Can You Get a Personal Loan With a CPN?

Having bad credit can hold you back from many financial opportunities, such as taking out a personal loan, but you can take steps to improve it. One option you might consider is to get a credit privacy number, or CPN—an option offered by disreputable credit repair companies. However, using a CPN can have serious legal consequences.

What Is a Credit Privacy Number (CPN)?

A CPN is a nine-digit number that’s crafted to look like a Social Security number (SSN). Fraudulent credit repair companies might try to trick you into buying a CPN as an alternative to putting your own SSN into a personal loan application. But a CPN is most likely a stolen SSN, which means you could be committing fraud when you use it. A good credit repair company will not offer you a CPN.

How Does a CPN Work?

If you’re trying to repair your credit score and history, a company might try to sell you a CPN to use on credit applications. The idea is that a CPN hides your bad credit score or any bankruptcies on your credit report from potential lenders or credit issuers. However, CPNs are able to do this because they're actually SSNs that belong to other people, often those stolen from children, prison inmates, or senior citizens.

How Are CPNs Different From ITINs and SSNs?

CPNs are visually similar to SSNs and Individual Taxpayer Identification Numbers (ITINs), in that they're nine numbers with dashes between them at specific intervals. Unless you're facing special circumstances, such as being the victim of identity theft, you’ll have the same SSN for your entire life. And while SSNs and ITINs are government-issued and legitimate, CPNs come from predatory companies that are marketing a product they’re promising will help you, when it actually will just make you party to identity theft.

Even if you do get a new SSN, your name and financial history are still tied to the old one. You’ll have that old SSN on file because it has a role in Social Security payments (when you’re eligible) and other important documents.

Can You Use a CPN to Get a Personal Loan?

While you technically can use a CPN to secure a personal loan without providing your own Social Security number or ITIN, that doesn’t mean it’s legal. Typically, the CPN you're given is someone else’s Social Security number. If discovered, you could be arrested and charged with identity theft or fraud.

How to Avoid Credit Repair Scams

Fixing your credit is a long-term process. There are rarely quick fixes to bad credit. If someone is trying to sell you something that seems too good to be true, it probably is. Look for signs of credit repair scams, which may include:

1. Required upfront payments: Any company that charges an upfront fee before providing a product or service is usually not a legitimate company.
2. Being encouraged to lie: If a company tells you to lie on credit applications, avoid contacting any of the major credit bureaus, or dispute information on your credit report (even when it’s accurate), you are likely dealing with a scammer.
3. Not understanding your rights: According to the Credit Repair Organizations Act (CROA), credit repair companies are required to explain your rights to you, how long changes could take, and what you’d be financially responsible for. You also legally have three days to cancel any services without facing charges, which legitimate companies are also required to tell you beforehand. 

How to Rebuild Credit the Right Way

Rebuilding credit takes time, but there are a few things you can do right now to start improving your credit:

1. Check your credit: You can pull your credit report for free from each of the three major credit bureaus from AnnualCreditReport.com. Look for any errors, such as listing debt you don't have or incorrect late payments. Report those errors to the credit bureau that issued that report.
2. Make on-time payments: Regular, on-time bill payments are the biggest factor in calculating your credit score. The more on-time payments you make, the more reputable you look to lenders. Even making the minimum payment on time shows lenders you’re being responsible with credit.
3. Lower your credit utilization: Keeping a high balance on your credit cards from month to month means you’re holding onto a high credit utilization ratio. This is how much credit you’re using compared to how much credit that’s available. A high credit utilization lowers your credit score, while a low utilization can boost your score.

The Bottom Line

A CPN comes from a disreputable credit repair company that requires upfront payment for a fraudulent number. These are usually SSNs belonging to someone else. This means that if you use one, you could be committing fraud, whether you intended to or not.

Avoid using a CPN and start rebuilding your credit the right way. Check your credit reports for free and report any errors you find. Make on-time payments every month on your extant debt, and do your best to lower your credit utilization rate. When you’re ready to get new lines of credit—like a credit card or a loan—make sure it fits into your budget and that you can responsibly make the minimum payments every month.