Is It Possible To Create A New Credit File?

Many people will try to sell you information on how to create a new credit file. This is a carrot of hope dangled in front of millions of Americans that have poor credit and would like a way to start over that does not lead through bankruptcy. However, you cannot legally create a new credit file and those that tell you otherwise are actually breaking a specific law known as the Credit Repair Organizations Act.

The Illegality of It All

Equifax, Trans Union and Experian are the three credit reporting agencies responsible for tracking credit scores in the United States.  They do so through the use of your Social Security Number. When you look at the advice offered by these scam artists that promise you can create a new credit file, you will see that they ask you to try and apply for a new social security number. In worse cases, they will actually tell you to apply for an employment identification number (EIN) and use that in place of your social security number in order to create a new credit file.

You can certainly try this, but keep in mind that it is illegal to knowingly make a false statement on financial forms. Using your EIN in place of your SSN is knowingly making a false statement in the eyes of the law. If you get caught, you will be prosecuted.

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