What is a CPN Number and Are They Legal?

Is using a CPN legal?

Using a CPN is illegal and can result in fraud or identity theft. While CPNs are often sold as ways to repair, hide, or erase your credit, they are not legal. It is considered fraud to use a CPN in place of your social security number (SSN), such as to open credit cards or apply for loans. Many CPNs are stolen SSNs, so using one can cause you to accidentally commit identity theft, too. 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.

Are CPNs legitimate?

A CPN is not a valid identifier and is usually sold as a scam. No government agencies issue CPNs. In fact, the Federal Trade Commission (FTC) considers using CPNs as a credit repair scam. Credit repair companies and other organizations often sell CPNs to vulnerable people who have poor credit or are in financial trouble. A CPN seller may say that a CPN is an alternative to an SSN that can help you hide or clean up your credit.

How to Avoid a CPN Scam

Avoid companies offering alternatives to using an SSN. Know that it is illegal to misrepresent your SSN on credit card and loan applications. 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. 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. 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. Note: If you come across a CPN scam, report it on the FTC’s website.

What is a CPN?

A CPN, or credit privacy number, looks similar to an SSN. CPNs are 9-digit numbers that are typically 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. Using a CPN is believed to make it harder for credit bureaus to match your credit history to your identity. A CPN is also called a consumer profile number, credit profile number, or credit protection number.

Ways to Improve Your Credit

Check for errors on your credit report and dispute them. Regularly get free credit reports from AnnualCreditReport.com. Look for any inaccuracies about your credit history on your report, like not making payments on time. Then, write a letter to the credit bureau to dispute the mistake. 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. 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.

Pay off your credit loans each month. Making on-time payments on your credit card and other credit loans improves your credit score. Set up automatic payments with your credit company to ensure you pay at least the minimal amount due each month. Alternatively, set reminders on your phone or calendar to pay off your credit on time.

Maintain your credit balance below your credit limit. Maxing out your credit card and other credit loans each month can lower your credit score. Most credit experts recommend keeping your credit balance below 30% of your total credit limit. For instance, if your credit card limit is $1,000, keep your balance at or below $300 each month.

Keep your credit cards open. 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. Plus, it establishes a longer credit history showing credit bureaus that you pay off your balance on time.

Apply for new credit only when you need it. 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. So, avoid opening new lines of credit as you improve your score. In general, apply to a maximum of 1 to 2 lines of credit every 6 months, if necessary.

Establish a mix of credit. 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. The extent of your credit mix depends on your age, lifestyle, and financial situation.

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. 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.