Free Annual Credit Report

There are tons of companies out there that say that they can completely wipe out your debt and fix your free annual credit report and repair your negative credit history. While, challenging your credit report is legal, creating a brand-new credit report is not and you should pay attention to any company that says that they can do this for you. Despite that fact, there are new scam artists that are saying that they can create a new credit report and history for you in 30 days. Do not fall victim to these statements as they against the law and can actually hurt your free annual credit report as well..

These ‘credit repair’ companies make their profit by selling info on how consumers can replace federal employee id numbers (EINs) or taxpayer identification numbers for their own social security number and use this to build up a new credit report history. These companies call this process file segregation and claim that it is a legal way of restoring your free credit report. However, anyone that knows the knows that using a false id number to apply for credit is a felony and can face jail time for using this in attempts to repair their credit.

Another practice that these credit repair companies may try is to instruct consumers to use a different first or last name to apply for a driver’s license. This, again, is illegal and can put the person performing the act behind bars.

While it is acceptable that a consumer would want to repair their poor credit history and create a new credit file, people should exercise caution when approaching companies that advertise a magic credit fix. As the saying goes, if it sounds too good to be true, then it is (certainly in the world of free credit reports and credit repair). Falsifying any information to correct your negative credit history is a felony and should be avoided, period.