Voltage Articles

The economic troubles have led millions of people in the United States to experience a drop in their credit scores.  Experts now estimate that some 40 million people have bad credit.  This is causing problems for them in many areas of their lives.  Credit is not only used when you are trying to get a new loan, it is also used when you apply for a job or insurance.  Really bad credit can even keep you from getting rent to own homes!

Because having bad credit can make such an impact in your life, many people that find themselves in this situation are aggressively looking for solutions to their problems.  What they really want is to find a quick method that they can use to improve their credit scores.  The reality is that this just is not possible.  All legitimate credit restoration methods take time.

Sure, there are ways that you can get a new credit file, but this is completely illegal.  The technique is called file segregation and involves using an Employer Identification Number that is illegally obtains from the IRS in place of your social security number. Essentially this creates a new credit identity because there is no record on file for the EIN number.

File segregation can result in financial repercussions from the IRS, as well as serious criminal prosecution.  The reality is that the strategy breaks numerous laws.  Not only is it illegal you use an EIN for any reason other than a legitimate business, it is also illegal to make a credit application and use your EIN when it the application requests your Social Security Number.  Take things a step further  and you are committing mail fraud and wire fraud when you mail or electronically submit an application with an EIN.

The companies that sell these strategies are very intelligent.  They get the client to do all of the dirty work so that they alone fact the consequences.