I was reading yet another claim on how to fix bad credit and want the straight dope.
This organization claimed that due to a loophole found in the 1974 Privacy Act, that it was possible for them (a group of lawyers) to set up a NEW clean credit file for an individual, and to “cut ties” to the old one. They claim it can only be done once, and is perfectly legal. They said something about “credit file replication…”
My first guess was trying to get a new SS#, but they were of course vague about the exact details, as they want to charge the fee for the service.
Is this possible? What does it entail? I looked up the Privacy Act, but it had 3 or 4 pages of defintions for terms in the Act, 3 or 4 pages of exclusions, etc… I couldn’t get through it all. But in skimming the “exclusions” I seemed to see something about consumer reporting agencies (Credit Reports???).
I know the OP referred to repairing bad credit, but some folks find themselves unable to borrow because they’ve never borrowed before. It’s a Catch-22, but if you’re just starting your commercial life, or you’ve always paid cash for everything, you have no record of good credit behavior. It’s tough to get a loan except from high-rate lenders. Here’s how to build a good record:
1.Go to your bank’s loan officer.
2.Ask to get a loan, offering to deposit the money in that bank. For example, $500 for 6 months.
3.Pay off the loan on schedule. Keep the paperwork.
4.Bingo! You now have a credit record. Now you can get a real car loan, instead of paying a high rate to “J. T. Rippover” buy-here-pay-here type dealers.