Credit Privacy Number: A CPN Is a Scam, Not a Solution
CPNs are marketed to people who want to rebuild their credit. NerdWallet’s advice is to steer clear and restore credit with trusted methods.
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A credit privacy number, or CPN, is a nine-digit identifying number similar to a Social Security number.
A CPN is frequently marketed to consumers with bad credit as a path to a fresh credit history.
Companies offering CPNs say they can be used instead of a Social Security number on applications for credit, but those CPNs are often stolen Social Security numbers.
How a CPN works
A credit privacy number doesn’t actually serve any legitimate purpose, but some companies market and sell them as a quick fix for credit problems — under the false promise of credit repair.
These companies say people looking to rebuild their credit can purchase a CPN and then use that number — instead of their Social Security number — when applying for new credit or getting better rates and loan terms.
The lender won’t know that the person applying has a poor credit score or history of credit missteps because the CPN hides that past under a new identity.
Why CPNs are a scam
Companies create and sell CPN numbers, but their methods are often fraudulent. Some CPNs are unused Social Security numbers stolen from children, prison inmates and older adults.
These Social Security numbers are targets for CPN sellers because they are active and either not on file with the credit bureaus or have a positive credit history.
When you purchase a CPN, you unknowingly become involved in identity theft and break other laws, including fraud and making false statements to the government.
CPN vs. Social Security number
It is important that you use only government-issued forms of identification when applying for credit.
A Social Security number is one of several identifiers credit bureaus use to be sure they have the right person. It’s issued by the government for free and is linked to a person’s credit history.
CPNs are not issued by the government and often come at a cost. It is illegal to use a CPN instead of a Social Security number to try and create a new identity with a fresh credit profile.
Getting a new Social Security number isn’t something that happens often — it’s only allowed in certain situations.
These might include identity theft, ongoing harassment or abuse, mix-ups from two people having the same number, confusion caused by similar numbers in a family, or cultural or religious concerns about the number itself.
How to avoid a CPN scam
It's tempting to look for a fast and easy solution when you are in financial trouble, but there are red flags that can help you spot a CPN scam before you become complicit.
Avoid companies that:
Promise quick fixes: Be careful of any company that promises a “new credit identity” quickly. There’s no such thing. Your credit profile is yours for a lifetime and is build through persistence and time.
Require advanced payments: Know your rights under the Credit Repair Organization Act, which among other protections makes it illegal for credit repair agencies to charge you before they’ve performed services.
Are too vague: Can't find a physical mailing address? Can't get direct answers to your questions? These are probably signs that this company is running a scam.
Apply a lot of pressure: Any company selling CPNs that urges you to act quickly and puts pressure on you to make a decision before you're ready is probably not on your side.
Boost your credit without using a CPN
There is not a legal way to start with a blank slate for credit if the information in your credit reports is accurate. If there are mistakes or inaccuracies in your credit reports, dispute errors immediately with the three major credit bureaus — Experian, Equifax and TransUnion.
» Get a free credit report from NerdWallet
The good news is that most negative information on your credit reports will drop off eventually. Derogatory marks usually fall off in seven years.
The more time goes by, and the more positive information you add to your credit reports (in the form of on-time payments and keeping your debt low), the less impact negative marks have on your scores.
If you have debt, explore all your options, including paying it off yourself, or consider debt relief methods such as bankruptcy, debt management or debt settlement.
Rebuilding credit takes time. The very best things you can do are make on-time payments and keep your credit utilization, or the amount of available credit you’re using at a given time, below 30%.
Do those things consistently, over time, and your credit score will take care of itself — no gimmicks needed.
» Dive deeper: How to pay off debt