You might have heard about something called instant credit repair. There are companies that claim to be able to improve your credit instantly, with a completely clean credit report. Unfortunately, in this tough economy, there are many people who would want to take advantage of such a service, but be warned that this is just a scam.
The scam runs a couple different ways, but mainly these services just get you to obtain an Employer Identification Number, or EIN, which is a form of tax ID meant for businesses. If you were a sole proprietor for example, and have an employee or other tax reason to file your for your business separately, you need to get an EIN. These credit scam companies however will tell you to get an EIN and start using that as your social security number.
This is not only not going to work, but it’s technically illegal. You can’t have more than one social security number, and to only list a new EIN on a credit form, instead of your social security number, is a form of fraud. If you are granted credit using a new number, but have bad credit under a social security number you haven’t given them, they can pull your credit away from you at any time. And using such a number to qualify for a mortgage or secured loan is against the law and can subject you to penalties.
Obviously instant credit repair is a really great fantasy, but it does not exist. There really is no way around your bad credit report by hiding it, getting a new number, signing up under someone else’s credit (hopefully no one else is dumb enough to let your credit ruin theirs too!). Credit repair takes time, and you can get there legally by following the right steps, not chasing after instant credit repair that doesn’t exist.