Quite often on the Internet you’ll see companies that advertise ways for you to start over with your credit score and create a new credit file. Hey, if you have bad credit, wouldn’t you want to start with a new credit profile?

To create a new credit file these companies advise that you apply for an Employer Identification Number (EIN) or Tax Identification Number (TIN) and use that in place of your social security number. This would, in theory, establish a new credit file for that specific number.

Other companies advise that you outright lie about you social security number, either by making one up or stealing it.

As you may have guessed, there’s a problem with this method that they’re advertising: it’s illegal, and, if you’re caught, you’ll spend time in jail for deception. These companies selling this information are in violation of the Credit Reform Act - and they know it.

“But,” I hear you say, “I don’t have to legally provide my Social Security number to acquire credit!” If you thought this, you would be mistaken. While it’s true that you do not have to provide your social security number to be considered for credit (or, in fact, to be considered for anything), it is not illegal for an organization to disqualify you for not providing one.

In other words, if you’re looking to start from a clean slate, stop looking. You’re not going to find your miracle here.

The only legal way to repair damaged credit is to work it off over time: pay off your debts, keep your accounts in good standing, and build your score by using credit responsibly.

Tags: new credit file, illegal credit scam, employer identification number, tax identification number