Improving Credit Score by Borrowing Credit
First Time Visitor? Welcome
FinancialLearn.com is dedicated to finding great deals, free stuff, and promote frugal living. We are delighted to have you here.
Sound Fun? Have our articles delivered to you via RSS Feed or E-mail to be reminded of new and upcoming contests and articles.
Buying Credit
Have you heard about improving your credit score by borrowing credit? Did you want an easy way to get a great credit score instantly? Well there is a way. Is it legal? More like a convenient way around the slow building of your credit routine.
What is it?
With credit problems being rampant in America and the wide use of the Internet you should not be surprised that some have found a way to rig the system. There are Internet sites all over advertising the opportunity to buy your way to good credit. Because of the role that credit scores play in obtaining houses, cars and other household goods it is inventible that someone would try to find an easier way to build credit than pay your bills on time. Buying credit is when you attach your name and social security number to someone else’s credit account. Their history is now added to your credit report. With a few long-term, good payment history accounts your score can be high enough to get excellent interest rates.
How buying credit works
A company charges you money to place your name and social security number on an account in good standing. When your name and social security number are added then you receive the payment history as yours. Once the credit card companies have reported your name and number association then your name will be removed. This positive credit will be yours for seven years. You may be charged a few thousand dollars depending on how many accounts you want to be added to.
Risks of buying Credit
One of the obvious risks is that of identity theft. Your social security number and name are given to the company you are buying the credit from and then to the people whose accounts you will be added to. Just because your credit may be a mess does not mean it cannot get worse. Identity theft can cause you major trouble for years.
Problems
Just because you buy a good credit score does not mean that you have the income and tenacity to maintain good credit habits. You are obtaining credit under false pretence and if you cannot maintain it then you will get in trouble. The credit you have obtained and all of your work and money will have been in vain. You will not only loose the good score you paid for but because you got credit that you could not maintain your score will now be even worse then it was before. At the moment it may only be considered dishonest but you may be doing yourself more harm than your creditor. You could end up with judgments, bankruptcy and collection accounts in amounts that you cannot repay.
Recommendation
Do it the right way, the old fashioned way – earn it. You will gain so much more than just your self-esteem. Pay your bills on time and do not buy things on credit that you cannot afford. Make a plan to build a good solid electronic financial reputation. You will be much farther ahead in the long run.
Next Step: The Negative Impacts of Credit Collection Accounts
Related Posts
- Credit Repair 101
- How to Read A Credit Report
- Gift EE bonds
- Improving My Credit Score
- 12 Credit Score Killers
- 5 Ways to Improve your Credit Score
- How to Get a Credit Card with Bad Credit
