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CPN / SCN Questions and Answers

There is a lot of different information everywhere, we try to give you the residency to all the questions you might have about CPN Number (Credit Privacy Number) / SCN Number (Secondary Credit Number) and our amazing programs.

Closed Accounts

Most of the time, when we talk about credit, we are talking primarily about the impact of open accounts.
But closed accounts are important too!
So what does a closed account mean for your credit?
In this article, we shed some light on the less commonly addressed topic of closed accounts.

Most of the time, when we talk about credit, we are talking primarily about the impact of open accounts. But are we underestimating the importance of closed accounts? Let’s shed some light on the less commonly addressed question of how closed accounts can affect your credit.

What Is a Closed Account on a Credit Report?

A closed account on your credit report is simply any credit tradeline that has been closed, whether it was terminated by the customer or the creditor. 

There are several different reasons why an account may be closed.

If you don’t use your account for several months, it could get shut down for inactivity.

If you don’t use a credit card for several months, for example, you could get your credit card closed for inactivity. In this case, your credit report might say “account closed by credit grantor” for that account since the lender was the party who terminated the account.

Other reasons a credit card may be closed by the creditor include:

The credit card issuer is no longer offering that type of credit card or is replacing it with a different card

The credit card issuer determined that there was fraudulent activity on the account

The card was stolen or lost

Consumers may also want to close their own credit accounts from time to time, in which case the account might be notated as “account closed by consumer.” As an example, if one of your credit cards increases its annual fee or you no longer feel that the fee is worth it, you might decide to close that account.

What Do Closed Accounts Mean on Your Credit Report?

Now that you know what a closed account is and why an account may be closed, you may be wondering what a closed account on your credit report means for your credit. 

The main impact of closing an account on your credit is the effect on your utilization ratio. By closing an account, you are reducing your total available credit limit, which could increase your overall utilization ratio if you have balances remaining on your other accounts.

Therefore, if you have balances on any of your other cards, you probably don’t want to close an account that is helping to keep your overall utilization down, as well as helping your ratio of low-utilization to high-utilization accounts.

On the other hand, if you pay down all your other credit cards to 0% utilization, you can close an account without impacting your credit utilization.

Try using our tradeline calculator to calculate your individual and overall credit utilization ratios and see how closing one of your accounts could affect your utilization.

Closed Accounts and Credit Age

Many people believe that once an account is closed, it will no longer count toward your credit age. However, according to an article by credit expert John Ulzheimer in The Simple Dollar, this is a myth.

“Credit scoring models like FICO and VantageScore do indeed consider the age of your oldest account and the average age of your accounts when calculating your credit scores. However, closing an account does not remove its history — including its age — from your credit reports.

Not only will the history of a closed account remain on your credit reports, but credit scoring models will continue to consider the age of the account as well. And, even better, a closed account continues to age. So, if you closed a five-year-old credit card today… in 12 months it’s going to be a six-year-old credit card.”

Are Closed Accounts on Your Credit Report Bad?

Closed accounts on your credit report are not inherently a bad thing. In fact, they can often be a good thing, as we will elaborate on below. 

However, delinquent closed accounts can definitely have a negative impact on one’s credit.

For example, if you had a credit card closed due to delinquency, meaning the creditor closed the account because you had stopped paying it, the account likely still has a balance owed.

Having a closed credit account with a balance on your credit report could really hurt your credit. According to some sources, closing a credit account removes its credit limit, so a credit card account closed with a balance would be considered maxed out or over-limit.

Credit utilization is a major influence on your credit score, so maxing out your utilization by having a credit card account closed with a balance could result in a big dip in your score.

However, other sources say that a closed account with a balance will be treated as an open account until the balance is paid off, at which point you can expect some damage to your score, especially if you have balances on your other credit cards.

The specific way that closed accounts are treated may depend on which credit score algorithm is used to calculate your score as well as other variables in your credit profile.

Should I Pay Off Closed Accounts on My Credit Report?

If your account was closed with a balance but remains in good standing, maintain its good standing by continuing to make payments until the account was paid off.

If your account was closed due to delinquency, the first thing to do is call your credit card issuer to check the status of the account. If the debt hasn’t been sold to a collections agency yet, you’ll want to start paying off the account immediately to prevent it from going to collections. You could end up with bad credit if you have a collection account on your file.

If the account is already in collections, however, whether you should pay it off is an entirely different question that depends on your individual situation. 

Open vs. Closed Accounts on Credit Report

In the tradeline industry, we often get questions about whether closed accounts have an impact on one’s credit and, if so, what value they hold relative to open accounts. 

