If you’re battling low credit scores, you’re well aware of the difficulties they may provide. A low credit score may make it difficult to get a credit card or a vehicle loan. Renting an apartment may become more difficult as a result of this. Therefore, when you see an advertisement offering to help you rebuild your credit history via the acquisition of a CPN, it may seem to be the answer to your prayers. Is that true, however?
A credit privacy number, or CPN, is a nine-digit number structured identically to a Social Security number (SSN). Additionally, it may be referred to as a credit profile or credit protection number. Consumers who purchase CPNs are marketed as a method to conceal a poor credit history or bankruptcy. Additionally, they’ll say that you may apply for credit using your new credit identity using the CPN rather than your SSN.
Is this an offer that seems too good to be true? In most cases it is unlawful. Very few companies offer legal CPN services. Continue reading to learn the truth about CPNs, we will be going into great detail explaining the facts that don’t support CPNs versus the facts that suggest utilizing credit privacy numbers as avalid finacial option.
Do CPNs Truly Assist Individuals With Poor Credit?
Companies that offer CPNs position them as a substitute for SSNs, creating the notion that CPNs are genuine. For instance, one website selling CPNs claims that the numbers are “completely tri-merged with the Social Security Administration.” (Doesn’t that sound official?)
In fact, these businesses are fraudsters. They may acquire SSNs via questionable methods, often from minors, elderly people, or incarcerated individuals.
If you pay attention, you’ll notice many warning indications that CPN dealers are up to no good. While SSNs are provided free of charge, businesses will charge you for a CPN—often hundreds of dollars. They may advise you to give incorrect information—for example, a different address, phone number, or email address—when you use the CPN to complete credit applications. Often, they’ll claim this is to safeguard your identity—but in reality, they’re pushing you to establish a fake identity.
When you’re zealous about credit restoration, it’s easy to overlook these warning signs. However, utilizing a CPN may result in much more serious issues than a bad credit rating. Regardless of how the CPN is acquired, its use on a credit application or elsewhere may constitute identity theft. Additionally, falsifying a credit or loan application or misrepresenting your Social Security number is a federal offense.
What Is The Difference Between CPNs and ITINs and Social Security Numbers?
The Internal Revenue Service (IRS) administers tax laws via the use of taxpayer identification numbers. Individual Taxpayer Identification Numbers (ITINs) and Social Security Numbers (SSNs) are two kinds of taxpayer identification numbers. The Social Security Administration issues SSNs; these are what the majority of individuals use when paying taxes.
The IRS issues ITINs in limited situations to certain non-resident and resident immigrants, their spouses, and dependents who are unable to get SSNs. An ITIN is similar to an SSN in that it has nine numbers and dashes; however, all ITINs begin with the number nine.
CPNs are nine-digit numbers that mimic Social Security numbers and Individual Tax Identification Numbers.
What About Obtaining a New Social Security Number?
When you’re losing money or chances due to bad credit, it’s normal to wish you could start again. However, obtaining a new SSN is not the solution. The IRS may issue a new SSN only if the following conditions are met:
- SSNs issued sequentially to members of the same family are creating confusion.
- Multiple individuals have been allocated or are using the same SSN.
- A victim of identity theft is now experiencing difficulties as a consequence of utilizing their original Social Security number.
- Someone is harassed, abused, or their life is threatened.
- Someone is being harassed, assaulted, or has their life threatened.
Even under these severe circumstances, obtaining a new SSN is not simple. You’ll need to provide a compelling cause for the change by submitting all documents requested by the Social Security Administration and obtaining assistance from others (such as the police or your church or temple).
More precisely, obtaining a new SSN does not imply that you may discard the previous one. The Social Security Administration will cross-reference your new SSN with your old SSN to ensure you get credit for all of your earnings and the correct amount of Social Security benefits when you retire. Whatever you do, you will always be connected to your initial SSN.
How To Restore Your Credit in The Correct Manner
You cannot eliminate poor credit quickly by buying a CPN. A better strategy: Use the money you would have spent on a CPN scam to repair your credit history properly. This is how:
- Make on-time payments on your invoices. On-time payments account for the lion’s share of your credit score. Even if you are only able to make minimal payments, being on time will assist you. To prevent missing payment deadlines, send yourself reminders or enroll in autopay on your accounts. If all of your bills are due at the same time and you’re having difficulty paying them all at once, call the creditor and request a modification on the due date. Consider signing up for a professional credit repair company if you don’t have the time to pursue credit repair alone.
- Reduce your debt-to-credit ratio. This ratio indicates how much of your available credit you are using and is used in conjunction with payment history to calculate your credit score. To maintain a healthy credit score, you should utilize no more than 30% of available credit, but ideally in the single digits. Learn how to determine your credit usage ratio and how to improve it.
