“Bad credit gone overnight” says Website. But can they do it?

The ads promise that you can get a new credit report overnight. Not just a repaired one, with bad credit eliminated, but a brand new report with no previous entries! Not only that, but this system is said to use.“ The very same credit secrets that celebrities use!” Great, but what, exactly are these people going to do? What do you get for the $30-40 you have to pay for the service? Can you really just start over with a new credit report overnight? Can you get rid of judgments, personal ankruptcy filings, and late payments?

One Website is run by someone who says that they worked for one of the major credit bureaus for more than twenty years. This person claims to have learned “secrets” of credit repair that the bureaus don’t want you to know. For $38, they’ll fix it for you. The technique offered is one that actually creates a new and separate account for you that is totally independent of your old account. This system apparently has you create your new report using an Employer Identification Number instead of a Social Security number, which is the traditional way that the credit bureaus keep track of individual credit reports.

The theory of this is that by establishing a new report, which can be done “instantly”, you can have your old debt forgotten and you can establish new credit immediately. The Website is full of glowing reports from satisfied customers who claim that they have obtained mortgages, credit cards and auto loans after having participated in this “secret” process. Does it work?

There are several problems with this “system”, which is a complete waste of money. You can use an Employer Identification Number to establish a record, but you will have to provide a Social Security number in order to obtain an Employer Identification Number. Unless you provide a fraudulent Social Security number, the credit bureaus will eventually figure out that the two different credit records belong to the same person. Once they do that, your prior bankruptcy, judgment or other financial problems will show up on both reports, leaving you exactly where you were before.

Another problem is that a blank record is almost as useless as a bad record. Even if this “system” worked as advertised, you’d have a problem. If you have a new record, then there is no history of any financial transactions. With no history, you will not be able to obtain any loans. No one is going to give you an auto loan or a mortgage without some sort of prior credit history. You’ve got to have something in your past that justifies having a loan issued to you.

This, like most similar offers, is a scam. The only way that you can repair a history of bad debt is to start, today, to pay your bills in full and on time.

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