This is an important question, because generally when you buy tradelines you are an active authorized user for one reporting cycle, and after you are removed from the account, it will begin to show as a closed account on your credit report.

Therefore, it is useful to know what impact the tradeline might have after it converts to a closed tradeline.

From what we have seen, closed accounts often can still be a very powerful influence on one’s credit score. 

It is possible to have a good credit score without having any open accounts. Remember, the age of a closed account still factors into your credit, and accounts continue to age even after they have been closed. Age and payment history go hand-in-hand and together make up 50% of a FICO score, and since closed accounts can still contribute to these factors, this implies that closed accounts can still have a strong effect on credit. 

However, closed accounts may have a diminishing impact over time, since credit scores tend to prioritize recent events.  

Can You Have Good Credit With Only Closed Accounts?

It is possible to have a good credit score while only having closed accounts in one’s credit report. We have seen examples of people with credit scores in the 700’s who only had closed accounts in their credit file.

Can I Have Closed Accounts Removed From My Credit Report?

If you have closed accounts on your credit report that are not delinquent or hurting your credit, then there is no need to remove them. They may actually be helping your credit, even though they are closed.

Accounts that were closed in good standing should automatically fall off your credit report after 10 years, while delinquent closed accounts will fall off your credit report after 7 years. 

How to Get Rid of Closed Accounts on Credit Report

If a closed account on your credit report is reporting inaccurately, then you can dispute it and have the credit bureaus update the account with the correct information or remove it.

Contact each credit bureau or check their websites for instructions on how to dispute closed accounts on your credit report.

If a Credit Card Is Closed, Can It Be Reopened?

In some cases, consumers may be able to reopen closed credit cards. If your account was closed due to fraud or delinquency, banks typically do not allow these accounts to be reopened.

If it was closed voluntarily on your part or due to inactivity, however, you might have a chance to reopen it if you don’t wait too long. 

Only some banks will allow this, and those that do have varying time limits as to when you can reopen an account, so check with your credit card issuer.

If you’re within the time window and your account is eligible to reopen, here’s how to reopen a closed credit card account:

Call the phone number provided on the back of your credit card (or if you don’t have the physical card anymore, look up the phone number for the customer service department for that card).

Be ready to provide your personal information and answer security questions.

Explain why you closed the account and why you are requesting to reopen it.

Some issuers may require a hard inquiry before they can approve your request, which could cause a small, temporary drop in your credit score.

If your bank doesn’t allow you to reopen the card, the next best solution might be to re-apply for the same card or apply for a new card altogether. 

Take-Home Points About Closed Accounts

Accounts may be closed voluntarily by the consumer or closed by the creditor due to inactivity, fraudulent activity, or delinquency.

Closed accounts are not necessarily bad and can even help your credit.

Closing an account could affect your credit utilization.

Closed accounts still contribute to your credit age and they continue to age even after they are closed.

Closed accounts can still have a powerful impact on credit scores.

Continue paying off accounts that were closed with balances to prevent them from going to collections.

You can dispute closed accounts that are not reporting correctly.

You may be able to reopen a closed credit card account depending on the circumstances.

Answers to all your questions on CPN / SCN Numbers

CPN Number / SCN Number IS 100% LEGAL BUT UNETHICAL!

The government actually endorses consumers to have a CPN Number (Credit Privacy Number) / SCN Number (Secondary Credit Number) to protect their social security number from being compromised by identity theft.

More Information About 100% Legal CPN Number / SCN Number

How does a CPN Number / SCN Number Work ?

A CPN Number and SCN Number can be utilized in place of one's Social Security Number (SSN) when applying for credit. It is a person's legal right to keep his or her Social Security Number (SSN) private and employ a separate number for credit related reasons. After you receive the number you will need to TRI-Merge your personal information to the three credit bureaus. then you will have a clean new credit file this profile will have a 0 score at the beginning because like Social Security Number (SSN) you need to build credit step by step.

To Build a Credit Score You Have Two Options:

1.The slow and standard way when beginning to build your credit, start off small and look for options available for those with little to no credit: apply for no credit check Secured credit cards, Student credit cards & Retail credit cards

2.The faster way is getting Tradelines (authorized user accounts) HOW DO I DO THAT?? You can ask to become an authorized user of a close family member or friend's credit card...This is a great option to consider as long as the balance of the card is paid below 10% of the cards limit. The history of the card is reported to the credit bureaus, so if you and the card-owner use it responsibly, it should help the both of you. OR if you don't have someone to help you... YOU CAN ASK US AND JOIN OUR TRADELINE PROGRAM. OUR TRADELINE PROGRAM IS OWNED BY US AND MANAGED BY US START TO FINISH! NOBODY ELSE IN THIS INDUSTRY CAN MAKE THIS CLAIM! OUR TRADELINES BOAST 720+ SCORES AND 2-12 YEARS HISTORY. OUR TRADELINES IN HOUSE ARE UNMATCHED ANYWHERE ELSE THROUGHOUT THE INDUSTRY!

