Credit Repair Strategies to Avoid Like the Plague

June 18, 2009

By Mike Wayman

There are vast numbers of credit repair plots and schemes proffered on the Internet. Some are designed to merely take your money. Others, however, while also designed to take your money, can get you in to serious legal trouble. Let me introduce you to the “Personal Credit Number” sometimes known as a CPN or PCN. This strategy requires you to get a new Employee Identification Number from the Internal Revenue Service and the “credit repair” company tells you they will create a new credit profile for you utilizing this new number.

This “new” credit profile is supposed to be a fresh start. In reality, using this new credit profile is considered a misrepresentation of your true identity and is nothing less than fraudulent if you apply for credit using this number. If you default on credit utilizing this fraudulent identity be advised that the credit issuer may very well come after you for fraud and they will be well within their rights.

This scam isn’t new and it has been used to defraud creditors for years. Some of these scams are simple while others far more ornate and calculated. For instance, some companies actually sell credit profiles with active CPN numbers and tell their clients they will never have to pay their debts back. These companies may promise signature lines of credit and credit cards as part of the package in their service agreements.

If anyone tells you they will create a brand new credit profile for you utilizing a different social security number or a CPN stay far, far away from the company. You can find yourself in a heap of trouble.

Credit repair isn’t easy and some people make it seem as though they can perform miracles. A CPN and a new profile may not be a miraculous achievement as many people have acquired these “new credit profiles” but it certainly is something to stay away from.