"No Credit, No Problem" Whether a consumer is able to purchase or finance an item using their credit history as a guideline may or may not be a problem. A decision to lend a person money based on their credit rating is made by a lending institution. For the most part, the more expensive the purchase, the better your credit must be to purchase it. Large scale items such as homes or cars generally require a good credit history. A lower credit score can increase the likelihood of denial for credit. Many factors go into a bank or business's decision to lend money to an individual. It is impossible, therefore, to guarantee a consumer that they will be allowed to make purchases no matter what their credit rating.
"100% Guarantee--Erase Bad Credit" No one can legally remove accurate negative information from a credit report. Federal law allows for people to dispute inaccurate or outdated information on their credit reports. There is no charge to request a credit reporting agency to do an investigation of inaccurate information. Visit the FTC website for steps to take in disputing information on your credit report and provide your own self-help.
"Get a New Legal Credit Identity" A company may tell you to apply for an Employer Identification Number (EIN) as a way of erasing a negative credit history. Creating a new legal identity to avoid your credit history violates federal law. These numbers come from the IRS and are legitimate for businesses to file business taxes. It is a federal crime to use these numbers for personal credit and tax use instead of your Social Security Number.
"Remove Bankruptcies, Judgments, Charge-Offs, and Liens" The general reporting rules for accurate negative information are the following: bankruptcies can be reported for 10 years; judgments or liens can be reported for 7 years or until the statute of limitations runs out, if longer; information regarding criminal convictions does not have a time limitation and most other types of credit information can be reported for 7 years. For exceptions to these rules, please see the Fair Credit Reporting Act on the FTC website.
These tips are for every consumer attempting a fast fix for past credit mistakes. If you believe that you have been victimized, call the Division of Consumer Affairs at (615) 741-4737, in Tennessee (800) 342-8385. Most important, if in doubt, remember the following:
A consumer should NOT do business with a company if....