Free 60 Second Application with 98.9% ApprovalAvoid Wrong Credit Repairing Techniques
Credit repairing is a long term process that requires time, and it is practically impossible to repair credit overnight. People with poor credit need to understand this because they may fall prey to fraudsters if they are after quick credit repairing alternatives. At Valley Auto Loans, we have been dealing with bad credit consumers for many years and we often come across car buyers that look for credit improvement techniques that work faster than signing up for a bad credit auto loan.
Our Experience
We have been in the bad credit lending market since a long time and have a great track record in helping these poor credit borrowers with all their auto loan related requirements as well as credit repair help. We also offer financial guidance to them though this blog that regularly publishes new articles to help them make informed financial decisions in their life and ways to assist them in repairing your credit.
Most of the credit challenged consumers are extremely keen to improve their credit score for reasons that are known to all. A number of fraudulent businesses have now started capitalizing on this, and they promise immediate fixing of credit for anyone. Many of these businesses convince their customers that they can help them establish a new financial identity. However, following this solution may have severe consequences.
This entire process is known as file segregation. In this process, certain people who have just completed their bankruptcy receive letters from a credit repair agency. This letter tells recipients that due their just completed bankruptcy they are not eligible to receive any form of credit for the next 10 years. These letters further state that they can help these people hide their bankruptcy by the establishment of a new financial identity against a certain fee.
The Next Step
To establish this new identity, the credit repair agency instructs their clients to apply for an EIN or Employer Identification Number. This number looks almost similar to SSN and is issued to business houses for the purpose of financial information reporting to the Social Security Administration and the IRS. After receiving the EIN, these companies advise their clients to use the same when they apply for any type of credit, instead of SSN. However, these agencies never tell their clients that making use of EIN for the purpose of personal identification is a criminal offense. This is also a civil offense in many states.
Any person with bad credit must be extremely careful and avoid any such offers that sound too exciting. They also need to understand that credit repairing is a long term process that can only be accomplished by making judicious financial decisions over a period of time.
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