- Postpone credit applications. When you apply for a loan, credit card, or other kinds of revolving credit, the lender will request your credit file from one or more of the credit bureaus, resulting in a hard inquiry on your credit report. Your credit score will be affected by hard queries. Although the drop often lasts just a few months, applying for several credit cards or loans at the same time may signal to credit scoring models such as FICO that you’re having financial difficulties, which may harm your credit score.
- Maintain existing credit accounts. If credit cards are burning a hole in your wallet, canceling an account after paying one-off may seem to be a prudent approach to eliminate temptation. However, this lowers your total available credit, which usually results in an increase in your credit usage ratio. Maintaining older accounts demonstrates that you’ve had credit for a lengthy period of time, which improves your credit score. Even if you have no intention of using them, leave older credit accounts active.
Can You Obtain a Legal CPN Number?
Although we have gone into detail explaining the risks of trying to obtain a CPN, however, we also want to play devil’s advocate and provide the facts about Credit Privacy Numbers that you won’t often find on the web.
“According to Title V of the 1974 Privacy Act, you have the right to maintain the confidentiality of your Social Security Number (SSN) and not be refused service as a result of your refusal. Credit bureaus are not government entities, which is why you are not required to give them your Social Security Number (SSN).”
What Does The FBI Say About CPN Numbers?
The FBI website has comprehensive information on CPNs (Credit Privacy Numbers) and will notify you that a CPN IS LEGAL!
“Credit Privacy Numbers (CPNs) are nine-digit file numbers that are generated in the same way as Social Security Account Numbers (SSNs) (SSNs). At the moment, federal legislation permits people to utilize CPNs for financial reporting while also protecting those who do not want to reveal their SSAN. Individuals who get CPNs are entirely liable for any debt incurred via the use of this number.”
What Does The Federal Law Say About CPN Numbers?
Bear in mind that the CPN (Credit Privacy Number) / SCN (Secondary Credit Number) is used only for consumer credit reasons. Currently, federal law permits people to utilize their CPN / SCN Numbers for financial reporting while protecting those who do not want to reveal their Social Security Number (SSN). Individuals who get a CPN / SCN Number are solely liable for any debt incurred via the use of this number.
Federal law permits an individual to lawfully use a private identification number in lieu of his Social Security Number for financial reporting purposes (SSN).
Credit bureaus are not legally permitted to request a person’s Social Security Number (SSN). One has the right to keep his or her Social Security Number (SSN) private and should not face repercussions for exercising that right. Because credit bureaus are not government entities, the applicant is not required to provide his Social Security Number (SSN). Thus, individuals who do not want to reveal their personal information, except as required by law, are protected by federal law.
Additional Information about CPN / SCN Numbers
CPN (Credit Privacy Number) / SCN (Secondary Credit Number) is a nine-digit number that is genetically identical to a Social Security Number (SSN). This is not a government-issued identification number, such as an EIN or TIN. This is NOT a new Social Security Number (SSN) nor is it a tax ID or employer identification number (EIN). It is just a credit bureau file number that may have financial information submitted to it. You only have one opportunity to set this number, so do not misuse it. This explanation is not intended to encourage anybody to falsify their Social Security Number (SSN), as you are entirely liable for any obligations incurred with your CPN / SCN Number.
- After receiving your new CPN (Credit Privacy Number) / SCN (Secondary Credit Number), avoid being too enthusiastic and applying for anything that comes to mind. Credit development takes time. Plus, 10% of your Credit Score is determined by the amount of credit queries on your file. Submit just one credit card application at a time. When you get one, discontinue application. Take possession of the card, use it, and settle the charge. USE NO MORE THAN 20%-30% OF AVAILABLE CREDIT. Carry out this procedure for two billing cycles. APPLY NOW FOR THE SECOND CREDIT CARD.
- Credit building the correct manner takes time and effort, so do it gently and gradually. In lieu of your Social Security number, your CPN Number (Credit Privacy Number) / SCN Number (Secondary Credit Number) may be used. THIS IS NOT A SECOND PHONE NUMBER FOR SOCIAL SECURITY (SSN). YOU ARE RESPONSIBLE LEGALLY FOR THE USE OR MISUSE OF YOUR CPN / SCN NUMBER. It is not a substitute for your existing social security number (SSN). Your CPN / SCN number will be issued only for the purpose of establishing credit. You are entirely liable for any debts incurred using the CPN/SCN number and credit profile.
Your Social Security Number (SSN) will continue to be used for employment, taxes, state benefits, and to get a driver’s license. Furthermore, you are responsible for any obligations committed using your Social Security Number (SSN).
