Posted by Shawn J. Dostie on January 04, 2003 at 22:35:27:
What does that mean? Do you work for a special finance company like AMN, or a bank, auction, etc…?
Regards,
Shawn
P.S. What part of FL?
Getting a 2nd credit file - Posted by Mike
Posted by Mike on January 04, 2003 at 15:08:59:
Hi. I’ve come across some info on the net pertaining to setting up a 2nd credit file. Supposedly, this system will legally create new credit file in your name that is not related to your existing file. Obviously, this would be great to give poor credit buyers a new start and ultimately get them financed for one of my rehabs.
However, I am, of course, rather skeptical of a claim that one could essentially create a new identity for themselves. Does anyone know if this is legal or even possible?
Thanks.
Re: Getting a 2nd credit file - Posted by eric-fl
Posted by eric-fl on January 06, 2003 at 16:24:38:
It’s not that hard. You get an EIN from the IRS, using form ss-4. This is a unique, 9 digit number, for the sole purpose of having a number to identify a legal entity, such as a corporation, for tax purposes, much like, hmmm, a social security number. Then, you start to build credit under that number, just like you did under your soc… get a secured credit card, maybe a department store card or two, buy something, pay it off immediately, and so on.
Obviously, there’s probably more than one instance of most people’s names, so having two of the same name out there with different number and credit profiles won’t raise any numbers.
It’s not even that big of a deal, if you don’t make one out of it. When people ask for your soc, give them your ein instead. If you ever get pressed for whether or not it’s your soc, just say “no, it’s an EIN”. Invariably, they’ll ask what that is, to which you answer “it’s a number given upon request by the IRS for business purposes, to use in lieu of your SSN.” That’s always been good enough for me.
Now, I’ve not used EIN’s to establish alternate credit, but know people who have, and haven’t had an issue with it. I don’t know if it’s “fraudulent” or not, I suppose it would be if you used it to obtain credit that you had no intention of repaying. Just like taking a house subject-to the underlying loan is also fraudulent, if you then never make the seller’s payments.
A lot of times, it’s the way you use an instrument, rather than the instrument itself, that determines legality. Think about it - do IBM, Xerox, Enron, and Texaco do business in the names of, and obtain credit in the names of, the SSN’s of their CxO officers and board members? Of course not. It’s perfectly legal to establish an entity under an EIN, and obtain credit in the name of that entity. Just don’t do it, (or anything) with fraudelent intent.
Re: Getting a 2nd credit file - Posted by Gib
Posted by Gib on January 04, 2003 at 20:00:12:
As has already been pointed out, this is illegal. Even if it weren’t and someone obtained a new credit file, it would not only be free of derogatory info, but also free of any positive tradelines. In the time it would take to establish good credit, one could have spent that time much more effectively cleaning up the original file.
There are many way to use the laws enacted by the federal and state governments to your advantage and not have to worry about how you are going to please your new cell mate “Bubba”.
If you wish to learn more about credit repair, I would suggest you visit creditinfocenter.com or the discussion forum at creditnet.com
Gib
Re: Getting a 2nd credit file - Posted by James Strange
Posted by James Strange on January 04, 2003 at 19:28:05:
It is a good way to get a free vacation all meals included, a semi-private room with a room mate who just might find you very sexy.
See what the FTC has to say about it.
Re: Getting a 2nd credit file - Posted by Michael
Posted by Michael on January 04, 2003 at 18:46:03:
It’s totally and without question in violation of federal law. No one may have two identities for the purpose of obtaining credit.
Re: Getting a 2nd credit file - Posted by Brian
Posted by Brian on January 04, 2003 at 15:51:51:
Aside from the obvious ethical issues with it, I think it would be considered a type of fraud.
In my job I review credit bureaus all day long for those interested in purchasing automobiles. All three major credit bureaus have built in safeguards to help prevent just this type of fraud.
Re: Getting a 2nd credit file - Posted by Ron
Posted by Ron on January 04, 2003 at 15:24:43:
I have not heard of this before, but look forward to any feedback on this post.
Re: Getting a 2nd credit file - Posted by Gib
Posted by Gib on January 07, 2003 at 17:38:42:
An EIN number is NOT given to be used in lieu of a SS#. It is used for corporate purposes, so if you are obtaining credit under a corporate name, it’s perfectly legal. If a credit app asks for a SS# and you use an EIN instead, you risk going to jail PERIOD. It is fraud.
Gib
Nice to see anothe F&I guy - Posted by Shawn J. Dostie
Posted by Shawn J. Dostie on January 04, 2003 at 21:56:10:
Where are you located?
Shawn(OH)
Re: Getting a 2nd credit file - Posted by Brian
Posted by Brian on January 04, 2003 at 19:26:11:
I should clarify my previous post…
I did not mean to infer that the credit bureaus can identify all fraudulent credit files. What I meant to relate with the posting is that creating a 2nd file legally is a contradiction.
Re: some things to consider - Posted by tang-0-rang
Posted by tang-0-rang on January 04, 2003 at 18:04:54:
Brian,
I agree with your statement as to the ethical question of creating a new credit file, but I would like to mention …
From my own research on this subject I read somewhere that there are 350 million credit reports on file to date…but only 175-200 million adults (18 and older) in the U.S.!!! the info I read stated that more false credit files are created by accident than those who do it by intent. One of the techniques use by some are those who use their childrens S.S.C.#'s fruadulantly and buy all sorts of things and either pay or not pay.
anyway thats what I found.
thanks for your time
Todd Williamson…(CO)
Re: Nice to see anothe F&I guy - Posted by Brian
Posted by Brian on January 04, 2003 at 22:20:03:
Florida
I work in the wholesale side of the financial services business.