When it comes to the FICO SCORE, any new credit file which is automatically created by the bureaus computer will be blank and you will need to re-establish credit by applying for a credit card or other credit lines under the law.

More Information About a CPN Number & SCN Number

A CPN Number or SCN Number is separate from your Social Security Number (SSN). It helps to protect one's Social Security Number (SSN) from various internet threats such as identity theft. These numbers can be used in place of the SSocial Security Number (SSN) when an individual applies for credit. You can only have a CPN/SCN number when you have a SSN as your primary form of credit profile use.

Creditors do not get any benefits when their clients get a new credit file. Based on the 1974 Privacy Act, a person is not obligated to give his or her Social Security Number (SSN) to any private entities. When it comes to the legality, CPN Number (Credit Privacy Number) / SCN Number (Secondary Credit Number) are completely legal. However, it should be kept in mind that they can be utilized for credit purposes only and not for deceitful intentions. YOU ARE RESPONSIBLE FOR ANY AND ALL DEBT YOU CREATE UNDER THIS NUMBER.

Using a CPN Number (Credit Privacy Number) / SCN Number (Secondary Credit Number) makes it easier to segregate finances in the event of identity theft. Without access to a Social Security Number (SSN) the thief is somewhat limited in the amount of difficulties they are creating for the rightful owner of the number.

Getting a CPN Number (Credit Privacy Number) / SCN Number (Secondary Credit Number) does not release a person from his or her previous debts. In fact the individual remains liable for all debts incurred on credit accounts referencing a SSN OR CPN OR SCN. Obtaining this number will not replace old bad credit. That is what makes it different from any credit repair or restoration programs or scams.

You can use a CPN Number / SCN Number for anything that usually requires credit reporting purposes. You cannot use it for anything that is Government related.

You can use a CPN NUMBER TO GET: Credit Cards, Auto loans, Cable, Utilities, Apartments, Office and open Bank accounts.

FBI Website:

“Credit Privacy Numbers (CPNs) are nine-digit file numbers that follow the same algorithm as Social Security Account Numbers (SSANs). Currently, federal law allows individuals to legally use CPNs for financial reporting and protects those individuals who do not wish to disclose their SSAN. Individuals who acquire CPNs are completely responsible for any debt they incur using this number"

Our CPN Number / SCN Number programs Will Change Your Life!

 

 

HERE IS HOW WE DEBUNK THE MYTH OF "is it legal?"

“I would not use a CPN especially if you have questionable credit,” said John C. Heath, a credit expert and consumer attorney for Lexington Law. “It may be seen as an attempt to deceive a creditor about your creditworthiness (even if that is not your intention)."

Correct answer:  What Lexington Law is not telling you is that it is completely legal to use a CPN to conduct your personal financial business…obtaining basic consumer type credit. If you do not pay these bills that’s when you can get yourself in a heap of trouble if they prove that your intention was to purposely elude creditors and evade paying your committed debts.

"CPN sellers also often tell consumers they can apply for and receive credit from lenders and that their credit transactions will be reported to the three major credit reporting agencies — Experian, TransUnion and Equifax."

Correct answer:   When we register the CPN number and your personal information with all three bureaus this is EXACTLY what occurs…No myth!

“Equifax asks for Social Security numbers and not alternatives,” said Nancy Bistritz, director of public relations and communications for the credit reporting agency.

TransUnion sent us a similar statement….

“TransUnion uses Social Security Numbers to identify consumer data for credit reports,” said David Blumberg, public relations director for TransUnion. “This approach is the standard for our industry because it supports the most accurate matching.”

Correct answer:   The five agencies that require you to give them your SSN do not include the private sector credit bureaus. This is the premise as to why the number is completely 100% legal for use to conduct your personal financial business without exposing your sensitive information to these bureaus that are not required on ALL levels to access it. The Equifax breach is a prime example why EVERYBODY should possess a CPN number!

"If these numbers are such scams then why are consumers in danger of prosecution when countless companies are clearly marketing and selling them without recourse. Seems that if the CPN is in fact illegal then some accountability lies with the agencies that issue them......additionally, I've known about the CPN for years now and have seen several individuals "start over" with them and how are lines of credit being offered and approved if reporting agencies don't except or recognize them?"

