report from all three bureaus once per year
- Many credit cards and banks: Offer free FICO score monitoring for account holders
You don’t need to pay for credit monitoring. Ever.
What to Do Instead: Real, Legal Credit Repair
Fixing your credit doesn’t require paying anyone. Here’s what actually works.
1. Dispute Errors Yourself (Free)
If information on your credit report is inaccurate:
- Pull your reports from AnnualCreditReport.com (free)
- Identify specific errors (wrong account, incorrect balance, fraud)
- Dispute directly with each credit bureau online or by mail
- Include evidence (police reports for fraud, payment receipts, identity documents)
- Bureaus must investigate within 30-45 days
This is what credit repair companies do—except they charge you $500-$2,000 for it.
2. Build Positive Credit History
The only way to improve a bad-but-accurate credit report is time + positive behavior.
Use tools designed for people rebuilding credit:
- Secured credit cards (require $200-$500 deposit, report to all bureaus)
- Credit-builder loans (save money while building credit history)
- Become an authorized user on someone else’s account (benefits from their positive history)
For step-by-step instructions, see: How to Build Credit with a Secured Card or Credit-Builder Loan (2026 Guide)
3. Use Nonprofit Credit Counseling (Free or Low-Cost)
Legitimate organizations that help with credit:
National Foundation for Credit Counseling (NFCC)
- Website: NFCC.org
- Free or low-cost credit counseling
- No upfront fees
- Helps create debt repayment plans
- Certified counselors
Credit.org
- Nonprofit credit counseling
- Offers debt management plans
- Financial education resources
Local reentry programs
- Many reentry nonprofits partner with credit counselors
- Often free for participants
What they DON’T do:
- Promise to remove accurate negative information
- Charge high upfront fees
- Make guarantees about scores or timelines
4. Wait (Yes, Really)
Most negative information expires:
- Late payments: 7 years
- Collections: 7 years
- Charge-offs: 7 years
- Bankruptcies: 7-10 years
After the time limit, negative items automatically disappear. While you wait:
- Build new positive history
- Make all current payments on time
- Keep credit utilization low
There is no legal way to speed this up. Anyone claiming otherwise is lying.
[INFOGRAPHIC: “Scam vs. Legit Credit Repair” side-by-side comparison checklist]
If You’ve Already Been Scammed: What to Do Now
Don’t panic. Follow these steps to minimize damage and recover your money.
Step 1: Stop All Payments Immediately
If you paid by:
- Credit card: Call your card issuer and dispute the charges (you have 60 days from statement date)
- Bank transfer: Contact your bank immediately to attempt reversal (success depends on timing)
- Cash App, Venmo, Zelle: File disputes through the app (harder to recover, but try)
- Check: Contact your bank to stop payment if it hasn’t cleared
What to say: “I paid for credit repair services that violated federal law by charging upfront fees and making false promises. I’m disputing these charges under the Credit Repair Organizations Act.”
Step 2: Document Everything
Gather all evidence:
- Text messages and DMs
- Email correspondence
- Contracts or agreements
- Receipts and payment confirmations
- Advertisements or social media posts
- Before/after credit reports (if they provided any)
Take screenshots of:
- Social media profiles
- Websites
- Reviews
- Any promises made in writing
Why this matters: Evidence is crucial for disputes, complaints, and potential legal action.
Step 3: Report the Scam
File complaints with:
Federal Trade Commission (FTC)
- Website: FTC.gov/complaint or ReportFraud.ftc.gov
- Phone: 1-877-FTC-HELP (1-877-382-4357)
- Handles consumer fraud cases nationally
Consumer Financial Protection Bureau (CFPB)
- Website: ConsumerFinance.gov/complaint
- Handles financial services violations
Your State Attorney General
- Search “[your state] attorney general consumer protection”
- Many states have restitution programs for scam victims
Better Business Bureau (BBB)
- Website: BBB.org
- File a complaint and check if others reported the same company
Local police (if applicable)
- If the scammer used your identity information fraudulently
- If they threatened you
Why report? Even if you don’t get your money back, reports help shut down scammers and prevent others from being victimized.
