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The TRUTH About Creating An Alternate Credit File
-by Terry Price
(C) Copyright
Terry Price All Rights Reserved
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What if I told you there was a way
you could solve all your bad credit problems overnight by creating a brand
new credit file in 24hrs - would you be interested? And what if I told you
this program was 100% legal and even backed by the federal government -
would that sound too good to be true?
Well... you're right. It is too good to be true but these types of ads are now surfacing again after the
Federal Trade Commission launched "Operation New ID Bad Idea" over 8
years ago. This operation targeted (and took down) over 50 credit repair
organizations and companies selling consumers both pamphlets and services
giving them a brand new credit file under the pretense it was 100% legal
and in some cases even claimed it to be a "government sponsored" program!
The con was simple. Companies would target consumers with bad credit and offer to create a brand new credit
file for them by substituting an Employer Identification Number (EIN)
for their Social Security Number (SSN) along with a new address. EIN's were
obtained from the Internal Revenue Service on behalf of the consumer.
With the EIN and a new address the companies would either have the
consumer apply for credit with the "new information" or the company would apply
for them. When the creditor would run the application it would automatically
create a new credit file because the computer would be unable to find the
consumer in the database due to the new address and SSN.
While there is some dispute among privacy experts as to whether or not this is legal, the FTC's actions at the
time were not up for debate. Companies were advertising and luring in
consumers in order to have them falsify credit applications by providing new
information such as their address and SSN in order to obtain credit. This
was a direct violation of the Truth in Lending Act (TILA) and worse yet, the
companies were advertising to consumers that this was 100% legal and in some
cases claiming it was a government
sponsored program. As you'll hear me say often "In reality, nothing could be
further from the truth".
Privacy experts will argue that using an EIN or 9 digit PIN (simply a made up number) in place of ones'
SSN is completely legal since creditors are on shaky ground asking for your SSN in
the first place. In regards to the truth in lending act they will argue
that one has to exhibit "an intent to defraud" a creditor. My question "Is
concealing ones' adverse credit history intent in itself?" While I am not an
Attorney on the matter of credit law I can conclude that if a consumer was to
create an alternate credit file using the EIN or PIN method they better be
darn sure they never have a problem paying their bills. If they do, they
most likely would find themselves in a courtroom with a case involving credit
fraud. Which brings me to my next
topic.
How To Create An Alternate Credit File Legally
Most consumers are unaware that in addition to consumer credit reports, both Experian and Equifax own and
operate business credit reporting services. By creating a business
credit profile a consumer can now
create an alternate credit file legally. While some creditors such as
residential utility companies will not
allow you to use business credit in place of personal credit, we have had
numerous clients who have successfully used business credit to obtain credit
cards, automotive leases and loans. This technique (although controversial)
can be very effective when done properly.
The basics of building business credit involve 1.) Setting up the proper structure for your business
(i.e. Corporation, LLC, etc.). 2.) Obtaining an EIN as well as a DUNS
number (Dunn and Bradstreet). 3.)
Borrow and/or buy products and services from vendors who reports to business
credit reporting agencies such as Experian, Equifax and Dunn &
Bradstreet. While building business credit requires time just like personal
credit, don't get discouraged. Remember, when you set out to begin
building your business credit you are starting with a clean slate. This is
when it becomes imperative that one learn from the mistakes of their past.
Remember, in the credit world those who do not learn from their past are
(inevitably) doomed to repeat it.
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The "CREDIT SECRETS BIBLE"
by Terry Price has been in print since 1994 and is published by Consumer Publishing Group.
For more information on the "CREDIT SECRETS BIBLE" you may visit
the official company website here
for the Home Study Course with Audio CD or the Instant Digital Download for immediate access! |
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