Credit Repair

Browse through our series of informational articles pertaining to Credit Repair. These articles will help you better understand what credit repair is and the process.

Need to fix your credit score? You’re not alone

According to Bloomberg News columnist John F. Wasik, a credit score of more than 750 typically means you will get the lowest finance rates on purchases like mortgages and automobiles. Anything less than that could force you to have to pay higher interest rates or settle for less than the best terms.
myFICO® reports that the median credit score in the U.S. is 723 meaning half of all Americans have a credit score of less than 723. When factoring in the number of people with credit scores between 723 and 750, the majority of Americans have credit scores that are less than ideal.
And increased interest rates are not the only consequence of a lower credit score. The credit crunch has caused lenders to be much more cautious with their lending practices. In years past, people with sub 600 credit scores could be still get approved for credit, even if it was restricted to non-traditional mortgage loans and high interest credit cards. Today, lenders are no longer willing to extend credit to higher risk individuals. Many people with bad credit are now unable to get approved for loans because of their low credit scores.
Fortunately for those with lower credit scores, there is hope. A growing number of Americans are discovering steps they can take to legally fix their credit reports.
Thousands have fixed their credit scores
The credit reporting system is not perfect. Credit reporting errors, statistical assumptions, and obsolete data all contribute to a system that makes it look like responsible people who can be counted on to pay their bills are not worthy of credit.
If you are in a position where your credit score is making you look like a higher credit risk than you really are, you may be able to improve your credit score by fixing your credit.
The Fair Credit Reporting Act gives you the right to dispute any items in your credit reports you feel may be inaccurate, untimely, misleading, biased, incomplete or unverifiable. In essence, you have the right to dispute the questionable negative items in your credit reports you feel are giving lenders an unfair impression of your credit worthiness.
You can work to fix your credit on your own or with the assistance of a professional credit repair firm like Venture Credit Solutions. Since 2017, VCS has been helping clients dispute the questionable negative items in their credit reports and has produced results time and time again.

Fix Your Credit For Free, but at What Cost?

Your right to fix your credit is protected by law under the Fair Credit Reporting Act (FCRA), and other Federal legislation meant to ensure that consumers are treated fairly by creditors and credit bureaus. This is the good news: that it is possible to fix your credit legally — and do it for free. The question that remains, however, is what will be the actual cost of repairing your own credit? The answer might surprise you.
Cost #1: Time
Most people aren’t particularly interested in learning the ins and outs of credit law, but the fact is you could spend hours trying to decipher the laws you’ll need to cite when drafting dispute letters. Online templates are available, but how do you know that you’ve picked a letter that will be effective for your particular situation?
After you’ve drafted a letter you hope will work, next comes hours of letter writing as you dispute negative items line by line with each of the credit bureaus. Accurate record keeping is essential, so plan to dedicate a good amount of time to sorting, filing and keeping track of correspondence.
You also have to take into consideration the trips you’ll have to make to the post office; communication with credit bureaus should be in writing, return receipt requested, which could mean additional hours standing in line waiting to mail your dispute letters. All of this time adds up, and you’d probably rather be doing something else.
Cost #2: Mistakes
If you didn’t write an effective dispute letter, you may just find that those negative items on your credit report didn’t budge. What do you do next when the letters haven’t worked? You’ll have to go back to the books and start your legal research and letter writing all over again.
If your letters were written correctly, are you sure that you got the timing right? Timing can be everything in credit repair, and if you dispute too many items at once you could put the credit bureaus on alert. Your file could get extra attention — and not the good kind. Letters have to be spaced correctly, not too many and not too few, but you might not know what the best timing is to produce the optimal results.
Cost #3: Back to square one… or worse
For some people who are dedicated to doing “home credit repair” and all the work that goes into it, the outcome might be just what they were hoping for — a better credit score. Then there are the many more who are left scratching their heads after all their hard work because months later they still haven’t seen an improvement. This means they have to rethink their strategy and start the process from square one. The final category includes the people who are worse off than when they started — those who see their credit scores drop as a result of their efforts.
One common mistake that can result in a huge credit setback occurs when someone attempting to repair his or her own credit inadvertently “re-ages” an account. Making a payment on an old debt that was just about to drop off your credit report can “restart the clock,” meaning that the statute of limitations resets itself from the date of last activity (your well intentioned payment). This is one way a negative item that actually didn’t contribute much to your low score because of its age could become a “new” item with a big impact.
Credit repair is something you can do yourself, but the real question is whether you should do it by yourself. Credit laws are complicated, and if you don’t know what you’re doing, trying to repair your credit on your own could leave you in an even bigger credit dilemma than when you began.

