Obtain a New Credit File

If your credit is bad and you are trying to figure out how to get a new credit record or file, you may be thinking about responding to advertisements on "How to get a new SSN or credit file." If you respond to these advertisements you will be charged anywhere from $25 to a few thousand for information that is either worthless, false, illegal, or the same information that you can get from me for free.

First, you can not change your SSN legally just because you ruined your credit. Having said that, it is possible to change your SSN. If you have been a victim of identity theft and can prove it with police reports and credit reports, and are willing to go through even more red tape and hassle than you have already been through. All you have to do is contact the Social Security Administration and they will let you know what paperwork is needed. You don't need to spend a bunch of money buying information from a scam artist on the Internet to take care of your problem of getting a new SSN.

Have you had financial problems in the past that caused you to have a bad credit report? Do you have a history of writing bad checks and can not get a checking account? I am not here to judge anyone, sometimes good people find themselves in a bad situation. Sometimes bad people straighten up. Whatever your situation is, you are now looking to start over and need a clean start with credit.

First Step to Obtaining A New Credit File

The simplest way to get a new credit file is to start a business and use the business's credit file so you can start over in the credit arena. That's right you don't need to pay some con artist a bunch of money, you need to start a business. What kind of business? Whatever kind you want. Now to get started you don't have to spend weeks and months racking your brain for the "perfect" business. Some ideas are, selling on ebay, start a garage sale business, writing for Associated Content, mowing lawns or whatever. The idea is that you pick something. Later on if you come up with a better idea and decide to really pursue your "perfect business" you can.

Once you figure out what you are going to do, you will need a business name and will need to file that business name with the Secretary of State as a Limited Liability Company. A Limited Liability Company is almost like a corporation, but simpler, with less paperwork and cheaper to set up. Again, you don't need to pay some company a lot of money to do this. Simply go to the official website for your state, access the Secretary of State and most states will have information online on what you need to do. In Ohio it cost $150, you print out a couple pages, fill in simple information and mail it to the Secretary of State. Within a few weeks you will get a certificate in the mail making your new business official. In Colorado, you can do everything online and instantly be in business. Every state is a little different.

Second Step To Obtaining a New Credit File

After receiving your new business certificate you are now ready to get a EIN. An EIN or Employer Identification Number or FTID, Federal Tax ID Number is obtained from the IRS and is what will be used to obtain a new credit file. Contact the IRS and get your EIN. Usually you can get an EIN instantly.

Third Step To Obtaining A New Credit File

You will now take your new business certificate and your new EIN down to a local bank and open a checking account in your business name. As long as you do not ask for any credit or overdraft protection, they will not run a credit check on your Social Security Number and will let you open a checking account, regardless of you personal past history. You will now have a checking account in your new EIN and will have created a credit file in that EIN's business name.

Fourth Step To Obtaining A New Credit File

Now if you want to actually start building credit in your new name and credit file, you need to apply for credit. The easiest way to do that is through secured credit cards. If you are looking to obtain a large credit line it will take some time. There are many companies online that will give you a secured credit card in your new business's name. Do your research and make sure you are dealing with a real company. Call the Better Business Bureau where they are located, contact the Secretary of State and make sure they are legitimate before sending them money. Only obtain as much credit as you know you can pay off on a monthly basis. Pay for everything you need with your new credit cards and pay off the balances every month. After six to twelve months of doing this, apply for a small loan at the bank where you have the checking account, again, pay it off early. Then ask for a larger loan. You want to establish a history of making large credit payments every month.

You now know how to obtain a new credit file and start building credit with it. Remember, you are in business. You now have a world of opportunity open to you. Even if all you do is have a couple garage sales each year or occasionally sell items on Ebay, you have tax deductions available that you did not before and you have a new credit file and possibly a way to improve your cash flow.