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Having bad credit is something that can hinder you. You will find it becomes harder to apply for things such as credit cards. So of course you would want to fix your credit score as quickly and effectively as possible. But one of the major things you have to look out for these days are scams. People will claim that they can fix your credit, and it will take no time at all. It may sound nice to have a quick fix, but beware. You need to do your research. Today we are going to tell you about a specific type of fraud. That is called file segregation.
The Troubles of File Segregation
This method may help you end up with bad credit plus a criminal record! Isn’t that what you set out to have when you asked them to fix your credit? Probably not. Here is how this new method works (we will explain in a bit how you can end up in trouble with the feds).
The agency you use will tell you how you can acquire an employee ID number from the IRS. This is much like a social security number, but often handed out to those who work as household help. You will then be able to use this number to apply for new credit. You will also have to apply using a different address and phone number (ding, ding, ding…alarm bells!), probably one of a relative or friend. This is done so that your previous credit history will not be traced to this exact account. So then you can use this new credit to build up good credit, and then you can get a new credit card which will be paid off quickly.
Well, sounds good, except for the fact that this is ID fraud. They are telling you that it is alright to commit a felony in order to achieve your goal. Not really something that a strong, upstanding company should suggest right? This is worse because they are claiming that their methods are completely legal. Yet, you will be the one in trouble with the law, because you use the ID to your advantage. They, however, had no involvement with using the ID. You paid them for information, which they can easily say was legal. They could even prove it but issuing out some legit papers that show an ulterior method. So unfortunately you are the only one who finds themselves in trouble.
So What Can You Do?
The best thing you can do to fix your credit is make on time payments regularly. You also need to focus on paying off that old debt. Those are the most important things. You really should not pay to do something that you can do for free on your own. You need to monitor your credit and make sure you catch errors. Bu knowing what is on your credit report, you can make sure you get things under control before they get out of hand.
Negative information is not good. If that negative information is correct, then there really is no instant fix. You cannot snap your fingers and make bad credit disappear. Even though that is something that many companies will make you think is possible. You can find yourself slipping into trouble when you fall into the trap set by these companies. Just be aware of what is going on. You do not want to find yourself in trouble with the law. That would be even worse!
Additional Resources:
www.buzzle.com/editorials/1-19-2006-86780.asp - Credit Repair Myths Exposed
www.godebtfree.com/education/creditfacts.htm - The Truth About Credit Repair
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