USA Credit Hospital

This company sells a "Credit Repair Tool Kit," for $99.95, which claims to provide a instructions on how to repair your credit history by creating a new , "clean" credit file.

This method is known as "file gregation." It usually involves securing an Employer Identification Number (EIN), a number normally used by businesses to report financial information to the Internal Revenue Service. Sometimes the file segregation companies advise you to use a new mailing address and phone number on credit applications as well. Thus your new identity will not be matched up with the old one (the one with the bad credit record).

The IRS warns that it is a federal crime to make false statements on a loan or credit application. It is also illegal to knowingly misrepresent your social security number or to obtain an EIN under false pretenses. By law, information stays on your credit report for seven to 10 years. Accurate negative information can only be removed by with cooperation of your creditors, and this usually involves paying all or some of the debt. If you believe your credit report contains erroneous information, you may dispute the entry by calling or writing the the credit reporting agency. While in dispute, the negative item may be removed temporarily from your report, however it will be added on again if determined to be valid.