What is a CPN and Is It Legal?

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How to avoid CPN scams & improve your credit
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A CPN, or credit privacy number, is a 9-digit number that looks similar to a social security number (SSN). While CPNs are often marketed as ways to repair your credit and hide your identity, they are not legal and are typically sold as scams. Using a CPN in place of your SSN on credit loans can cause you to commit fraud or identity theft. In this article, we’ll go over what CPNs are, why they’re illegal, and provide you with simple and legitimate ways to improve your credit score.

What Are Credit Privacy Numbers?

A credit privacy number, or CPN, is typically marketed as an alternative to your social security number (SSN). CPNs are usually sold as scams by credit repair companies to hide or fix your credit, but they are not legal. Using a CPN can be considered fraud or identity theft.

Section 1 of 5:

Is using a CPN legal?

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  1. Using a CPN is illegal and can result in identity theft or fraud. Many CPNs are actually stolen social security numbers (SSNs). So, using a CPN can cause you to accidentally commit identity theft. [1] Using a CPN in place of your SSN, such as to open credit cards or apply for loans, is also a type of SSN misuse which is considered fraud. [2]
    • People who sell CPNs often steal SSNs from children, the elderly, and people who’ve passed away.
    • Committing fraud or identity theft can result in fines or prison time. [3]
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Section 2 of 5:

What are CPNs used for?

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  1. CPNs are 9-digit numbers that are usually sold by credit repair companies as an alternative to your SSN. They are marketed as a way to hide your identity or clean up your credit score so you’re more likely to be approved for a credit card, loan, or other credit service that requires your SSN. [4]
    • A CPN is also called a consumer profile number, credit profile number, or credit protection number.
    • Using a CPN is believed to make it harder for credit bureaus to match your credit history to your identity—but that's because they're fake numbers or stolen SSNs, and using one is against the law.
Section 3 of 5:

Are CPNs legitimate?

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  1. No government agencies issue CPNs. In fact, the Social Security Administration considers using CPNs as a credit repair scam. [5] Credit repair companies and other organizations often sell CPNs to take advantage of people who have poor credit or are in financial trouble, which can hurt them further. [6]
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Section 4 of 5:

How to Avoid a CPN Scam

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  1. Avoid companies offering alternatives to using an SSN. Know that it is illegal to misrepresent your SSN on credit card and loan applications. [7] If a credit repair company or other business tells you about an identifier that you can put on applications in place of an SSN, avoid them. [8]
    • There is no legal substitute for your SSN. Even legitimate identifiers, like Employee Identification Numbers (EINs), are illegal to use in place of your SSN.
    • Avoid companies that promise to erase your credit history to avoid being scammed , too. [9]
    • Always be wary of companies that ask for money upfront before they perform a service for you.
    • According to the FTC, you can do the same (legal) things to improve your credit that most credit repair companies advertise for free or little money. [10]
    • Note : If you come across a CPN scam, report it on the FTC’s website .
Section 5 of 5:

