What is a credit privacy number (CPN)?

A credit privacy number, or CPN, is often advertised as a way to conceal a less-than-perfect credit history and help repair bad credit. When you’re trying to get approved for a loan or a line of credit, a CPN might sound appealing. But there’s a reason things that seem too good to be true often are.

What you’ll learn:

• A CPN is a nine-digit number that looks like a Social Security number (SSN).

• Some companies sell CPNs as a quick fix for bad credit or a way to hide bankruptcies.

• Using a CPN to conceal your credit history is illegal and may be considered identity theft.

• Building credit takes time and requires responsible credit habits, such as paying bills on time every month.

A CPN is a nine-digit number formatted like an SSN. CPN is a shortened name for credit privacy number, credit protection number or credit profile number. Regardless of the longer name, they are advertised as a way for people with poor credit histories to conceal their identity when applying for credit.

The problem is that CPNs may not be legal, and they could be generated from stolen SSNs.

Certain companies may sell CPNs. But SSNs and Individual Taxpayer Identification Numbers (ITINs) are provided through official government agencies.

The Social Security Administration provides SSNs to U.S. citizens, international students, foreign workers and others. SSN holders can file taxes, open bank accounts, apply for loans and more.

CPNs may be marketed as a substitute for SSNs, but they’re not a valid alternative.

The IRS issues ITINs to certain non-U.S. residents, resident aliens, their spouses and dependents if they aren’t able to get an SSN. ITINs have nine numbers and are formatted similarly to SSNs. But they start with the number 9. 

Like SSNs, ITINs are valid government identification numbers. CPNs aren’t backed by the government.

So-called credit repair companies claim CPNs can hide bankruptcies or poor credit. But CPNs are often related to other types of scams. Credit reports will still show any debts and bankruptcies. And misrepresenting your SSN on a credit application is a federal crime.

There are very few situations in which an individual would be granted a new SSN. Restarting your credit isn’t one of them.

Even in those specific situations where someone might need a new SSN, the process isn’t easy. And if it does occur, your identity will still be attached to your old SSN.

Selling CPNs as a way to repair credit is illegal. So is using a CPN to attempt to hide credit history. Only government-issued identification, such as SSNs or ITINs, are legal to use on financial applications.

What’s more, many companies that sell CPNs may actually be selling stolen SSNs.

A common credit repair scam involves asking someone to pay a large sum of money or provide false information on a credit application to hide their credit reports. But this runs the risk of committing identity theft.

According to the Federal Trade Commission (FTC), the Credit Repair Organizations Act forbids credit repair companies from offering deceptive services. Here are some additional red flags to watch out for:

• Required payment before any work is actually done

• No written contract

• Impossible promises, such as removing factual information from your credit file

If you’ve been a victim of identity theft, you can report it to the FTC online or by phone. You should also contact the three major credit bureaus:

• Equifax®: Visit the Equifax website and click on “Freeze your Equifax credit report” or “Add a fraud or active duty alert” to help prevent unauthorized access to your credit report. 

• Experian®: Experian offers several options on their website to report fraud and protect your credit information, including freezing your credit, setting up fraud alerts and learning how to respond to identity theft.

• TransUnion®: On TransUnion’s website, you’re able to freeze your credit, set up a fraud alert and more.

Thankfully, there are many ways to build credit. Here are a few strategies from the Consumer Financial Protection Bureau (CFPB):

• Always pay your bills on time. Making on-time payments is essential for healthy credit. To help make sure you don’t forget, you could set up automatic payments or reminders.

• Keep your credit utilization ratio low. Carrying a high balance on your cards can increase your credit utilization ratio and lower your credit scores. The CFPB says it’s best to use no more than 30% of your available credit limit. 

• Only apply for credit you need. If you apply for a lot of credit in a short amount of time, it could make it look like your financial situation has worsened. So it may be worth holding off on opening any new accounts while you try to rebuild your credit.

• Check your credit reports for errors. Monitoring your credit reports can help you spot mistakes or inconsistencies. So if you notice something looks off, be sure to report it and get it corrected as soon as possible.

• Seek out credit counseling. Consider speaking to an accredited credit counselor about things like managing debt and building your credit.

Here are answers to some common questions about CPNs:

Some companies may offer CPNs to take advantage of those who feel overwhelmed trying to build their credit, whether it’s for the first time or after a drop in their scores. But using a CPN for a credit application might be considered identity theft. And misrepresenting your SSN is a federal crime.

There are ways to build or rebuild credit over time, including using a credit card responsibly.

If you’re new to credit or searching for your next credit card, Capital One can help: 

• See if you’re pre-approved for credit cards without harming your credit scores. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

• Earn unlimited 1.5% cash back on every purchase, every day with a cash back rewards card. 

• Monitor your credit report and score with CreditWise from Capital One. It’s free for everyone, and using it won’t hurt your credit.