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What is a CPN and is it Legal?

December 20, 2022

Credit plays a significant role in our financial lives, and many people search for ways to improve their credit scores. One controversial method is using a Credit Privacy Number (CPN). In this blog post, we will explore the concept of CPNs, their legality, and alternative legitimate methods to rebuild your credit, including the Cheese Credit Builder.

What is a CPN and how does it work?

A Credit Privacy Number (CPN) is a nine-digit identifier that some people use in place of their Social Security Number (SSN) to protect their privacy when applying for credit. The primary goal of a CPN is to safeguard an individual's SSN from identity theft and maintain privacy. However, many people are lured into using a CPN number as a way to start fresh with a new credit profile, attempting to distance themselves from poor credit histories.

How to obtain a CPN

Obtaining a CPN can be quite obscure. Some online sources claim to generate CPN numbers or offer CPN setup services for a fee. However, there is no legitimate way to obtain a CPN that is legally separate from your SSN. Those who seek to learn how to get a CPN number for free or pay for one may fall victim to scams and illegal activities.

Is CPN legal?

CPNs, by themselves, are not illegal. However, using a CPN to deceive creditors or falsify information when applying for credit is fraudulent and illegal. Misusing a CPN can lead to serious consequences, including fines and imprisonment. Individuals who use a CPN to conceal their identity or misrepresent their credit history may face criminal charges. So, can you go to jail for using a CPN? The answer is yes if you use it for fraudulent purposes.

Does CPN help repair your credit?

Some people believe that a CPN can help them establish a new credit profile and boost their credit scores, often referring to CPN credit or CPN with a 700 credit score as desirable outcomes. CPN tradelines are sometimes advertised as a way to build credit quickly. In reality, using a CPN to build credit is not a legitimate solution. Attempting to create a new credit profile using a CPN is deceptive and may lead to legal consequences.

How are CPNs different from ITINs and Social Security Numbers?

CPN vs. ITIN: An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS). It is designed for individuals who do not qualify for an SSN but still have tax filing obligations in the United States. Unlike a CPN, an ITIN is a legitimate and legal identifier issued by the government.

CPN vs. SSN: A Social Security Number (SSN) is a unique identifier assigned to U.S. citizens, permanent residents, and temporary workers by the Social Security Administration. It is used for tax reporting, employment, and other purposes. A CPN, on the other hand, is not a government-issued identifier and does not hold the same legal status as an SSN or ITIN.

Legit ways to rebuild your credit

Establishing and maintaining a strong credit score is essential for securing loans, mortgages, and favorable interest rates. Although rebuilding credit may seem like a daunting task, there are legitimate and effective ways to improve your financial standing. In this section, we'll explore various strategies, such as using credit builder loans, maintaining a positive payment history, and diversifying your credit mix, to help you rebuild your credit in a responsible and sustainable manner.

  • Obtaining a secured credit card. This is an excellent option for people looking to rebuild their credit. They require a cash deposit as collateral, which also serves as the credit limit. By using a secured credit card responsibly, you can demonstrate good credit habits and improve your credit score over time.
  • Becoming an authorized user on someone else's account. If you have a family member or close friend with good credit, they may be willing to add you as an authorized user on their credit card account. This can help you establish a credit history and improve your credit score. However, it's crucial to ensure that the primary cardholder has a good payment history and maintains a low credit utilization ratio.
  • Try a credit builder loan. A credit builder loan is another great option for rebuilding credit. These loans are designed specifically to help individuals improve their credit scores. At the same time, you can save your money too. The Cheese Credit Builder, for example, is a product worth considering. It allows users to build their credit by making on-time payments without the need for an upfront security deposit or admin fees. 
  • Paying bills on time and in full. Paying your bills on time and in full is crucial for maintaining a good credit score. Late payments can negatively impact your credit and remain on your credit report for up to seven years. By consistently paying your bills on time, you demonstrate responsible financial behavior and help improve your credit score.
  • Reducing your credit utilization ratio. This is another way to boost your credit score. This ratio measures the amount of revolving credit you're using compared to your available credit limit. Aim to keep your credit utilization below 30% to show creditors that you're not overly reliant on credit.
  • Regularly monitoring your credit report. This is essential for catching any inaccuracies or signs of identity theft. You're entitled to a free credit report from each of the three major credit bureaus every year. Reviewing your credit report can help you identify areas where you need improvement and take steps to address them.
  • Diversifying your credit mix. Having a combination of different types of credit accounts, such as installment loans and revolving credit, can have a positive impact on your credit score. This demonstrates to lenders that you can manage different types of credit responsibly.

While CPNs may seem like a quick fix for poor credit, their use is not only illegal but also harmful to your financial health. Instead, consider legitimate methods to rebuild your credit, such as the Cheese Credit Builder, which can help you build credit over time. With no credit check and no admin fees, Cheese Credit Builder welcomes everyone to join and get credit prepared for their goals. Check it out today and start your credit-building journey! 

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