Identity thieves devise many different ways to steal personal information and may use these information for committing various acts of crime.  For instance, some scammers today victimize people by offering instant debt relief or quick solution for people with bad credit.

You might come across debt relief agencies or credit counseling agencies that make unbelievable promises in exchange for a fee.  An agency may claim to give you instant bad credit fix so you can get approved for the loan you need or get access to loans with low interest rate.

A certain credit counselor may advise you to use a “new credit identity” to cover your bad credit.  Instead of using your real Social Security number, you might be advised to use a different number such as an Employer Identity Number.

In some cases, you might be provided with a different SSN and this Social Security number could have been stolen from a child.   Since children do not have credit history, their Social Security Numbers are a favorite target for id thieves as the crime can go undetected for many years.  When the child grows up and is ready to apply for a loan or a job, he/she may discover that his/her identity has been used fraudulently.

Hence, the Federal Trade Commission advises consumers to be more cautious when acquiring credit repair services.  If you are being asked to use a different credit identity or a new SSN to replace your personal Social Security Number, you could be dealing with scammers and identity thieves.  The SSN you are provided with could be stolen from a child and you could be supporting identity thieves in their acts of crime. Of course, it is a crime and you can be accountable for it.

IF you presently have a poor credit score or a bad credit history, you can seek out professional advise from a legitimate credit counseling agency.  You can check out the National Foundation for Credit Counseling (nfcc.org) for a list of non-profit organizations that offer free or low-cost in-person counseling.

You can also check out the website of the US Trustee Program  (http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm) for a list of approved credit counseling agencies in your State.

Remember that a reliable credit counselor will never advise you to resort to illegal tactics such as using a “new credit identity” to cover your bad credit.  A real counselor should spend time evaluating your financial situation and assess the root of the problem.  He/she will never advise you to sign up for a Debt Management Program without first considering all the possible solutions to your debt problem.

A true credit counselor will also tell you the steps that you can do for free and your own to improve your bad credit such as your right to check your personal credit report for free through www.annualcreditreport.com; your right to dispute errors in your bill or in your credit report; as well as practical things that you can do to keep your problem from worsening.

About the Author
Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of http://www.newhorizon.org such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Unsecured Credit Cards for Bad Credit

About Melanie Mathis

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. Connect with Melanie Mathis on Google+

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