Credit repairs overnight? We don’t think so

The credit repair companies offer a credit fix approach that is said to employ " The exact same credit secrets that movie stars use!" The advertisements promise not merely a fixed credit report, with adverse entries removed, but a completely new history with no prior entries! The ads are intriguing should you have problems with debt; the commercials guarantee that you can get a new credit report almost immediately. Can you get rid of judgments, personal bankruptcy filings, and late payments? Can you actually just start over with a new credit report immediately? What actors and actresses need new credit reports? What, exactly, are these companies going to do? What do you receive for the $30-40 you have to pay for the program?

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The theory of this method of "credit repair" is that by creating a completely new report, which can be accomplished "instantly", you can have your prior financial obligations removed and you can establish brand new credit immediately. Do these schemes genuinely work, or are they just a scam? The Organizations that market such services are full of rave reviews from satisfied customers who claim that they have obtained mortgages, credit cards and car or truck loans after having participated in this "secret" process.

The strategy advertised is one that actually creates a brand new and separate account for you that is completely independent of your earlier record. Details are few, but this system apparently has you create your completely new report using an Employer Identification Number instead of a Social Security number, which is the traditional way that the credit bureaus keep records of individual credit reports. Quick credit fix companies claim to have learned "tricks" of credit repair that the bureaus don't want you to know. For a small fee, they'll claim to repair any and all of your credit troubles. One Web site that offers to clear up your bad credit within a day is run by a person who alleges that they worked for one of the major credit bureaus for more than 20 years.

There are several problems with this credit fix process, which is a total waste of money.
 

Your Social Security Number is unique; it is tied to you personally. Eventually, the credit organizations will figure out who you are and your prior bankruptcy filing, judgment or other financial problems will show up on both credit reports, leaving you exactly where you were previously. You can use an Employer Identification Number to establish a credit record, but you will have to provide a Social Security number in order to obtain an Employer Identification Number. By presenting a Social Security number, the credit authorities will in time realize that the two unique credit records belong to the same individual.

Even if this "procedure" worked as marketed, you would have a mess. A blank report is nearly as worthless as a horrible record. With no history, you will not be able to qualify for any loans. You've got to have something in your past that qualifies you for having a loan issued to you. If you have a new record, then there is no history of any monetary transactions. No one is going to offer you an automobile loan or a mortgage without some sort of prior financial history.

The offer to repair bad finances overnight, like most similar promotions, is a scam. The only way that you can clear up a history of terrible debt is to start, today, to repay your bills in full and in a timely manner.