What Is a Credit Profile Number and Is It Legal?
Understand Credit Profile Numbers (CPNs): what they are, how they differ from official identifiers, and their true legal implications.
A Credit Profile Number (CPN) is a term frequently encountered by individuals seeking to manage their financial standing, often presented as an alternative to traditional identification for credit purposes. This article aims to clarify what a CPN is, how it differs from official identifiers, and its legal standing within the financial system. Understanding these distinctions is important for navigating personal finance and avoiding misinformation.
Defining a Credit Profile Number
A Credit Profile Number (CPN) is marketed as a nine-digit number to be used in place of a Social Security Number (SSN) for credit applications. Proponents claim a CPN provides a separate identity, allowing individuals to establish a new credit history independent of any prior financial challenges or negative credit marks associated with their SSN.
CPNs are presented as a way to bypass existing credit reports and secure loans, credit cards, and other financing without scrutiny of one’s financial past. This concept appeals to those facing difficulties obtaining credit due to poor scores or adverse financial events. The number is often presented as a unique identifier, similar in format to an SSN, creating an illusion of legitimacy.
Distinguishing CPNs from Official Identifiers
Legitimate identifiers for financial purposes are issued by government agencies. A Social Security Number (SSN), issued by the Social Security Administration, is a nine-digit number for tracking earnings and administering benefits. The SSN serves as the primary identifier for individual credit reporting and is recognized by credit bureaus and financial institutions for verifying identity and assessing creditworthiness.
The Internal Revenue Service (IRS) issues the Employer Identification Number (EIN), a nine-digit number assigned to businesses for tax purposes, such as reporting employment taxes or opening a business bank account. An EIN is exclusively for entities, not individuals seeking personal credit. Similarly, an Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the IRS to non-citizens who require a U.S. taxpayer identification number but are ineligible for an SSN. While an ITIN is used for tax reporting, it is not intended for establishing a separate credit identity or circumventing the use of an SSN for personal credit applications.
In contrast, CPNs are not issued by any government agency, such as the Social Security Administration or the Internal Revenue Service. They lack legal basis or official recognition from credit bureaus like Experian, Equifax, or TransUnion, or from legitimate financial institutions. The absence of governmental oversight means CPNs do not carry the same legal standing or verification capabilities as an SSN, EIN, or ITIN.
The Legal Standing of Credit Profile Numbers
Credit Profile Numbers are not legitimate financial instruments and are widely associated with fraudulent activities. Credit bureaus, including Experian, Equifax, and TransUnion, do not recognize CPNs as valid identifiers for credit reporting or establishing a credit history. Legitimate lenders and financial institutions rely exclusively on government-issued identifiers, primarily the Social Security Number, to verify an applicant’s identity and assess creditworthiness.
The creation and use of CPNs frequently involve deceptive practices, such as using stolen Social Security Numbers or manipulating personal information to generate a new identity. This constitutes identity theft and credit fraud, as it attempts to mislead lenders about an individual’s true financial standing. Federal law enforcement agencies, including the Federal Bureau of Investigation (FBI) and the Department of Justice, actively pursue and prosecute individuals involved in CPN schemes.
Using a CPN to apply for credit is considered an attempt to defraud lenders by providing false information on a credit application. This can lead to severe legal ramifications, including federal charges for identity theft, mail fraud, wire fraud, or making false statements to a financial institution.
Convictions for such offenses can result in substantial fines, significant prison sentences, and a permanent criminal record. The legal system views the use of a CPN as a deliberate effort to bypass established financial regulations and legitimate credit assessment processes, which carries serious consequences.