How to Create an Alternate Credit File

"Each problem has hidden in it an opportunity so powerful that it literally dwarfs the problem. The greatest success stories were created by people who recognized a problem a turned it into an opportunity."

- Joseph Sugarman

There have been several different methods developed over the last few decades that have allowed consumers to create a new, clean, second or alternate credit file. Here is the most common.

Using the credit bureau's current criteria in maintaining their records, the first two letters of your last name, your current address and your SSN, consumers are able to create a second credit file using their current SSN. This happens with a name change (by marriage or whatever other reason) and an address change. The consumer then will apply for new credit using the name change and new address, but neglects to use a previous address. When this is done, a second credit file is created by accident.

If a consumer applies for a mortgage in this example and orders a tri=merge credit report, which pulls reports from all three credit bureaus, a second credit file will be created with all three of the credit reporting agencies. The problem here occurs when the consumer knows that they're using a second credit file, and they're attempting to conceal their credit history, they're breaking Federal law.

These methods of using an alternate credit file, in my opinion, is completely illegal and unethical. You will be breaking the law and will find yourself in court explaining yourself to a judge.

But there is a completely legal method to develop an alternate credit file. However, there are two important things a consumer must consider before they decide to use this technique.

First and foremost, creating an alternate credit file does not relinquish a consumer from any previous liabilities that exist on your original file. Second, it is illegal to conceal adverse information that is accurate from a credit reporting agency or to any company that extends credit, such as a bank or credit card company.