Having been forced to declare bankruptcy, there are so many people who are looking for credit help, also, there are many more people who are looking to make a profit off of them. You can actually find thousands of different online advertisements and elsewhere that can promise you credit repair, but not all of them are legal. This section’s use is in order to help address the most common credit report scams so that you can be well informed. Let’s get started!
Obtaining a New Social Security Number – Many people are only permitted to have one Social Security number. It is contrary to the law to use a different Social Security number in order to create a false identity. Nevertheless, many criminals will offer this service to you at a cost. However, as it is illegal, you could very quickly get yourself into trouble.
Also, quite obviously, nobody ever seemed to wonder just where these SSNs come from. Therefore, it will be most likely that you are paying for a stolen identity. It is a perfect trick in that the thieves get the money for the transaction, whilst you get caught for scamming the SSN. It sounds silly, but many people fall for it. They might claim that this transaction is absolutely legal; but it is not!!!!
Obtaining a Federal Employer Identification Number (abbreviated as EIN or FEIN) – Basically, this is nothing more than a file segregation trick. For this trick, the criminals claim that you can obtain a federal tax ID number, as if you were a business, and end up with a clean credit record that is listed under that tax ID number. It is against the law to make use of an EIN in order to set up a false identity too. Let me also tell you that a new credit report under an EIN will not even mention a credit history. It is not very likely that a creditor would regard a new business with no credit history as a good credit risk. So it will also be a waste of time.
Challenging Everything Bad on a Credit Report – As mentioned previously, this is simply stupid. All credit agencies have to keep very precise records of negative entries on your credit history for up to seven years, and to keep records of any bankruptcies for as much as years. Sometimes truthful negative information can be reported beyond those time periods, but it is quite rare. You cannot report false negatives on your credit report without suffering some consequences. Also, if you are caught filing false claims, you can put yourself in a lot of trouble. This is a clever tactic though, and it is quite difficult to prove a negative report claim ever knowingly took place.
Keep reading! Go to our next bankruptcy recovery page: Common Credit Repair Tricks 2