Personal Finance
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5 mins read
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April 09, 2021
What is a Credit Privacy Number (CPN)?
Everything you need to know about a CPN, why it’s best to steer clear of them, and what your alternatives are.
What is a CPN?
A Credit Privacy Number, or CPN, is a nine-digit ID number that some companies claim can be used in place of a Social Security Number (SSN). They are also known as Credit Protection Numbers or Credit Profile Numbers and claim to offer more privacy — which can be tempting if you have a poor credit score and are hoping to hide it. However, the truth is that CPNs are fraudulent.
Are CPNs Legal?
CPNs are not legal and are not a legitimate way to obtain credit or to restore your credit score. In fact, CPNs are recognized by the United States Federal Trade Commission as a scam. As such, they’re marketed as a method to prevent your bad credit history from affecting your quality of life.
Fraudulent credit repair companies claim that a CPN can be used to get loans, credit cards, and other financial products that people would ordinarily not qualify for with their SSN. But, the truth is that CPNs won’t help you improve your credit score and using one in place of your actual SSN is seen as a federal crime since you’re considered to be misrepresenting your SSN.
Can I Use a CPN to Purchase a New Car?
If you do try to use a CPN, chances are it’s a stolen SSN. This number was likely stolen by the company from a child, senior, prison inmate, or other people and, even if you don’t realize it, you could be charged in the United States for committing identity theft.
Moreover, a CPN is rarely free, while SSNs are, so you may wind up spending up to thousands of dollars obtaining a CPN (which should dissuade any stingy people).
Additionally, companies will encourage you to use an alternate address, email ID, or phone number when filling out applications with your CPN. While they may pretend that this is to protect your own privacy, the truth is that they are directing you to create a false identity.
So, while you likely may be able to use a CPN to purchase a new car, you absolutely should not since you will also find yourself in trouble with federal law.
Alternatives to a CPN
Instead of resorting to a CPN scam, consider repairing your credit score. Simply put, there is no alternative to using your SSN on applications, so you might as well commit to improving your credit score for the long-term.
First and foremost, remember that information on your credit report is not permanent. While it could stay on your report for up to ten years, it will eventually come off.
Moreover, you can erode any negative credit information by adding positive information to your credit report, such as timely payments that don't increase credit card debt, not opening too many new accounts, and keeping your credit balance low. An emergency fund can also help in these situations.
You can also dispute any incorrect information on your credit report to ensure that you are empowered to read your credit report and understand what it says.
Ultimately, CPNs aren’t legal and resorting to using one will only land you in more trouble. Be wary, too, of a company that asks you to apply for an Employer Identification Number (EIN). While EINs are legal and businesses use them when reporting with the IRS, people cannot use them as substitutes for a SSN.
Instead, focus on repairing your credit and finding a family member or trusted friend to cosign a lease or other documents with you until your credit score improves. While rebuilding credit takes time, just be consistent and your credit score will gradually get better.
