Credit Privacy Numbers - Why Celebrities and Politicians Use Them

Credit Privacy Numbers - Why Celebrities and Politicians Use Them

Blog Introduction: If you've ever wondered how celebrities and politicians manage to keep their credit scores so high, despite all of the financial scrutinies they're under, the answer is simple - credit privacy numbers. Also known as tax identification numbers, credit privacy numbers are nine-digit codes that can be used in lieu of a social security number when applying for credit. And because they're not linked to a person's name or address, they offer an extra layer of protection against identity theft.

How Does a Credit Privacy Number Work?

A credit privacy number is issued by the IRS and can be used by anyone who wants to keep their personal information private. When applying for credit, you simply provide the lender with your credit privacy number instead of your social security number. The lender will then use that number to pull your credit report.

Because a credit privacy number isn't linked to your name or address, it makes it much more difficult for identity thieves to steal your personal information. Even if someone manages to get their hands on your credit report, they won't be able to open new accounts in your name because they won't have your social security number.

Are There Any Drawbacks to Using a Credit Privacy Number?

The only major drawback to using a creditPrivacy number is that it can make it more difficult to get approved for new lines of credit. This is because lenders often require additional information from applicants who don't have a social security number.

For example, a lender may ask for a copy of your passport or birth certificate if you're applying for a mortgage or auto loan. They may also ask for additional documentation to prove your income and employment history. So, if you're planning on applying for any type of loan in the near future, make sure you have all of the necessary documentation on hand before submitted your application.

Conclusion:

A credit privacy number is a nine-digit code that can be used in lieu of a social security number when applying for credit. Because a CPN isn't linked to your name or address, it makes it much more difficult for identity thieves to steal your personal information. The only major drawback to using a CPN is that it can make it more difficult to get approved for new lines of credit.