For $50, they'll purport to fix all of your credit difficulties. One Business that offers to repair your bad credit within a day is administered by someone who claims that they worked for one of the major credit bureaus for longer than 20 years. The mechanism advertised is one that essentially creates a brand new and separate account for you that is fully independent of your previous account. Quick credit fix agencies claim to have learned "secrets" of credit repair that the credit bureaus do not want you to know. Details are not widely available, 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 personal credit reports.

Do these systems genuinely work, or are they just a financial scam? The theory of this method of "credit repair" is that by creating a brand new report, which can be done "immediately", you can have your old debt eliminated and you can establish new credit right away. The Institutions that advertise such services are full of glowing reports from satisfied customers who say that they have obtained mortgages, credit cards and car loans after having taken part in this "secret" strategy.
 

There are a couple of concerns with this credit fix method, which is a complete waste of cash.

Even if this "procedure" worked as marketed, you'd have a problem. You've got to have something in your past that justifies having a loan issued to you. No one is going to offer you a car or truck loan or a mortgage without some sort of earlier financial history. A new credit report is nearly as useless as a bad one. If you have a brand new credit report, then there is no track record of any financial transactions. With no history, you will not be able to obtain any loans.

In time, the bureaus will figure out who you are and your prior personal bankruptcy, judgment or other debt matters will show up on both records, leaving you exactly where you were before. You may use an Employer Identification Number to establish a new history, but you will have to provide a Social Security number so that you might acquire an Employer Identification Number. Your Social Security Number is unique; it is connected to you personally. By presenting a Social Security number, the credit agencies will swiftly figure out that the two unique records belong to the same individual.

The only way that you can repair a history of harmful debt is to begin, today, to pay your bills in full and in good time. The advertisement to clear up a bad financial history almost immediately, like most similar advertisements, is a scam.