What is a Credit Privacy Number (CPN)?

What is a Credit Privacy Number (CPN)?

Have you ever been worried about ID theft to steal your social security number or fraud? Are you looking for an easy solution for bad credit? During your research, you could include a CPN or credit privacy number.

 

What is a credit privacy number?

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People sell these numbers, and they claim that even with bad credit, people can use it instead of their social security numbers to get loans, credit cards, and other financial products that they wouldn’t otherwise qualify for. Those who sell CPNs to consumers also say that when they start using their CPNs they can improve their credit. Sounds too good to be true, doesn’t it? That’s because it is, but more on that later.

The FTC, Federal Trade Commission, has said that people say fixing these numbers with their credit score is outright fraud. If you don’t use one, you can be on the wrong side of identity theft, or you could even end up in jail if you accidentally mix your CPN with your social security number on an official document.

There are a lot of red flags associated with this, of course. First, when trying to get a CPN, you can change your phone number, do things like ask for a driver’s license that has a different address, or even start a new email address. Of course there is also a fee to get the numbers. You might think people would shy away from them, but no … they still get them.

 

Why do CPNs exist?

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CPNs are very real and they make good use of them in certain situations. In 1974 the US Privacy Act was passed. It allows people to withhold their SSN if it is not required by law. So for example, you are not required by law to give your social security number on a loan application, but good luck getting credit without it. You could technically use CPN. However, the government does not recognize nor legitimize it.

 

The Big Issue With CPNs

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There are a few problems with CPNs in addition to those mentioned above. First, they are not helping you get credit better. So it doesn’t fall for it. These numbers too could get you in trouble with the law. How? Because many of the numbers that these scammers are able to sell are, and in some cases, are real social security numbers that have been stolen. In fact, many of the CPNs out there are figuring out children’s social security numbers because fraudsters know that it could take many years before the scam. Also keep in mind that if you use a stolen social security number to apply for credit, even if you don’t know it, you could be committed to identity theft.

 

Avoid CPN scams

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When faced with financial difficulties, it is very tempting to look for an easy and quick fix, and this seems like a big one. But as you now know, it is not. So, to avoid some information about these scams:

  • Beware if you are dealing with a company that offers a “new credit identity.” That just doesn’t exist.
  • They don’t believe it when a company says they can get an Employer Identification Number, and use one instead of a social security number. Although there are ONE, you cannot use one as the SSN.
  • When thinking about credit repair, understand your rights. The Credit Repair Organization Act makes it illegal for a credit repair company to charge you before they do their job.

 

What you do instead

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Unfortunately, there is no legal way to get a blank sheet on your loan. However, most of the information on your credit history is not permanent, and eventually it will fall off. The more time it goes through, and the more positive information that is added, the better it is for you.

If you are in debt, you may want to consider debt settlement, debt management, or even bankruptcy. If you want to try reconstruction, make sure that you pay your loan and credit card bills on time every month. You should also try to get the balance down below 30 percent of your limit, and if you can get it even lower, that’s the best.

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