Can I Fix My Credit Legally?

There are a lot of credit repair companies that try to convince you that they can repair your credit within a short period of time and that make guarantees about what they can remove off of your credit report. This can confuse you when you try to determine who is a legitimate credit repair company and which companies are credit repair scams. A company that uses illegal means such as file segregation could cost you a lot of money and can cause harm. Make sure that you educate yourself on what your rights are and what legitimate credit repair companies can do for you.
Without the FCRA, you did not have any legal support for fixing your credit reports. The Fair Credit Reporting Act was created because the FTC recognized that there was a need for people to be able to correct errors on their credit reports. Victims of identity theft and people with inaccurate items were in an unfortunate position because the credit bureaus sell your credit report information to businesses or individuals such as insurance companies, employers, landlords, and possible creditors.
It can be an embarrassing and disappointing experience to be denied a loan based on inaccurate information on your credit report. Disputing a negative item on your credit report is much like pleading “not guilty” to the credit bureaus. They are then required by law to investigate your dispute and determine if it can be proven that the item should be listed on your reports.
What credit repair scams may not tell you is that you can fix your credit legally by contacting the credit bureaus yourself. You also have the option to utilize the experience and knowledge of a legal credit repair company to assist you. Whichever method you choose, it is completely legal to fix errors on your credit report.
Disputing inaccurate and unverifiable information allows you the opportunity to take control of your credit reports and fix your credit score. Venture Credit Solutions can help you fix credit and we also offer tips on techniques for you to improve your credit score. If you are interested in working with Venture Credit Solutions, or learning more about our credit report repair services sign up today.

Avoiding Credit Repair Scams

Fraudulent credit repair organizations have long been the target of FTC investigations. Here are ways to avoid unethical credit repair companies:
Beware of credit repair services that request fees in advance
At Venture Credit Solutions, you pay only after services have been rendered.
Beware of credit repair services that don’t disclose your rights
Consumers have the right to attempt credit repair on their own. Venture Credit Solutions offers its legal services to those clients who prefer having legal professionals help them manage their credit concerns and creditor interventions. The Fair Credit Reporting Act outlines your rights as a consumer in this regard.
Beware of credit repair services that advocate “new” identities
It is unlawful to create a “new” identity by applying for an Employer Identification Number (EIN) to replace ones Social Security Number. File segregation, i.e. establishing a new credit report with a falsified social security number, is a serious crime that can result in fines or imprisonment.
Beware of credit repair firms that misrepresent their expertise
It is unethical for credit repair companies to claim that they will remove items from your credit reports. The truth is that only data furnishers or credit bureaus themselves can make such changes. For decades, Venture Credit Solutions Firm has helped its clients to direct the right questions about their credit to the appropriate recipients. As a result, significant credit report revisions have often followed.
Beware of companies that imply FTC endorsement
The FTC does not endorse any business. If a credit repair organization implies FTC endorsement, proceed with caution.

