What Is A Credit Privacy Number? Is It Legal?

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If you want to improve your credit fast, you may have run across companies selling credit privacy numbers (CPNs). These CPNs look just like Social Security numbers and are supposed to allow you to apply for credit without exposing your real SSN and credit information. In reality, using a CPN on credit applications is fraud.

What is a credit privacy number (CPN)?

A CPN is a nine-digit number that looks like a Social Security number (SSN) but is not issued by the Social Security Administration. This credit privacy number, also called a credit profile number, can be completely made up. But often, it is actually a stolen SSN.

Unscrupulous credit repair companies may sell CPNs that are real SSNs that belong to children, the elderly or those who are incarcerated. These companies say that you can use a CPN on credit applications to improve your chances of approval and protect your real SSN. The truth is, CPNs are a complete scam.

How do CPNs work?

Sold as a way to improve your credit or protect your credit information, companies that market CPNs promise you can use them just as you would a Social Security number. A CPN is even formatted just like an SSN (xxx-xx-xxxx).

Companies that sell CPNs often make fictitious claims, saying that a CPN can:

• Give you a clean credit slate.
• Improve your chances of getting loan approvals.
• Boost your credit score to 700 or 800.
• Get you into an apartment.
• Help you get high-limit credit cards.
• Protect you from identity theft.

To use a CPN, you may be encouraged to falsify info like your name or address when you apply for credit cards, auto loans, and even mortgages. By doing this, you are essentially lying to the lender to prevent them from checking your real credit.

How can you avoid a CPN scam?

These “quick-fix” credit companies are experts at marketing themselves as a legal substitute for mending credit fast. But don’t be fooled by their hype. There are some red flags to watch for that reveal the scam. 

The first one is cost. SSNs are issued for free, but scammers often charge hundreds or thousands for a CPN. Unlike legitimate credit repair companies, they may ask for money upfront before performing any work, which is illegal.

When a company encourages you to provide false information, such as a different mailing address, email address or phone number, this is another red flag. The company may tell you this is to protect your identity, but it’s a way of falsifying your information. 

A third warning is when companies promise to quickly remove blemishes from your credit, even accurate accounts. In reality, you cannot remove accurate negative information from your credit profile; you can only wait for it to fall off over time.

If you suspect a company is running a CPN scam, report it to the FTC online. Contact the police if you’ve been targeted by a CPN scam, and freeze your credit with all three major credit bureaus.

Can you improve your credit quickly without using a CPN?

Companies offering CPNs often target people with poor credit ratings looking for a quick fix for credit repair. Unfortunately, there is no quick way to improve your credit score.

However, there are legal, proven methods for improving your credit score over time.

• Paying bills on time: Making on-time payments is the biggest factor for improving your credit score. Paying on time shows lenders you’re a reliable borrower, and it helps increase your score over time.
• Keeping credit utilization as low as possible: Credit utilization is simply the percentage of your available credit limits you are currently using. The lower this number, the better it is for your credit score.
• Limiting new applications: If you have several credit inquiries in a short period on your credit profile, you may see your score decrease by a few points. This could also raise a red flag with lenders the next time you apply for credit.
• Checking your credit report for errors: Mistakes happen. You can get a free credit report at least once per year from each of the three major credit bureaus. If you find an error, each bureau has instructions online for filing a dispute to correct the error. You can also use a credit repair company to help you with disputes.
• Keeping old credit accounts open: Leaving a credit card account open increases the amount of available credit, which helps keep your credit utilization number in check. Plus, the account age is also reported on your credit profile, which can improve your length of credit history and credit score.
• Waiting for negative marks to fall off: Over time, the blemishes on your credit report will disappear. Most information falls off after seven years, but some entries, like a bankruptcy, can stay on your report for up to 10 years.

Bottom line

CPNs are a scam. Shady credit repair companies who sell CPNs will promise that they work just like an SSN and that using one will solve all of your credit problems.

The truth is that filling out a credit application, job application, or apartment application using a CPN is considered fraud. And worse yet, using a CPN in no way helps you to improve your existing credit.

The good news is that you can improve your credit without using a CPN, but it won’t happen overnight. Stay patient, pay your bills on time and continuously monitor your credit reports to ensure your credit profile is up to date and accurate.

Frequently asked questions

• Can I use a CPN for work?
  

  Using a CPN for work can create major issues for you. A CPN is typically marketed as an alternative to a Social Security number, but it’s not a legal form of identification, and it may have even been stolen from someone else.

  When you use a CPN instead of an SSN on a job application (or for any other application), you risk committing identity theft. If you’re concerned about providing your SSN to a potential employer, you can ask the employer if they plan to pull your credit report. Meanwhile, you can take steps to improve your credit history through legitimate activities rather than using a CPN.

• What happens if you get caught using a CPN?
  

  Using a CPN is illegal and considered a form of fraud and, in some cases, identity theft. Identity theft is a federal crime, and if convicted, you can face substantial penalties. Depending on the charges, identity theft or fraud can result in up to 30 years in imprisonment, fines and forfeiture of property.

• Is a CPN the same as an EIN or ITIN?
  

  A credit privacy number, or CPN, is not the same as an Employer Identification Number (EIN) or Individual Taxpayer Identification Number (ITIN). No government entity issues a CPN, and using one is a form of fraud.

  An EIN, on the other hand, is issued by the IRS. It is a legal method for identifying a business entity. Almost any business can apply for and receive an EIN for free. ITINs are also issued by the IRS to help individuals who can’t qualify for SSNs file their taxes.

• Can I get a new SSN?
  

  You can get a new Social Security number, but not just because you have bad credit. New SSNs are only issued in limited circumstances, such as if you have had your identity stolen, have the same SSN as someone else, or are a victim of abuse.

  Applying for and receiving a new SSN is a difficult process, and your old SSN won’t just disappear. Your new SSN will be linked to your old SSN to ensure your wage records remain intact.