What is a CPN used for?
Definition
A CPN (credit privacy number) is a nine-digit number that sellers claim can replace your Social Security number to build a new credit file. The FTC says promises to create a new credit identity are a scam.
- Category
- Scams
- Also called
- credit privacy number, credit profile number, CPN number
- Last updated
Sellers pitch a CPN as a clean slate: use this number instead of your Social Security number, they say, and you can apply for credit with no history of past debts or bankruptcy. It's usually sold online for a fee, often wrapped in a "credit repair" package.
The FTC's credit repair guidance is blunt about this. A company that promises to create a new credit identity or hide your bad credit history is running a scam. The FTC adds that these companies often use stolen Social Security numbers, or get people to apply for Employer Identification Numbers (EINs) from the IRS under false pretenses. It also warns that if you use a number other than your own to apply for credit, you won't get the credit and you could face fines or prison.
What actually happens
The FTC says these sellers often use stolen Social Security numbers, so the number you buy may belong to a real person. Using it means you'd be applying for credit with an identity that isn't yours.
CPN vs. a credit freeze
A credit freeze is a free, legitimate tool that stops new accounts being opened in your name. A CPN is the opposite idea: a replacement identity for borrowing. Only one of them is a safe way to protect your credit.
Why it matters
Paying for a CPN usually means losing money and leaving your own credit unchanged. Worse, the number may be someone else's Social Security number, which is identity theft.
How to protect yourself
- 1
Don't buy or use a CPN
The FTC says a number other than your own on a credit application won't get you credit and can lead to fines or prison. Walk away from anyone selling one.
- 2
Fix real credit problems the free way
You can dispute errors on your credit reports for free, and nonprofit credit counselors can help with debt. Be wary of anyone who promises to hide accurate negative information.
- 3
Check your credit reports
Look for accounts you don't recognize on your credit reports, which you can get free from the official source, AnnualCreditReport.com.
- 4
Freeze your credit
A freeze is free and blocks lenders from opening new accounts in your name until you lift it.
- 5
Keep your personal data off people-search sites
Details like your Social Security number's owner, address and date of birth help fraudsters build fake files. Serus finds where your address and phone number are listed and removes them.
See where your personal data is exposed
Serus finds it on data brokers and people-search sites and removes it.
Frequently asked
Is a CPN legal?
Selling a CPN as a way to get a new credit identity is a scam according to the FTC, and using a number that isn't your own on a credit application can lead to fines or prison. For advice on a specific situation, talk to a lawyer.
Is a CPN the same as an SSN?
No. A Social Security number is issued by the Social Security Administration. A CPN is sold by private sellers.
Can a CPN fix bad credit?
No. The FTC says promises to hide your credit history or create a new credit identity are a scam. You can dispute mistakes on your reports for free.
What should I do if I already bought a CPN?
Stop using it, don't apply for credit with it, and report the seller to the FTC at ReportFraud.ftc.gov. Consider talking to a lawyer if you've already used it on an application.
Sources
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