Four reasons to clean your credit

Having a clean credit report and an accurate and good credit score is very important in today’s economy. Because of the Fair Credit Reporting Act, you have the right to review your credit report and ensure that all of the information is timely and accurate. This is a wise thing to do in order to make sure your credit report and credit score truly reflect your credit history. There are many reasons to clean your credit report, four of which are listed here.
Reason #1: Clean Credit Usually Means Lower Interest Rates
Lower interest rates on credit cards, loans, etc. are a very important reason for any consumer to clean their credit report. Interest rates are generally based on your credit score, which is calculated according to the positive and negative listings on your credit report. A cleaner credit report typically results in a higher credit score and a lower interest rate offer for you. Lower interest rates save you money on credit card purchases or loan payments which is a savings that can add up very quickly.
Reason #2:Clean Credit Reports Make for a Higher Rate of Loan Approval
Because of the state of our economy, more and more people are getting turned down for home loans, car loans, home improvement loans and more every day. A good way to ensure that you get the loan you are applying for is to make sure your credit report is clean and accurate. This is important for anyone intending to apply for a loan. It is an unfair but true fact that people get turned down for loans based on inaccurate information that is found on their credit reports. This information can be disputed and, if proven inaccurate, can be removed from your credit report, typically raising your credit score and increasing your chances of getting approved for a loan.
Reason #3: Employers Like a Clean Credit Report
There are many jobs available for people with high credit scores that are out of reach for people with low credit scores. This is an essential reason to clean your credit. Many jobs that require employees have access to financial information, handle money, or even sell items also require that the person applying for the job not have a bad credit score. This is a safety factor for many businesses. Taking the steps to clean your credit will ensure you don’t get turned down for a job based on your credit rating.
Reason #4: Clean Credit Feels Good
Having a low credit score has an impact on the self-esteem and confidence of many people. Having a low level of confidence can affect many aspects of your life. Work to clean your credit and improve your credit rating either by yourself or with the help of a credit repair firm and keep low credit from impacting your confidence and happiness.

What is credit repair?

Ask 10 people how they define credit repair and you will likely get 10 different answers. Some people feel credit repair is managing your money and making timely payments so your credit score improves over time. Others feel it is the process of disputing questionable credit listings with the credit bureaus. Others still, equate credit repair to illegal tactics such as file segregation. Finally, based on our experiences talking to consumers with credit problems, some people feel that a credit repair service is the same as credit counseling, debt consolidation, or debt settlement services.
Because there are so many definitions of credit repair, and no perfect definition that satisfies everyone, it would be a disservice to our clients to say we offer credit repair services without saying exactly what that means. By providing our own definition of credit repair based on the services Venture Credit Solutions provides, we are being careful not to mislead anyone.
So what credit repair services does Venture Credit Solutions provide?
Venture Credit Solutions believes in fair credit reports for all consumers, that’s why we cover a wide range of services to meet every individual’s unique situation.

Should consumers try credit repair on their own?

This really depends on you and the amount of time you’re willing to allocate toward repairing your credit. While disputing items on your credit reports should be easy, getting results can often be time consuming, difficult, complex and infuriating.
Many consumers are not able to dedicate the proper amount of time to study effective credit repair methods and apply principles learned.
Also, credit repair is often much more than simply sending dispute letters to the credit bureaus. Sometimes it becomes necessary to do more than simply ask the credit bureaus to perform an investigation. Dealing with creditors, collections agencies and the courts may be required to repair your credit reports. It is important to know how to deal with these individual entities.
Restoring your own credit is like repairing your own transmission or representing yourself in court; you can certainly do it (and you have the legal right), but you must decide if you are willing to take the time and endure the possible frustration of doing it yourself. In the same way, you have the legal right to represent yourself in court, but it isn’t always the best idea.

Should consumers try credit repair on their own?

This really depends on you and the amount of time you’re willing to allocate toward repairing your credit. While disputing items on your credit reports should be easy, getting results can often be time consuming, difficult, complex and infuriating.
Many consumers are not able to dedicate the proper amount of time to study effective credit repair methods and apply principles learned.
Also, credit repair is often much more than simply sending dispute letters to the credit bureaus. Sometimes it becomes necessary to do more than simply ask the credit bureaus to perform an investigation. Dealing with creditors, collections agencies and the courts may be required to repair your credit reports. It is important to know how to deal with these individual entities.
Restoring your own credit is like repairing your own transmission or representing yourself in court; you can certainly do it (and you have the legal right), but you must decide if you are willing to take the time and endure the possible frustration of doing it yourself. In the same way, you have the legal right to represent yourself in court, but it isn’t always the best idea.

