Fast Credit Repair! Killer Secrets To Put You Legally Ahead Of The Credit Reporting Agencies!

Years ago, after some financial mistakes, I heard about a guy in a suburb of my home town who for a few hundred dollars could wipe my credit file clean. Start over new, fast credit repair, no late payments or outstanding collections. It would take 24 hours to set it up. Sounds good, right? I didn’t believe it at first, but I called the guy to check it out. He assured me the program was completely legal and supported by the federal government. It sounded too good to be true.
Well, it was! When his office turned out to be a spare room over his garage, I decided to go a different route and hired a lawyer. I heard a few months later that the guy had been shut down and the people he had “helped” were being investigated for fraud. I dodged a bullet! A few months ago I began to see ads in the local newspaper advertising fast credit repair and just out of curiosity I called again. Guess what…years after this guy was shut down similar companies are popping up trying to sell the same idea. Get a new ID and a fast credit repair. I asked if this was legal and they told me that the government actually “sponsored” the program.

Well, I did the research this time. I checked with the IRS and FTC and found out what is legal and what isn’t. Here is what happens: a company will target anyone with bad credit and offer them a whole new credit file. The company will apply with the IRS for an Employer Identification Number (EIN) on behalf of the consumer. They give the IRS a “business name” and address not at all associated with the consumer. They then apply for credit using the EIN in place of a social security number. Since there is no history for the EIN, viola; a fast credit repair and you now have a brand new credit file.

It seems like the government sponsors this program, because you get the EIN from the IRS, but nothing could be further from the truth. You’ve probably seen an EIN before if you’ve ever filed your taxes. Check on your W2. The company you work for has an EIN. Every business operating legally does. If you start a business, you’ll have to get one as well. The issue is when a consumer gives false information to the IRS, like the name and address. This is fraud.

Some privacy experts would argue that separating the consumer and new EIN is legal. The FTC disagrees. They call this file segregation and they say it’s illegal. Since they’re the government, I wouldn’t mess with them.

There is an upside in this whole thing. Say you want to start a home business and would like to get that Costco business American Express card. You legally can. To start with the business entity you create will be tied to your personal credit. Hiring an accountant or book keeper to do the bills for the business is a great idea. It saves you time and builds a credit history for the business. Even if you are late on your personal mortgage or credit card bills, the business will become a separate entity and be eligible for credit cards and other credit.