This old trick seems to be gaining popularity again. File segregation is the practice of creating a new credit file using a fake, stolen or some other form of tax identification number instead of your own social security number. Many people feel this is the only way they can enjoy good credit again, but one thing to keep in mind is….FILE SEGREGATION IS ILLEGAL!

I’ve seen some people’s credit reports that have attempted this. At first it works well for them, they easily get a credit card for new or no credit and start building a credit file. I’m not sure if its just a common slip up or that old adage that “there is no such thing as a perfect crime” but everyone always makes at least 1 mistake…..and that one mistake leads to a credit file merge.

A credit file merge is when all that old bad credit that they where running away from merges onto the new credit report along with a BIG RED FLAG in the form of an alert at the top of their credit report advising creditors that you have credit under an assumed name.

What does that tell your creditors or future creditors….WATCH OUT!

Its really not worth your time or money to try file segregation. It would be better for you to just work on rebuilding your own credit .