When you are surrounded with debt and your credit score suffers the consequences. Under debt circumstances, credit scores can plummet when debt get overwhelming. It can be so tempting to want to throw in the towel and just become someone else.

It is this temptation tendency that influences people to make bad decisions when it comes to finances and allows individuals who are not always on the up and up to work their way into people’s lives and end up destroying their financial situation even more. There are now commercials on television and the internet advertising great convenience for a relatively small fee. Such companies are advertising that anyone can get a new credit file and cancel out a bad credit rating.

Is is really possible to get a new credit identity?

Plain and simple, the answer is no! There is no way possible for you to overcome bad credit unless you are ready to fix it yourself by paying off your debts and making smart money decisions. When you apply for a loan or any other type of credit, lenders use your social security number to access your credit report from the three credit bureaus. It is your social security number that identifies your identity and credit information and this can not be altered or changed for more credible credit.

The Lowdown on the New ID
The companies that “guarantee” you a new credit identity often take your money, only to advise you to apply for an Employer Identification number or a Taxpayer Identification Number to use instead of your regular social security number when applying for credit. Some will even go so far as tell you to invent your own social security number or even steal one for another individual. Obviously this tactic will not only NOT work, it can also award you some time in trouble with the federal government.

Criminal Acts
Lying on a credit application is a felony. It is also very likely that the people reviewing your credit application will catch on to what you are doing and they have the right to prosecute you for the act. Even first time offenders convicted of fraud can serve time in prison. The Federal Trade Commission (FTC) took action on such companies several years ago and did manage to put many of them out of business but the reality is that companies like this still do exist and are more than happy to take your money, while you get nothing in return but trouble.

If you have bad credit, your only option is to start paying down your debts and do what is necessary to rebuild your credit. Make payments on time and be sure you pay more than the minimum on your outstanding balances to improve your score. It will not happen overnight and will take commitment to keep repairing your credit. But getting back your good credit score is ultimately possible. Remember there is never an easy fix to repairing your finances. If the offer looks too good to be true, it probably is.