Ways to Improve Your Credit

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  1. 1
    Pay as much of your balance as you can each month. Set up automatic payments with your credit company to pay at least the minimal amount due each month, if possible. Making on-time payments on your credit card and other credit loans helps you stop accruing interest, reduce your debt, and improve your credit score. [11]
    • When possible, pay a little more than the minimum amount due. Your credit score typically gets a bigger boost when you pay off more of your balance.
    • Alternatively, set reminders on your phone or calendar to pay off your credit on time.
  2. 2
    Pay off debts with higher interest rates or lower balances first. Choose a payment strategy to help bring down your debt faster. Depending on what works best for your financial situation, you might: [12]
    • Use the “Avalanche” method : Pay as much of the balance as you can on the line of credit with the highest interest rate. When you pay it off, focus on the debt with the next highest interest rate.
    • Use the “Snowball” method : Pay as much of the balance as you can on the line of credit with the lowest balance. When you pay it off, focus on the debt with the next lowest balance.
  3. 3
    Set a budget for yourself to help save money. Creating a budget shows you all of the income you bring in, the expenses you have to pay, and the extra goods and services you buy each month. This can help you determine your spending habits, find areas to cut back on, and put more money towards paying off your debts. [13]
    • For instance, you might find that your daily coffee run comes out to $100+ each month. Cutting back on this expense can save you a significant amount of money!
  4. 4
    Ask your credit lender for assistance. If you’re feeling overwhelmed by your debt, reach out to your credit lender about what they can do to make paying off your balance easier. They might be able to lower your interest rate or reduce your payments as you get back on your feet. [14]
    • Ask your lender if the payment plan might affect your credit score or if it incurs any fees.
  5. 5
    Keep your credit balance below your credit limit. While paying off your debts, try to avoid maxing out your credit card and other credit loans, as this can lower your credit score. Most credit experts recommend keeping your credit balance below 30% of your total credit limit. [15]
    • For instance, if your credit card limit is $1,000, aim to keep your balance at or below $300 each month.
  6. 6
    Leave your credit cards open instead of closing them. Don’t close out your credit cards, even if you aren’t using them. Keeping them open gives you access to more credit, helping you keep your balance below each card’s limit. [16] Plus, it establishes a longer credit history showing credit bureaus that you pay off your balances on time. [17]
  7. 7
    Check for errors on your credit report and dispute them. It’s completely free to get credit reports from AnnualCreditReport.com . Look for any errors on your report, like not making payments on time. [18] Then, write a letter to the credit bureau to dispute the mistake . [19]
    • You can check your credit score for free once per week from each of the 3 main credit bureaus: Equifax, Experian, and TransUnion.
    • Requesting your credit report does not affect your credit score. [20]
    • Note : You can’t remove negative information, like bankruptcy, from your report if it’s true. However, negative information does go away from your report after 7 to 10 years.
  8. Applying to a lot of new loans and credit cards over a short amount of time can negatively impact your score, as it can make it look like you’re in financial trouble. If possible, avoid opening new lines of credit as you improve your score. [21]
    • In general, apply to a maximum of 1 to 2 lines of credit every 6 months, if necessary.
  9. Having a diverse mix of credit also helps improve your credit score, showing credit bureaus that you can pay off different types of credit on time. Your mix might include a credit card, a car loan, student loans, and a mortgage. [22]
    • The extent of your credit mix depends on your age, lifestyle, and financial situation.
  10. 10
    Get help from a reputable credit counseling organization. If you’re having trouble building up your credit score by yourself, reach out to a legitimate credit counseling program offered by your credit union, university, or institution. They can help you come up with a plan to improve your financial situation. [23]
    • A reputable credit counseling organization will not promise to clear away your credit, solve all of your problems, or ask for money before performing their service.
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      Warnings

      • Do not purchase, obtain, or use a CPN. Using a CPN in place of your SSN is not legal and can result in committing fraud or identity theft. [26]
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      References

      1. ↑ https://oig.ssa.gov/assets/uploads/2011-09-01_field-hearing-on-social-security-numbers-and-child-identity-theft_robert-feldt-and-antonio-puente.pdf
      2. ↑ https://oig.ssa.gov/fraud-reporting/fraud-categories/
      3. ↑ https://www.justice.gov/criminal/criminal-fraud/identity-theft/identity-theft-and-identity-fraud
      4. ↑ https://www.nerdwallet.com/article/finance/credit-privacy-number-cpn
      5. ↑ ​​ https://oig.ssa.gov/assets/uploads/2011-09-01_field-hearing-on-social-security-numbers-and-child-identity-theft_robert-feldt-and-antonio-puente.pdf
      6. ↑ https://www.nerdwallet.com/article/finance/credit-privacy-number-cpn
      7. ↑ https://oig.ssa.gov/fraud-reporting/fraud-categories/
      8. ↑ https://consumer.ftc.gov/articles/fixing-your-credit-faqs
      9. ↑ https://www.ftc.gov/news-events/topics/consumer-finance/debt-relief-credit-repair-scams
      1. ↑ https://consumer.ftc.gov/articles/fixing-your-credit-faqs
      2. ↑ https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-and-keep-a-good-credit-score-en-318/
      3. ↑ https://www.cnn.com/cnn-underscored/money/paying-off-credit-card-debt
      4. ↑ ​​ https://consumer.gov/managing-your-money/making-budget
      5. ↑ https://consumer.ftc.gov/articles/how-get-out-debt
      6. ↑ https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-and-keep-a-good-credit-score-en-318/
      7. ↑ https://www.cnn.com/cnn-underscored/money/closing-a-credit-card
      8. ↑ https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-and-keep-a-good-credit-score-en-318/
      9. ↑ https://consumer.ftc.gov/articles/fixing-your-credit-faqs
      10. ↑ https://consumer.ftc.gov/articles/disputing-errors-your-credit-reports
      11. ↑ https://www.consumerfinance.gov/ask-cfpb/does-requesting-my-credit-report-hurt-my-credit-score-en-1229
      12. ↑ https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-and-keep-a-good-credit-score-en-318/
      13. ↑ https://www.npr.org/2020/11/09/933053299/tricks-to-improve-your-credit-score
      14. ↑ https://consumer.ftc.gov/articles/fixing-your-credit-faqs
      15. ↑ https://www.irs.gov/individuals/individual-taxpayer-identification-number
      16. ↑ https://www.irs.gov/individuals/additional-itin-information
      17. ↑ https://oig.ssa.gov/assets/uploads/2011-09-01_field-hearing-on-social-security-numbers-and-child-identity-theft_robert-feldt-and-antonio-puente.pdf

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