Do CPNs actually help with bad credit?

 

CPNs, or Credit Profile Numbers, are being touted as an easy way to fix your bad credit, but are they any good? Several reports of CPNs being very helpful with credit scores, but many others suggest that they’re just another way to take your money and do nothing in return. So how can you tell if they’re worth your while? Read on to learn more about CPNs and whether they may be right for you.

Why do people get them?

You might want to consider a credit profile number if you’re starting a new business. Many financial institutions won’t lend money without one, and some small businesses even use it in place of an address when they need to hire contractors or purchase new equipment. Having a credit profile number can also be very helpful if you’re trying to establish your credit.

What are CPNs, and how do they work?

Authorized user tradelines, also known as Credit Card Payment Agreements, are a way for people with a healthy credit score to benefit from your thin (or nonexistent) credit history. An authorized user can use your credit card and make charges without legally binding them to those payments. The bank considers these authorized users as having an established history of payment on your account.

In other words, by adding another person to your account as an authorized user, you can boost your credit score without negatively affecting theirs. If you’re looking for ways to improve your FICO score, setting up an authorized user on a credit card is one of your best options.

What happens if you can’t make payments on your card with a CPN?

If you’re using a card with a CPN, you should understand what will happen if you don’t make payments on that card. You need to know how credit reporting agencies treat authorized user tradelines because those companies are ultimately who determine how much of an impact your card’s payment history will have on your score.
 Remember that making a payment on your card doesn’t affect how other accounts are reported. So, if you use a card with a CPN to make a payment but don’t make payments on that authorized user tradeline, it won’t impact your credit score.

Does it matter which issuer I use for my CPN credit card?

There are many issuers of these cards, so you can shop around and see which one works best for your needs. Depending on what kind of flexibility and rewards program you’re looking for, there are different cards.

Conclusion
You might be surprised to learn that a credit profile number (CPN) won’t help you rebuild your credit; it will likely do just the opposite. At the same time, it may seem like a good idea; getting a CPN revokes any protection you have under current law and gives more power to data brokers that are already skirting around rules about how and when they can share your personal information.