How can this be illegal? Credit report alteration?

Question

I'm currently in my mid 20's. I've been paying utilities, phone bills, and other bills on time each month. Never been late. I've always had great payment habits since I was 13 (got my first cell phone) with any bills.

To my shock, a year ago I was turned down for a car loan. Sorry to say, I didn't have thousands of dollars in cash to just plunk down on a car. I needed a loan which I can pay off, since everyone else has loans. I figured my great payment history would afford me a decent interest rate and approval on the spot.

I was denied because I had no credit! The finance guy basically told me I was stuck with the "loan shark 20% interest guys who say "No credit? Bad credit? 2nd chance financing and in house financing" run down dealerships that sell high mileage vehicles that might break down soon.

I was appauled. I got stuck with the same rates or credit category as some deadbeat who never pays bills, skips out on bills, evades creditors, or pays late all the time!

Basically I had a family member of mine at a large lending institution add some fake loan accounts. One for over 15 grand. Several more for thousands a piece. All are paid off, and I currently sport an 8 year credit history. He was nice enough to add in an auto loan (with a co-signer status and the auto loan was my first "official" loan so it isn't too fishy), and an active revolving visa account with this large bank (they do offer a visa card product), with a 5,000 limit, and less than 5% utilization across the life of the account. The visa has been open for over 6 years.

I went to another reputable car dealer across the street from the one I got denied 4 months later (it took over 90 days for all the accounts to pop up on my credit reports), and got approved for zero down (had to pay TT+L) and 1.9% for 72 months! Their best financing terms to boot.

I am able to get stuff without a deposit. I got a real credit card. Everything is much easier now.

I always wanted to do things on my own and no one was willing to co-sign for me. My relative is a higher up at this bank, and has made this an insider job with more than one individual involved.

I've been told this is illegal though. How can it be considered illegal when your simply arranging it for the reason of getting the fair rates you deserve? Why should I have to be stuck with 20% or higher auto loan rates?

As my relative pointed out, I was being given the shaft for my perfect payment history. He said it's the lenders fault for not taking my long utility payment history into consideration. All he did was add in the perfect payment history to give me a fair shot.

Think of it, there's negative false information on people's reports. That's not considered a holy catastrophe. Why is false positive info considered a catastrophe?

Answer 1

utilities and phone companied only report delinquincies. some insurance companies or gyms will report positive payments but not most. your best bet is to get a credit card or two and use them and pay them off each month.

Answer 2

Unfortunately, the fact that you have been paying all your utility bills and phone bills on time does not establish "credit" in the eyes of lending companies. What is known as "credit worthiness" is having several credit cards with a good payment history. The utility companies do not report to the credit bureaus, until you start not paying them. Your age is also a factor. If you don't have good employment, you're sunk.

Answer 3

Doctoring someone's credit report is fraud - any way you slice it. Your relative is falsifying information. How is that NOT illegal??
Paying your utitlities and cell phone on time is great, but you didn't establish any "traditional" trade lines of credit (i.e. the ones that show up on a credit report). Unfortunately, those are the only ones that count.
I applaud you for paying your other bills on time, but on the other hand, it is unfair that you took the easy way out and skirted around the rules to get what you want (instead of establishing traditional credit just like the rest of us).
I hope you don't get caught!

Answer 4

How can this be illegal? Credit report alteration?

T.R.Y
T.H.I.S.
S.I.T.E
W.H.E.R.E
Y.O.U
C.A.N
F.I.N.D
T.H.E
B.E.S.T
S.O.L.U.T.I.O.N
F.O.R
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