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Many people with bad or less than perfect credit scour the internet to find an easy way to get out of it. Once you start down the road of bad credit things seems to snowball and quickly get out of control. Next thing you know, you are looking into all kinds of desperate alternatives. One of the most tempting alternatives offered out there are websites that sell “kits” to help you create a new credit “identity” and start fresh, leaving the perilous snowball behind forever. They typically charge anywhere from $19 to $49 for their “kit”. They promise that you can use this new “identity” to obtain loans and credit cards and overcome your bad credit rating.
Well, the adage that says if it sounds too good to be true, it probably is applies here. Anything worth doing is worth doing right. The websites that sell these “kits” promising to let you in on little known “secrets” are nothing but scams. In The people who sell information promising a ìnew credit identity” are scam artists who are in violation of the Credit Repair Organizations Act, which is federal legislation that bars anyone from claiming that consumers can create a new credit identity. In fact, several years ago, the Federal Trade Commission went after many sellers of this information, shutting down their websites and email scams, and made those who had not already spent the money reimburse their customers.
So, can you really create a new credit file? The answer is absolutely not. However, you are probably wondering how sellers of this information claim that you can create a new credit file. Without spending a dime, we will give you the same information they will give you and we will tell you why it will not work.
When you apply for a credit card, loan or any type of financing you are asked for your social security number. Your social security number is the main way that the three credit bureaus, Experian, Equifax and Trans Union and many creditors and employers, etc., keep track of you and separate your credit file and personal information from everybody else. Therefore, to create a new credit identity or file, one would need a new social security number. Since it is almost impossible to get a new social security number from the Social Security Administration, those who sell “create a new identity” information advise you to apply to the federal government for an Employer Identification Number (EIN) or Taxpayer Identification Number (TIN) and use that number in place of your social security number when you apply for a loan or credit card. They might also advise you to make up a social security number or steal one from someone else by ordering a birth certificate of someone close to your age that is deceased.
The problem with doing any of the above in that it is a felony to lie on a credit or loan application. If you decide to try this, the mortgage lender, credit card Company, auto finance company or whomever you are trying to defraud will most likely catch it, and if they do, they have the right to turn the whole matter over to your local district attorney for prosecution. First offenders convicted of bank fraud usually get a two-year prison sentence.
If you have a bad credit rating that is preventing you from getting the credit and loans you need, why not start improving your credit rating the legal way? Congress enacted legislation in the 1970s that gives all consumers the right to a fresh start; the right to build an excellent credit rating and not have to suffer their entire lives for mistakes made long ago. This legislation is called the Fair Credit Reporting Act.
Using this legislation and other techniques you can build an excellent credit rating in your own name so that one day you can get quickly approved for financing whenever you need it. As we mentioned before, anything worth doing, is worth doing right and normally that means putting a little elbow grease behind it, an application of self-discipline and a touch of motivation to get back on the right track. And once your credit is in good standing you can reap the rewards of better finance rates and quicker, easier loan approval!