History

• The Federal Privacy Act of 1974 has this clause: "It shall be unlawful for any Federal, State or local government agency to deny to any individual any right, benefit, or privilege provided by law because of such individual's refusal to disclose his social security account number." In effect, this means that all governmental agencies must honor people's rights to use credit profile numbers since they do not need to provide a Social Security number.
  
  

Function

• A credit profile number works in exactly the same way a Social Security number does. People can use the number to get credit cards, car loans, mortgages, business and personal loans and to purchase real estate. In effect, these people have two credit accounts: one under the Social Security number and one under the credit profile number. The two profiles are separate and distinct, but the borrower is fully responsible for all accounts on each profile. Any late payments, judgments, missed payments, bankruptcies and charge-offs negatively affect the borrower's ability to secure future credit.
  
  

Benefits

• Borrowers who seek credit profile numbers to avoid poor reports under their Social Security numbers can often get a second chance to get back on their feet. Credit profile numbers must be secured with the help of an attorney specializing in the litigation of credit profile numbers. Celebrities often use credit profile numbers to protect their identities against stalkers, obsessive fans and the paparazzi. While a credit profile number can offer a new chance at credit, it can lead to problems if the new number is overused.
  
  

Size

• New credit profile numbers start out as blank profiles. In the same way that credit must be built on a Social Security number, the same is true for a credit profile number. Individuals with new credit profile numbers often need to start with only one trade line (such as a low-limit credit card). After making responsible credit decisions with the new credit profile number, an individual may be able to move on to larger accounts (such as car loans and mortgages).
  
  

Warning

• Credit profile numbers are not for everyone. With poor judgment and decision-making, an individual can end up with double the amount of debt with which he initially started. Again, a credit profile number is just as important as a Social Security number in terms of creditworthiness, and all credit profile number trade lines must be monitored. Last, getting a credit profile number through illegal means is a surefire way to damage credit profiles and possibly face criminal charges.