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I saw this ad on craigslist and I am pretty sure it was a scam. It says that they can create a new credit file for you but getting a tax-id number and using that in place or your social on credit applications... Is that legal?

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I saw this ad on craigslist and I am pretty sure it was a scam. It says that they can create a new credit file for you but getting a tax-id number and using that in place or your social on credit applications... Is that legal?

Using an EIN in place of your SSN in order to try and repair your credit? Yea, that's illegal. You should report them.

If anyone were to actually do it, they would only be wasting their time and put themselves at risk of being prosecuted for fraud.

Edit: Is it legal? After reading this, http://aaacreditguide.com/2007/12/choosing-credit-repair-company.html It shows that doing that is illegal.

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It is NOT illegal. All businesses do this. It's only illegal if you don't have a registered business, and if you didn't, you wouldn't have an FEIN or tax id anyway.

It is however still a waste of money. You'll spend $100 or more establishing an S-corp or fictitious name as a proprietorship, then you won't have any credit anyway. You pretty much always have to co-sign for your business to get your first line which would require you to use your own credit anyway.

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It IS illegal due to the reasons that are being cited here. There was a group here in my state that was just busted for using these EIN numbers to establish credit histories and identities for illegal immigrants.

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that's a good example of using a legal process illegally. If you registered a business this is exactly how you would go about credit. Lot's of us have done this in the past for legitimate reasons. For me it didn't do much good since my own signature was crap.

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It IS illegal due to the reasons that are being cited here. There was a group here in my state that was just busted for using these EIN numbers to establish credit histories and identities for illegal immigrants.
It's a felony.the employee id # is for taxes,so your also involving the IRS rather nasty people who make their own laws.

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CleverCynic is right.

Say I want to start a business, AboveAverage LLC. I would first have to create the entity, and in NJ, I can create an entity online (in my case, I created an LLC, and I'm not going to go over the difference between an LLC, S-Corp, C-Corp, etc, but I will say that a Sole Proprietorship will require you to use your own SSN, and is pretty pointless for the purposes of business credit).

Anyway, once you create your entity, you then go to the IRS (which you can also do online) and get the F-EIN so that your entity is now it's own legal entity. Once that is done, you can open up a business checking account in that business' name. Now, in the old days, you could get a staples account, and various other tradelines with no personal guarantee. That train has pretty much left the platform; you will pretty much need a personal guarantee (PG) for getting your business credit if you want a stick of gum on credit.

There is nothing illegal about doing any of that. But the stuff you see on craigslist pretty much is.

CB has it's own business credit forum and for a time, I liked reading it...but then people started getting stupid, and I had to leave even that alone.

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CleverCynic is right.

Say I want to start a business, AboveAverage LLC. I would first have to create the entity, and in NJ, I can create an entity online (in my case, I created an LLC, and I'm not going to go over the difference between an LLC, S-Corp, C-Corp, etc, but I will say that a Sole Proprietorship will require you to use your own SSN, and is pretty pointless for the purposes of business credit).

Anyway, once you create your entity, you then go to the IRS (which you can also do online) and get the F-EIN so that your entity is now it's own legal entity. Once that is done, you can open up a business checking account in that business' name. Now, in the old days, you could get a staples account, and various other tradelines with no personal guarantee. That train has pretty much left the platform; you will pretty much need a personal guarantee (PG) for getting your business credit if you want a stick of gum on credit.

There is nothing illegal about doing any of that. But the stuff you see on craigslist pretty much is.

CB has it's own business credit forum and for a time, I liked reading it...but then people started getting stupid, and I had to leave even that alone.

Thats what i was saying and thats what their pushing because they don't have to do the time.

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I watched a video one time and the guy was saying you can actually get rid of your SSN and get a different type of ID. He claimed that the SSN was used for tracking you and the other number would not be but you gave up certain rights along with it, like SS benefits and unemployment. Not sure if the guy knew what he was talking about but I thought I heard of people doing this (not to repair credit). Not sure what they are thinking but I would guess even if you could do this you could be tracked by the new number. Anyways the guy came off to me as wacko and I never really gave it much thought.

What if you got a new SSN because of ID theft or something? Would that start your credit all over again?

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Unless it was absolutely necessary like your life counting on it, the Social Security office will NOT give you a new SS number. Ex. of changing your SS would be if you were in a witness protection program. Otherwise, there it is almost impossible to get a new SS# legally.

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Unless it was absolutely necessary like your life counting on it, the Social Security office will NOT give you a new SS number. Ex. of changing your SS would be if you were in a witness protection program. Otherwise, there it is almost impossible to get a new SS# legally.

Even then, the Government would initiate that process for you. Also, if you're not going through WP, you would have to bring mountains of evidence that changing your SSN would help in preventing harassment or abuse; like Isis says "your life counting on it" [sic].

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Even then, the Government would initiate that process for you. Also, if you're not going through WP, you would have to bring mountains of evidence that changing your SSN would help in preventing harassment or abuse; like Isis says "your life counting on it" [sic].

And if you do it to defraud you have committed a crime. All of here try to fix our credit by legal means even if some stretch the laws,creditors also do it and when they get caught they pay the fine usually.

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And if you do it to defraud you have committed a crime. All of here try to fix our credit by legal means even if some stretch the laws,creditors also do it and when they get caught they pay the fine usually.

I wasn't saying that anyone should do anything illegal. I just wondered if these were ways that people could or have "fixed" their credit. I think that I messed up and now this is how I'm going to learn about being more responsible with my finances and credit. I was more remarking on hearing about someone surrendering their SSN and wondered how easy it would be to have your SSN changed. I'm sure if you did get it changed you would probably have things linked someway or other - merged or what not.

Technically though, most people on here lie to try and clean up their credit. How many of us, myself included, have filed a dispute with the CRAs stating "No Knowledge of Account" or similar when in fact we knew what the account was and why it was on our reports.

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It's a measured risk with no evidence of anyone ever being prosecuted or sued.

Plus, "intent" is a really hard case to make. A lot of these accounts are really old.

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I wasn't saying that anyone should do anything illegal. I just wondered if these were ways that people could or have "fixed" their credit. I think that I messed up and now this is how I'm going to learn about being more responsible with my finances and credit. I was more remarking on hearing about someone surrendering their SSN and wondered how easy it would be to have your SSN changed. I'm sure if you did get it changed you would probably have things linked someway or other - merged or what not.

Technically though, most people on here lie to try and clean up their credit. How many of us, myself included, have filed a dispute with the CRAs stating "No Knowledge of Account" or similar when in fact we knew what the account was and why it was on our reports.

I wasn't saying you were/Some of these seminars are making money off of people who want a quick fix because as you know credit repair is time consuming and people just don't have patience.I have a couple myself that i can't get removed,i just now got them to report correctly.

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My bad. Thought you were meaning I was trying to find a way around the system or something. Sorry!

No not at all cause the first time you here it.It sounds pretty good until you study it .The credit bureaus would try to link name and address pretty much how the ca's do it.If it's close then it must be him.So it might not be an advantage as for ss# thats pretty much yours forever.

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