Can I create a new credit file with a new social security number?

Federal law has made it illegal to use an alternative social security number when applying for credit. By using another social security number and new identification you cause the credit bureaus to generate another report for a person that does not really exist, and then use that new report to obtain credit. One of the problems with this technique is that it requires that you lie on applications for credit, which in most states is a criminal offense.

When you apply for a credit card, loan or any type of financing you are asked for your social security number. Your social security number is the main way that the three credit bureaus, Experian, Equifax and Trans Union and many creditors and employers, etc., keep track of you and separate your credit file and personal information from everybody else. Therefore, to create a new credit identity or file, one would need a new social security number. Since it is almost impossible to get a new social security number from the Social Security Administration, those who sell "create a new identity" information advise you to apply to the federal government for an Employer Identification Number (EIN) or Taxpayer Identification Number (TIN) and use that number in place of your social security number when you apply for a loan or credit card. They might also advise you to make up a social security number or steal one from someone else.

There is a problem with doing any of the above in that it is a felony to lie on a credit or loan application. If you decide to try this, the mortgage lender or whomever you try to defraud will likely catch it, and if they do, they have the right to turn the whole matter over to your local district attorney for prosecution. First offenders convicted of bank fraud usually get a two year prison sentence.

People who sell "credit a new credit identity" information are scam artists who are in violation of the Credit Repair Organizations Act, which is federal legislation that bars anyone from claiming that consumers can create a new credit identity. In fact, several years ago, the Federal Trade Commission went after many sellers of this information, shutting down their websites and email scams, and made those who hadn't already spent the money reimburse their customers.