Guarantee Capital, Inc.

This company offers a manual called, The Life Changing Credit Secrets Program, for $149. The company's website also advertises a pre-aproved Visa or Mastercard with a credit limit of $5000. Supposedly, this credit card will help establish your new credit file. The credit package also includes a directory of banks and finance companies that they claim will offer easy qualifying for credit cards. After receiving the starter kit, customers are advised to contact the customer support center for assistance with the five step program of establishing a new credit file. In essence the company suggests establishing a new corporation which will have a separate credit identity from the individual. In our experience, most banks require the personal guaranty of the principal shareholder of a corporation before they will extend any credit to a new corporation. One complainant did not receive a refund after returning the materials though the company advertises a money back guarantee. The company responded to the complaint by issuing a refund less shipping and handling. Typically, companies offering credit file segregation claim they can assist with setting up a new and seperate file. The new file will not contain any information on the original file. Be aware that although this may sound like a tempting offer, consider the consequences prior to signing contracts or paying fees. It is illegal to create a new a new credit file to avoid past credit problems. In addition, by creating a new credit identity, you may lose any previously accumulated social security credit. Also, it is a felony to falsify credit information.Establishing a corporation with the intention of creating a new credit identity can have serious and long term tax implicatins. We advise contacting a certified public accountantant before undertaking this kind of activity.