Correct answer:  Because they are legal to have and use as long as you pay all of your bills responsibly. They just try to discourage the purchasing and use of them through manipulative ads and vague interpretation of the law betting that most consumers are dummies!

"Why does the Social Security Administration offer them if you can't use it for anything legitimate? Doesn't make sense."

Correct answer: They are issued by the SSA to all immigrants when they come over to work. They tell you its not for work and its not a social security number. Then what is it?  It is a CPN used for personal financial business!

Companies offering credit privacy numbers boast two big selling points. Nonetheless, despite these supposed pros of getting a CPN, Credit Privacy Numbers end up still being a hindrance when it comes to getting a business loan.

Correct answer:   You can only use it to obtain credit and financing personally and then use the personal funds to accellerate your business.

  1. It protects your Social Security number.

People who are worried about identity theft and dislike the idea of sharing their Social Security number with anyone might get a CPN thinking they can use it as identification instead of their SSN.

In reality, however, if a lender asks for your SSN, they aren’t going to be satisfied with your credit privacy number. Think about it: You’re asking a bank to lend you tens or hundreds of thousands of dollars, trusting that you will pay it back, but you don’t trust them enough to share your SSN?

Correct answer:   This is a weak response…A CPN does protect your SSN! It is a firewall!

  1. It can help you clean up your credit history.

CPNs are often promoted as part of a plan to improve your credit. When you do an online search for “credit privacy number,” lots of credit repair programs pop up. By using the CPN, these companies claim, you can apply for credit cards, lines of credit, or loans, and the companies involved will never find out that you have bad credit.

Correct answer:  This is true in most cases…and these companies are not priveledged enough to have entitlement to your SSN credit.

However, it’s pretty obvious rather than improving your credit history, the credit privacy number is intended to hide it. And common sense will tell you that as long as the CPN is connected with you—your name, address, and other identifying information—it’s a simple matter for credit sources to uncover your credit score, no matter which ID number you use.

If anything, using a credit privacy number will make them more suspicious of your creditworthiness. And though it’s a difficult reality to face, that’s why you should focus on fixing your score instead.

Correct response:   A CPN is the first step to fixing your credit past. It allows you to stop using your SSN for credit and allows you to continue forward. Only then can you stop and fix your SSN credit. Down the road you should bring both of the files together to report together.

"NEW LAW STOPS CREDIT PROFILE NUMBERS- Superior Tradelines"

Correct answer:   There is no new law and they are not in the CPN business and do not report tradelines to CPNs. That is why they are full of reckless irresponsible banter. They have no knowledge of them and they know by talking about CPNs it will increase their Google rankings.

"What Is A CPN? Fraud Just Waiting to Happen- Wallethub"

Correct answer:   Only if you take the money that you obtained by using the CPN number and don’t repay it. They will say that you intentionally misled creditors and that is fraud! They have no knowledge of them and they know by talking about CPNs it will increase their Google rankings.

"Your One-Way Ticket to Jail, the Credit Privacy Number- Creditsesame"

Correct answer:   Only if you take the money that you obtained by using the CPN number and don’t repay it. They will say that you intentionally misled creditors and that is fraud! They have no knowledge of them and they know by talking about CPNs it will increase their Google rankings.

"What Is a Credit Privacy Number? Nerdwallet"

A credit privacy number, or CPN, is a nine-digit ID that can be used in lieu of a Social Security number for credit reporting and other financial purposes, like applying for a loan. Also called a credit profile number, a CPN is primarily used for tracking credit history or applying for loans. You’ve probably heard of CPNs in the context of credit repair: A company will promise to issue you a CPN that will make it easier to qualify for new credit or get rid of bad debts. But be careful: Sometimes, those companies are selling a service that’s useless or even outright illegal.

So why use a CPN instead of an SSN, anyway?

Like an SSN, each person can only have one CPN. It’s used as a unique identifier for your financial transactions and lets lenders and credit reporting agencies keep an eye on your borrowing history. However, a CPN can help you keep your finances safe and hidden from the public eye. For that reason, it’s popular among elected officials, celebrities and people in witness protection programs. As the name implies, it’s mostly used by people who need a little extra privacy.

A CPN isn’t always a substitute for an SSN, though: You can’t use it for documents submitted to the IRS or an employer, registering a vehicle or applying for a government loan, for instance. If you have a CPN, it’s on you to know when you can and can’t use it.