Ultimately, if you use the number they sell you, you risk fines or jail time. "First of all, if you`ve already purchased a CPN, don`t use it for any purpose. It can`t be legally used in place of your VMS to apply for a loan, and it may very well be someone else`s stolen VMS. You do not want to engage in potentially illegal or fraudulent activities using the CPN. Using a CPN for a loan or loan application instead of your SSN clearly misrepresents your Social Security number, which, as the FTC notes, is illegal. "If a company promises to create a new credit identity or hide your bad credit history or bankruptcy, that`s also a scam. These companies often use stolen Social Security numbers, or they trick people into applying for Employer Identification Numbers (EINs) from the IRS under false pretenses. They do this to create new credit reports. If you use a number other than your own [SSN] to apply for a loan, you won`t get it. And you could face fines or jail. To find out if NPCs are legitimate and legal, we can contact the highest authorities directly to see the official policy in writing. In this case, the highest authorities are the Federal Trade Commission (FTC) and the Social Security Administration (SSA). The best way to protect yourself from CPN scams is to make sure that CPNs don`t exist and that anyone who uses them is a scammer.
But it also helps to know some of the tricks used by scammers to trick you into believing them. You may be told that a CPN number can help you get rid of your bad credit score or leave your bad credit history in the past. Fraudulent companies can also tell you that it`s legal to use a CPN instead of your Social Security number when it`s actually a scam, and you can even be charged with identity theft because the CPN number provided to you is often actually an SSN of a deceased person. While credit repair companies and other businesses selling them may seem legitimate, buying a fraudulent SSN is not legitimate, which is a CPN. A Social Security number is a government identification number, and the government does not "sell" these numbers or offer CPN applications. Federal law allows an individual to legally use a private identification number instead of their Social Security Number (SSN) for financial reporting purposes. Although many companies advertise that the PRC is legal, the relevant federal authorities have clearly stated that this is not the case. CPN stands for a credit privacy number – it`s essentially a nine-digit number that can be used in place of your Social Security number on loan documents.
Sometimes you may also see people referring to NPCs as secondary credit numbers (SNAs) or credit profile numbers. The Credit Privacy Number (CPN)/Secondary Credit Number (SCN) is a nine-digit number that has exactly the same genetic makeup as a Social Security Number (SSN). It is not a government-issued number like an ON or TIN. This number is NOT a new Social Security Number (SSN) and NOT a Tax Number or EIN. It is simply a file number available from credit bureaus that can report financial information. You have the right to set this number only once, so don`t abuse it. This statement is not there to advise anyone to distort your Social Security Number (SSN), as you are fully responsible for any debt you incur with your CPN/SCN number. This is a 12-year-old document that discusses a limited use case for a CPN. There are extreme cases (witness protection) where a CPN may be authorized, but in all these cases it would be issued by the SSA. A person cannot buy or invent a CPN number whenever they feel like it and use it as an alternative SSN. With so many fraudulent websites and companies trying to sell you a way to reset your balance, it`s hard to know how to get a legal CPN. Unfortunately, there is a lot of misinformation.
Some experts say you can talk to a lawyer to get a legal CPN. The lawyer can then contact the Social Security office on your behalf. However, others claim that all NPCs are illegal. Unfortunately, if you haven`t bought a CPN yet but have thought about buying one because you have bad credit, there is no silver bullet for bad credit. However, there are many safe and legal strategies you can use to repair your credit and build your credit profile over time so that you can eventually successfully apply for a loan with your own SSN and credit profile. When criminals or even unsuspecting consumers use a child`s Social Security number to get loans and don`t pay the debt, it leaves a lasting negative mark on the child`s record. When the child grows up, he may be suspected by lenders and have difficulty building credit because of the pejorative elements of his file. For example, fraudsters could combine one person`s address with another person`s phone number and a third party`s social security number (or CPN). This newly created fake identity can then be used to open credit accounts and make thousands of dollars in fraudulent purchases, followed by late payments. For those who would benefit from a CPN, they are free of charge and provided by the Office of Social Security Administration.
You cannot purchase a legal CPN over the Internet to improve your credit score. It`s a scam! Don`t trust websites or companies that claim to be able to give you a CPN for a credit reset. In addition, according to the IRS, "employer identification numbers are issued for tax administration purposes and are not intended to participate in other activities… Businesses can get loans tied to their EIN, but individuals can`t use an EIN as an alternative social security number to get a personal loan or line of credit. Unfortunately, I suffered a significant loss of income a few years ago. As a result, I lost my home to foreclosure and had to declare bankruptcy. I am finally in a financial situation where I can start rebuilding my credit. A friend of mine suggested I get a CPN number because my previous credit problems are not visible. What is a CPN number and is it legal? Websites have sprung up all over the Internet, offering NPCs for people with bad credit or low credit scores. You advertise that this number can be used as a "get out of jail free" card for your bad credit.
Theoretically, you can use a CPN instead of your SSN for loan applications to mask the bad credit associated with your personal SSN. If you have bad credit but still need a credit card or loan, this may seem like the answer, assuming you can pay hundreds to thousands of dollars. When you get a new Social Security number, your new number is still linked to your old number`s credit profile, and both get special indicators to help alert creditors to this change, so it wouldn`t work as a way to leave your credit history behind. The NPC does not replace a Social Security Number. It creates a profile on which loans can be built, but it is still part of your underlying credit profile and will not eliminate any previous credit history in any way. Any debts you incur in the past and in the future remain your responsibility. The use of CPP is strongly associated with a new form of fraud called synthetic identity fraud. Although this is a relatively new phenomenon, the government is quick to catch up with the illegal companies that sell these NPCs that help those who want to synthesize a new identity for financial gain.
Court cases as late as September 2020 show that those who engage in this type of fraud can face hefty fines and jail time. This price seems worth wiping the board. However, these offers are essentially a big scam. The CPNs you can buy online are not legally assigned warranty numbers. Instead, they are usually stolen Social Security numbers taken from children, deceased or inmates. Since lenders can see your address, name, date of birth, and other information than your Social Security number, they can easily determine that you used an incorrect Social Security number because they have other information they can use to verify your identity. For this reason, some CPR providers encourage their customers to change their name and address. If a company that sells CPNs advises you to fake your address, phone number, or anything else regarding your current identity, it`s a big red flag that they could be committing fraud — and involving you in the process. If you`re looking for a quick fix to pay off your debt or fix a bad credit score, there`s no silver bullet. Not only will NPCs not solve your problems, but you could also have serious legal problems.
Instead, use the content in our knowledge center to work properly on building funds with your real SSN. In another example that took place in 2018, Calvin Wayne Cade, Jr. of Oklahoma City pleaded guilty to knowingly making a false statement to a financial institution using NPCs to forge its SSNs in loan applications. The NPCs he used were VMS stolen from children born in 2006 and 2008. By using a fraudulent number on loan applications, Cade deceived banks, credit card companies and retailers, thinking he had a better credit history than he actually had. The second most important part of your credit score is your credit utilization rate. The best thing you can do for your balance is to keep that number as low as possible using only a small fraction of your available balance. Check out our article on individual usage ratios versus overall utilization ratios for tips on how to maintain low credit utilization.
A Social Security number is the largest and most important personal identification number used in the United States. The government alone publishes these figures and they cannot be bought or sold on the open market. Misrepresenting your VMS has been defined by the government as a federal crime, so using a NPC instead of your VMS could also implicate you in a federal crime.