Fast and Easy Credit Repair.

Are you shopping for a home or applying for student loans? If so, good credit is essential to securing the best interest rate. If you need fast credit repair, consider the tips below. They can give your credit score the jump-start it needs.
Pay your bills ahead of schedule.
Sometimes, fast credit repair is as simple as a schedule adjustment. Paying your bills weeks in advance is a great way to save on interest payments and reduce your debt-to-income ratio. Stay ahead of the curve by shifting your payments.
Learn about credit utilization.
Staying within your credit limit isn’t the only way to maintain a healthy score. credit utilization – or the amount of debt owed on credit cards vs. the total credit limit-should never be more than 25 percent. For example, if you can charge up to $20,000 on your credit cards collectively, you should never owe more than $5,000- on those accounts. The same principle goes for individual cards. Keep an eye on these utilization ratios to keep your credit in good standing. If you are overextended on one card, consider a balance transfer to even things out.
Diversify your accounts.
Highlight your ability to work with different types of credit. If the majority of your accounts are revolving (e.g., credit cards), consider applying for an auto loan, specialty store account, or home mortgage. Broadening your credit mix is likely to strengthen your credit along the way.
Spot the errors.
Errors and unfairly reported information can negatively impact your credit. Order a free copy of your credit report and highlight these items. Contact your creditors and point out any lingering issues. If you need help, contact one of our legal experts for a free consultation and analysis. Improper credit reporting is illegal, and fast credit repair depends on fast action.
Ask for a goodwill deletion.
Even if a negative item is legitimate, there could still be hope for your credit score. Call your creditor and ask for a goodwill deletion. Many companies make exceptions for long-time customers with a positive payment history.
Good credit is important, so take action today. Fast credit repair could lead to a brighter future.

Fixing Your Credit After a Divorce

A divorce wreaks havoc on a person’s emotions and personal well-being, but it is the financial hardships of a divorce that sometimes take even longer to overcome. Even the most amicable of divorces can lead to payments being missed and dings ending up on both people’s credit reports. But when the fallout from a divorce is at its worst, judgments, foreclosures, and bankruptcies can all come into play, and can all destroy the credit ratings of both people involved.
Divorce is one of the many scenarios that illustrate the basic unfairness of the credit reporting system. When a couple separates, the debts they have incurred as a partnership are divvied up among each party so that only one person is responsible for making the house payment, car payment, credit card payments, etc. The problem is that, even when a judge assigns the debts to each person, the creditors involved do not respect that fact the only one person is accountable for each debt.
When trying to collect a debt, creditors will try to hold both parties responsible. So, for example, even if a judge has declared that one party is wholly responsible for paying off a credit card balance, when payments start coming in late, the credit card company may start adding negative listings to both people’s credit reports. It is not uncommon for someone who has gone through a divorce to suddenly start seeing negative marks appear on their credit reports for accounts that they are not responsible for and were not even aware were in poor standing.
When this starts happening, the credit scores of both parties can take a significant dive, but that is not the worst of it. In some cases, one party will completely give up on paying their debts and go so far as to declare bankruptcy which leads creditors to begin hounding the other party to repay all debts. As a result, the person who has worked hard to manage the debts they were supposed to be responsible for following the divorce, has seen their credit score crash through no fault of their own and may face losing their home or maybe having to file for bankruptcy as well because the debts of two people are simply too much to handle.
It is because of financial disasters like this that a divorce has been labeled one of the five credit killers in the book Credit Revolution: Path of the Smart Consumer.

How does credit repair help fix my credit score?