Step 4: Check Your Credit Reports
Scammers sometimes:
- File disputes without your knowledge (messes up your credit)
- Steal your identity information for other fraud
- Use your information to open accounts in your name
What to do:
- Pull all three credit reports (AnnualCreditReport.com)
- Look for unfamiliar accounts or inquiries
- Dispute any fraud immediately
- Place a fraud alert or credit freeze if identity theft occurred
Fraud alert: Free, lasts 1 year, makes it harder for identity thieves to open accounts
Credit freeze: Free, blocks all new credit applications until you unfreeze (most secure option)
Step 5: Fix Any Damage
If the scammer filed frivolous disputes in your name:
- Contact credit bureaus and explain you did not authorize disputes
- Provide documentation showing you were scammed
- Request your file be unflagged for “frivolous disputes”
If they used a CPN or fake identity:
- STOP using it immediately
- Consult with a lawyer (legal aid if you can’t afford one)
- Consider reporting yourself to prevent worse consequences later
If they misrepresented your situation to creditors:
- Contact each creditor directly
- Explain you were scammed
- Provide evidence of fraud
[INFOGRAPHIC: “What to Do If You’ve Been Scammed — 5 Steps” visual flowchart]
Red Flags Checklist: Is This Company Legitimate?
Use this quick checklist before engaging with any credit repair service.
❌ SCAM RED FLAGS
- Asks for payment before providing services
- Promises specific results or timelines
- Claims to remove accurate negative information
- Mentions CPNs, “new identity,” or “loopholes”
- Only accepts untraceable payments (Cash App, Zelle, crypto)
- Pressures you to act immediately
- Found you via unsolicited DM, text, or call
- Has no physical address or verifiable business information
- Tells you not to contact credit bureaus directly
- Uses AI/tech jargon to sound sophisticated
- Has only 5-star reviews or fake testimonials
- Won’t provide a written contract
If you checked ANY of these boxes, it’s a scam.
✓ LEGITIMATE SERVICE INDICATORS
- Registered business with state/federal authorities
- Provides a written contract explaining all terms
- Charges fees AFTER services are rendered
- Explains your legal rights upfront (CROA disclosure)
- Allows 3-day cancellation period
- Encourages you to dispute errors yourself for free
- Has realistic explanations of what they can/can’t do
- Transparent about costs and timelines
- Verifiable reviews on independent platforms (BBB, Google)
- Physical address and customer service contact info
- Licensed (if required in your state)
- Affiliated with legitimate nonprofits (NFCC, etc.)
Even if a company seems legitimate, you can still do everything they do yourself for free.
The Bottom Line: No One Can Fix Your Credit Faster or Better Than You
Here’s what you need to remember:
✓ Accurate negative information cannot be legally removed before 7-10 years. Anyone claiming otherwise is lying.
✓ Disputing errors is free. You don’t need to pay anyone to do what you can do yourself.
✓ Building positive credit takes 12-18 months. There are no shortcuts, loopholes, or hacks.
✓ CPNs and “new identities” are federal crimes. They’re not legal alternatives—they’re identity fraud.
✓ You have legal rights. Credit repair companies must follow CROA. If they don’t, report them.
✓ Free resources exist. Nonprofit credit counselors, free credit monitoring, and government agencies will help you for free.
The credit repair industry exists because people are desperate and don’t know their rights. Now you know. You don’t need them.
Your Next Steps
If you’re starting your credit rebuild:
Read the full strategy guide: How to Rebuild Credit After Incarceration (2026 Step-by-Step Guide)
If you need tools to build credit safely:
Learn how to use secured cards and credit-builder loans: How to Build Credit with a Secured Card or Credit-Builder Loan (2026 Guide)
If you need free help:
- Visit NFCC.org for nonprofit credit counseling
- Pull your free credit reports at AnnualCreditReport.com
- Report scams at FTC.gov/complaint
If you were scammed:
- Follow the 5-step recovery process above
- Don’t feel stupid—scammers are professionals at manipulation
- Help others by reporting and reviewing
Your credit can be fixed. Just not by people asking for money upfront, promising impossible results, or pushing you toward illegal shortcuts.
The real way is slower. It’s free. And it actually works.