Any and all financial agreements that you enter into using your CPN are your responsibility.
How can we dispel the myth of “is it legal?”
Please view our response to common arguments against Credit Privacy Numbers below:
“I would not utilize a CPN, much more so if your credit is suspect,” said John C. Heath, a credit specialist and consumer advocate with Lexington Law. “It may be seen as an effort to mislead a creditor about your creditworthiness (even if that is not your intention).”
What Lexington Law does not tell you is that using a CPN to perform personal financial transactions is perfectly lawful… getting consumer credit in its most basic form. If you fail to pay these payments, you risk getting yourself into serious problems if creditors establish that your goal was to dodge creditors and avoid paying your committed obligations.
“CPN vendors often inform customers that they may apply for and get credit from lenders, as well as that their credit transactions will be recorded to the three main credit reporting agencies – Experian, TransUnion, and Equifax.”
This is EXACTLY what happens when we register your CPN number and personal information with all three agencies… There is no myth!
“Equifax requests Social Security numbers and not alternate identifiers,” said Nancy Bistritz, Equifax’s head of public relations and communications.
TransUnion provided us with a similar statement….
TransUnion utilizes Social Security Numbers to identify consumers for credit reports, according to David Blumberg, TransUnion’s public relations director. “This technique is the industry standard since it enables the most precise matching.”
Correct answer: The five institutions that ask you to provide your Social Security number do not include private credit bureaus. This is why the number is entirely lawful for use in conducting personal financial transactions without revealing your sensitive information to bureaus that are not obliged to access it on ALL levels.
“If these numbers are frauds, how come individuals face punishment while numerous businesses are plainly promoting and selling them without recourse? If the CPN is really unlawful, it seems that some responsibility rests with the authorities that issue them…… Additionally, I’ve been aware of the CPN for years and have seen many people “restart” their credit histories with them. How are credit lines given and authorized if reporting agencies do not accept or acknowledge them?”
Because they are legal to own and use as long as you pay all of your payments on time. They just attempt to dissuade customers from buying and using them via deceptive advertisements and ambiguous interpretations of the law, assuming that the majority of consumers are idiots!
“Why would the Social Security Administration provide them if they cannot be used for anything legal? That makes no sense.”
Correct answer: They are given by the Social Security Administration to all immigrants who come to work in the United States. They claim it is not for employment purposes and is not a social security number. What then is it? It is a CPN for personal financial transactions!
Companies that provide credit privacy numbers tout two significant benefits. Despite these ostensible benefits of obtaining a CPN, Credit Privacy Numbers wind up being a barrier when applying for a business loan.
Correct answer: You may only use it to acquire personal credit and funding and then utilize those money to grow your company.
- It safeguards the confidentiality of your Social Security number.
- Individuals concerned about identity theft and opposed to disclosing their Social Security number with anybody may get a CPN in the mistaken belief that they may use it as identification in lieu of their SSN.
- In fact, if a lender requests your SSN, they are unlikely to accept your credit privacy number. Consider this: You’re asking a bank to give you tens or hundreds of thousands of dollars, believing that you’ll repay it, but you’re unwilling to disclose your Social Security number?
Correct Answer: This is a feeble reaction… A CPN does really safeguard your Social Security Number! It is, in fact, a firewall!
2. It may assist you in repairing your credit history.
CPNs are often recommended as part of a credit repair strategy. Numerous credit restoration services show up when you do an internet search for “credit privacy number.” These businesses say that by using the CPN, you may apply for credit cards, lines of credit, or loans without the company learning that you have poor credit.
This is true in the majority of instances… and these businesses lack the privilege of having access to your SSN credit.
However, it’s quite clear that the credit privacy number is designed to conceal rather than improve your credit history. And common logic dictates that as long as the CPN is associated with you—your name, address, and other identifying information—credit providers may easily ascertain your credit score regardless of whatever ID number you use.
“What Is A CPN? Fraud Just Waiting to Happen– Wallethub”
Correct answer: Only if you retain the funds acquired via the CPN number and do not return them. They will claim that you purposefully deceived creditors, which is fraud! They are unaware of them and are aware that discussing CPNs would boost their Google results.
“Your One-Way Ticket to Jail, the Credit Privacy Number- Creditsesame”
Correct answer: Only if you keep the money you received by using the CPN number and do not return it. They will claim that you purposefully deceived creditors, which is fraud! They are unaware of them, and they are aware that discussing CPNs would boost their Google Serp Score.
The Bottom Line
There are compelling arguments on both sides of the CPN argument, we have simply provided the information so you can make an adequate decision on if you do or don’t want a CPN. If you would like to try out our CPN service please contact us at any time and remember, do your research!