Actually, with the growing concerns regarding identity theft, fraud, and data breaches, it is little wonder that people continue to look for ways through which their personal information can be secured. The recently introduced credit privacy number, or CPN, is among the tools developed for this end. They came to the fore as tools for rebuilding or securing credit and identity to protect themselves against identity thefts. Are these definite ways of holding on to the financial identity, or is this another form of scam?
Selling CPNs
Ordinarily, credit repair organizations advertise CPN numbers. Most of the targeted pitches assume that the sale of a CPN provides the individual an easy way “to start anew” and re-fix their credit. These firms typically sell in a package that can include promised tradelines- the credit accounts claimed to boost credit scores.
Of course, the person would be buying this CPN, which theoretically at least allows them to apply for new credit accounts where bad financial histories have no bearing.
While this might be tempting to those with bad credit, realize that most of these claims are misleading or fraudulent. The reality behind CPNs is far from simple, and the risks of using one can easily outweigh any benefits.
Risks: A Potential Scam
However, despite all these irresistible features, CPNs carry a tremendous burden with risks the consumer is unaware of. According to many experts, they are part of a scam and very often bring a person into legal trouble and cause significant financial damage. Here are some risks one goes through when using a CPN:
- Legal Risks: The most significant risk of using a CPN is that it may result in legal repercussions. While the CPN itself is not illegal, using it to defraud lenders, creditors, or credit bureaus is. For example, filling out a loan application with a CPN and claiming it as your SSN is considered identity fraud, which is a crime.
- Suppliers of Fraudsters: Most business enterprises that sell CPNs are criminals, and the only money made from that is for a fleeting moment, in which the consumer usually ends up being a victim either by compromise of their identity or financial losses.
- Damage to Credit: Most CPNs come with artificial or “clean” credit histories and do not accurately reflect your financial circumstances. This could compromise the credit reporting system, which may have closed or declined certain accounts because of credit. And because there are times when it may be proven that such a CPN has already been used, its damage to one’s credit is irreparable.
How to Secure Your Credit Without Using a CPN
Instead of the Credit Privacy Number, however, safer and more effective means to safeguard credit and re-establish a good reputation in financial matters are:
- Credit Monitoring: The best protection of your credit is through a credit monitoring service subscription. They monitor your credit report, and immediately, you are alerted if there happen to be some changes; this goes a long way in detecting the fraudulent activities that may be leading to identity theft at an early stage. This means one can identify mistakes appearing on your credit report that pull your scores if you monitor credit regularly.
- Identity Theft Protection Services: These services protect your identity by providing multiple layers of protection over personal information. These services will also alert you that fraud has been carried out by an unknown person using your SSN, credit card number, or any other information about you to carry out the scam.
- Reliable Credit Counseling: If a person has to improve their credit score, a licensed credit counselor can make a difference. They could prepare plans for clearing debts, how one should go about disputing any inaccuracies reported regarding credit accounts, and the steps taken to maintain their financial aspects to rebuild credit. More importantly, these reputed agencies can guide one in avoiding scams to build a better financial position over time.
- Credit Cards: You can fix your credits through secured credit cards. These require an initial deposit, and the amount you put down becomes the credit limit. You then use the card responsibly, and as you pay in good time, you slowly rebuild your credit score legally and effectively.
Conclusion: Is a CPN Worth the Risk?
Although credit privacy numbers are the ultimate way to keep your credit private, they are extremely dangerous and can result in legal trouble and financial damage. Many CPN number providers are fraudulent; getting credit with a CPN may lead to criminal charges. Moreover, CPNs do not deal with the actual economic problems that may be causing the problem with your credit.
Instead of cutting corners, which can be perilous, there are safer and more effective ways to protect your credit and rebuild your financial history. You can control your financial future responsibly and legally through legitimate tools, including credit monitoring, identity theft protection, and secured credit cards.
