What is a Credit Privacy Number?

Have you ever heard of a Credit Privacy Number? Perhaps from TikTok or a money-savvy blog?

Credit Privacy Numbers have gained notoriety recently in the United States as a purported quick fix for people with damaged credit or those with privacy concerns.

They’re marketed as an alternative to using your Social Security number on credit applications, but government agencies do not issue CPNs, and the CPN industry often involves fraudulent practices.

How do CPNs work?

CPN sellers get their clean numbers by generating a random unassigned number or, more insidiously, by harvesting an actual SSN that hasn’t been used for credit, like an SSN issued to a child. Or worse, a deceased child.

Clients are told to use their new CPN in place of their Social Security number on applications, sometimes along with a new mailing address, phone number, or email to further create a separate persona.

Sometimes these schemers like to add “seasoned” tradelines, which is just a fancy way of saying that they make the person an authorized user on an established credit account. Then, when the landlord or lender checks the applicant’s credit, the CPN-linked report shows positive history.

Why sell CPNs?

CPNs represent a way to wipe the slate clean (for a price). Legitimate SSNs are free from the government, whereas CPNs can fetch hundreds or thousands of dollars.

Advertisements claim a CPN can instantly boost your credit score, qualify you for high-limit credit cards, or “get you into an apartment” despite past problems.

But to use a CPN, you must lie on applications by providing false personal data so that creditors pull the fabricated credit profile instead of the real one, which is fraud.

Why You Might Want to Use a CPN for Rentals

Given the above, why would anyone use a CPN when they apply for an apartment rental?

For starters, the appeal of CPNs largely stems from desperation or misinformation.

Landlords typically run credit checks on prospective tenants. Still, if your credit report is poor, showing a history of late payments, collections, a past eviction, or bankruptcy, you will probably be rejected when trying to rent (repeatedly). With a fake number, you can theoretically bypass the bad report and get housing. That’s the allure.

Other people might have no credit problems but are rightfully uncomfortable about sharing their Social Security number across multiple rental applications due to identity theft concerns. CPN sellers exploit this concern and falsely claim that a CPN is a legal way to keep your SSN secret while still providing a number on the application.

How do you apply for an apartment with a CPN?

Applying for an apartment with a CPN involves all the same steps as a normal rental application. The only difference is that you’ll need to substitute the Social Security Number with the CPN.

1. Contact the Property Owner or Property Management Company

The first step is to contact the landlord or property manager to inquire about the rental and obtain an application.

Prospective tenants using a CPN may choose properties managed by individual landlords or smaller companies, hoping those landlords have less rigid screening processes. Some may even ask whether the landlord can accept an alternative form of identification.

2. Fill Out the Rental Application

The next step is to fill out the rental application form with the usual personal details. But instead of writing down your social, you’ll write down the 9-digit CPN.

Keep in mind that CPNs themselves aren’t illegal, but using them is. Using a CPN in place of a SSN means you’re committing fraud and a social security scam. CPNs are also often associated with identity theft, so despite not having any desire to hurt others, you may still be victimizing an unsuspecting child or individual while trying to evade your own credit history.

Law enforcement agencies and regulators have been cracking down on CPN fraud. Some people, like Timatress Cade, have been prosecuted and sentenced to prison for using CPNs.

3. Understand Employment Requirements

Whether or not someone uses a CPN, employment verification is part of the rental application process. Landlords will have their applicants report where they work and how much they earn. They want to see that the applicant has stable employment and makes a sufficient income of 2.5 to 3x the rent.

4. Be Prepared to Show Past Two Years of Rental History

Landlords like to see a rental history that shows the applicant was a responsible tenant in the past, which could include references from previous landlords or proof of on-time rent payments.

If you’re using a CPN, your credit report might not show any prior addresses tied to your real SSN since it’s a new profile. With that in mind, landlords will rely even more on what you provide as rental history.

5. Show Past Pay Stubs

In addition to employment information, landlords typically request recent pay stubs or alternative proof of income. If you are self-employed and cannot provide pay stubs, you may submit bank statements or tax returns instead.

A CPN does nothing to bypass income checks. Landlords may still deny an applicant with a great credit score but no verifiable income. Besides, using a CPN cannot magically fabricate a job or salary. Some fraud rings know this and include phony pay stubs or employment letters in their “apartment package” of falsified documents. As tempting as it may be, avoid going this route.

Are CPNs risky for landlords?

The National Multifamily Housing Council found that 93% of landlords experienced fraud in the past 12 months, and 70% of applicants used some form of identity theft. So this sort of thing is extremely common.

If you can avoid it, never rent to someone using a CPN.

As the landlord, you may not know the true identity or background of the person you are renting to. If a tenant provides false identity information using a CPN or a fake SSN, credit and criminal background checks will be tied to someone who doesn’t exist or to an unrelated person. Making a decision based on fabricated data is never risk-free.

In addition to trustworthiness, there is also the risk of financial loss. If someone felt the need to use a CPN to qualify, it often means their actual credit history has serious issues. Those issues could predict future behavior. For example, a tenant with a history of non-payment might not pay rent this time around, either.

How to Manage the Risk as a Landlord

1. Collect SSNs from all applicants. Deny any applicant who attempts to use alternatives, such as a CPN number.
2. Get a photo ID (driver’s license, state ID, or passport), then cross-check that the name and date of birth on the ID are the same as on the rental application.
3. Check your applicant’s credit and background, first and foremost. It’ll also be helpful to see if they have a history of evictions. Take the time also to verify their income and workplace, and any personal references they include in the application.
4. Report an applicant to the authorities if you find out that they used a CPN in their application.

What is a Credit Privacy Number? FAQs