If you have been doing any research about how to repair your credit, you have probably heard people talk about creating an alternate credit file. This is something that was so prevalent a few years ago that the Federal Trade Commission launched an operation against businesses doing this called "New ID Bad Idea."
The premise behind this was companies would offer people with bad credit a brand new credit file by opening a new file for them using an Employer Identification Number (EIN0 in place of their Social Security Number (SSN). The companies doing this even went so far as to tell their clients that this was sponsored by the federal government.
What they would do is get an EIN from the Internal Revenue Service for their client. They would then tell the client to apply for credit using the new EIN and a new address. When the customer would do that, the credit would run a credit check. The credit bureaus would not find an existing file for that EIN at that address. So a new file would be created, effectively giving the client a clean credit file. The only problem is this is highly illegal.
How you can create an alternate credit file legally.
There is a technique that you can use which is similar to this, but not illegal. You see anyone can decide to start a business, and a business is allowed to apply for credit. So to create a new credit file legally, you can set up a business under the form of a Corporation or an LLC. This can be done in most states through the Secretary Of State.
You can apply for a business even if you do not have a business. You could use your last name and place the word "holdings" behind it. For example, "Kamagra Pharmacy Holding" You can do this legally an have the business keep title to your house, or vehicles, or anything else you want. You should consult with an attorney and possibly an account about doing this before you actually do it.
Once your business receives the entity designation you seek, you can apply for business credit in the name of your company. Now you have just created a new credit file legally, and have not violated any laws to do so.
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