What Is A New Credit File ?

What Is A New Credit File ? More than once I am often asked the question What is a new credit file ? As I often say always know what you are getting involved with before you try to implement any credit repair method suggested by credit repair manuals or any of the so called credit repair companies. These companies will suggest such dangerous and sometimes illegal methods such as file segregation and credit privacy numbers. So exactly What is a new credit file ? This is a file that is created to erase any bad debts the consumer owes.

Although this does not release the consumer from the debts they will not show up on the consumers credit file. The consumers is then instructed to obtain a cpn number or ein number and to start building credit under that number. When applying for loans or credit cards they are instructed to use the cpn number in place of their social security number. Any time their credit reports are pulled from all three credit bureaus it will always show a positive payment history with all three credit bureaus.

If the lender or credit card companies discover that you are using these borderline illegal methods, it is possible that they will file criminal charges against you for fraud. If so it is best to avoid these methods and avoid criminal prosecution for defrauding lenders. Due to the mortgage meltdown with so many homes going into foreclosure due to methods such as the ones above the federal government is cracking down on credit repair organizations and anyone involved in creating these types of files.

The best way as I always say is to dispute all negative items listed on your credit reports via a debt validation letter. Remember if the debt is not proven you do not have to pay It is federal law that the negative item be removed from all three credit reports. Persistance and patience are required to achieve good credit scores. Now you know What is a new credit file ?

A quick way to go to prison !

Remember Knowledge Is Power