We live in a society of “if it’s in writing, it must be true”. This certainly applies to your credit score, as well. Lenders, insurance companies and potential employers make quick judgments about you based on your credit score. This score is a reflection of how you manage your finances and whether you pay your bills on time. Because of the importance of this number to lenders, you want your credit score to be the very best it can be.
Your FICO® Score uses a formula that takes into account several factors. Payment history makes up 35%, total debt you owe is 30%, the length of your credit history accounts for 15%, new credit 10%, and type of credit used accounts for 10%. You are given extra points based on good bill-paying practices and you have points taken away for paying bills late, using credit cards to their limit, and of course, major financial upsets such as bankruptcy.
Furthermore, recent late payments will have a greater negative effect on your score than late payments that occurred many years ago. And the longer your payments are past due, the greater the negative effect on your score. For example, your score will not be as badly damaged with one payment that is 30 days late, compared to several payments that are 60 days or more late.
A major problem with credit scoring is that it is not unusual to find negative information on your credit reports that is inaccurate. This inaccurate information will lower your score, which in turn, can result in higher interest rates on new loans and higher premiums from insurance companies.
The good news is that you do have the ability to question any information on your credit reports that you feel may be inaccurate, untimely, misleading, incomplete, ambiguous, unverifiable, biased or unclear and removing this questionable negative information can add extra points to your credit score, putting you in a better negotiating position when seeking new loans. Ideally, you want your credit score to be 760 or higher to receive the best rates available.
Disputing the questionable negative information on your credit reports can be a time consuming and daunting task. Unless you are familiar with the process of how to correct errors and negative information, you may find yourself in over your head. By turning to the experts at Venture Credit Solutions, you will have the leading provider of credit correction services on your side.

How to Clean Your Credit Report Fast?

We’ve all seen and heard the ads that target individuals with bad credit; “Have bad credit? We’ll approve your loan fast no matter what your credit history”. What these ads neglect to mention is that you don’t have to be labeled a “bad credit risk”. Their goal is to get you into a high interest rate loan so they can make as much off of you as possible. This leaves those with less than stellar credit believing that bad credit is just something you must live with, along with the consequences that go along with having a poor credit score. For sub-prime lenders, targeting consumers with low credit scores can be profitable business for them, so they don’t want you to know that you can take action to improve your credit score.
Many Americans believe bad credit is like your crazy uncle you just have to put up with. The FICO® Score uses a formula that takes into account several factors with the largest share, 35%, being your payment history. Therefore, if you were negligent in paying bills on time, were not able to make your minimum credit card payments, or lost your job and fell behind on your mortgage payments, they believe you will have to bite the bullet and accept your poor credit score until enough time has passed.
The 7 year rule applies for most negative information that is listed on your credit report. Late payments of bills and credit cards, collections, civil claims, and foreclosures can be on your credit report for up to 7 years. For bankruptcy, the listing can stay on your report for 10 years. That is a long time to just sit back and wait for the grey skies to clear. And while you are waiting, you are likely paying hundreds to thousands of dollars extra in interest charges that may have been avoidable. Don’t let lenders fool you into believing you are stuck. Acknowledge that you do have control over your credit report and then take the appropriate action to improve your credit score so that you will be the one in control of your financial well-being.
You can start restoring your credit today by paying all bills on time, keeping credit card balances well below the maximum limit, and not missing any payments. Even if you are dealing with the 7 year rule, the FICO® Score gives more weight to recent problems and less weight to older issues. Therefore, starting good practices today will benefit you within a short amount of time.
When reviewing your credit report, you will likely find that there are negative listings pulling down your score that you don’t feel should be there. Studies have shown that over 75% of credit reports contain inaccurate information. The Fair Credit Reporting Act gives you the legal right to question any information on your credit reports that you feel may be inaccurate, untimely, misleading, incomplete, ambiguous, unverifiable, biased or unclear. Rest assured, you can confidently and legally fight to clean up your credit report.
The most common means of fighting these questionable listings is through sending letters to the credit bureaus that are reporting the negative information. But that is just one of the many options you can use to clean up bad credit. Venture Credit Solutions credit repair services include credit bureau disputes along with goodwill interventions, debt validation requests, and a number of addition services designed to help clients make the most of their credit score.