In a previous article, I mentioned to you that the best way to clean up your credit is with the formation of a LLC or Limited Liability Company and obtaining a CPN number as part of it. In this follow up to this story, I will share some new info that I learned about.
The Real Story about CPN or Credit Profile Numbers
After spending much time researching the legalities of CPNs I have discovered that it is legal to have a second number. A CPN or Credit Privacy Number is a 9 digit number that credit can be built on. How you intend to use it determines its legal vs. illegal actions. It is used to give very important people in the political, government and corporate world total protection of their real personal information by keeping it in total privacy. What can border on illegal is when you intend to cheat or defraud any creditor. Defaulting on a credit card of any creditor or opening a line of credit that you opened with your CPN especially with already damaged personal credit is a fatal move and is 100% illegal
CPN's and Business Credit Profile
Now that we cleared that up, a CPN cannot be used to give you new personal credit but, you can still have a new credit profile in the form of Business Credit. As mentioned before, all you need to do is to form a Limited Liability Company and the very minute you establish the company, get it registered with the 3 Business Credit bureaus and with Dun and Bradstreet in the form of a DUNS number.If you use the CPN number legally, you will get protection by keeping your personal information private but, you will also get the same protection against personal liability through having an LLC. While there are many other types of companies like, LLP, S type and others, I prefer the LLC type of business. Please keep in mind one thing, your personal credit will be a factor in some cases of obtaining business credit and in most cases, 80 to 90 percent. The only way around it is to search the Internet for companies that will give you a program that will help you build business credit without using your personal credit. Some of these companies that offer these types of programs, may be legitimate or illegitimate. Do your leg work online and research thoroughly this option before you leap into it. Do a BBB check on the company. Check to see if they have a valid phone number and 24/7 Customer Support complete with live operators.
CPN Numbers are Free to Obtain
Many companies are selling CPNs at thousands of dollars, some for hundreds. Getting a CPN is free and you can get more information on it by going to several different sites but one in particular at www.cpnheadquarters.com