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Can You Get Credit Without a SSN?
Posted on Feb 12, 2007 by Tom Fragala
Can you get a credit card without a social security number? Can a credit file/report exist for a person without an SSN?
Noodle on that for a second.
The answer is Yes. According to Evan Hendicks, in his book Credit Scores and Credit Reports, "the CRA can return a credit report to the credit grantor without an SSN."
There are even known cases where an unscrupulous worker at a credit grantor, like a car dealer, will fiddle around trying to extend credit to someone who isn't credit worthy. They will purposely try entering SSN's that are similar but different until they hit one that passes muster. Then credit is granted and they get the sale. And later, when it is found out, everyone involved can just say "Well, it was one digit off, so it was a typing error. That is not fraud." In that bizarre (but, granted, unlikely) scenario, there arguably is not really an identity theft per se, but just the identity fraud part. And the criminal is not the person that ended up with the goods, but the someone at the credit grantor.
In case you think this is all something I cooked up, the Wall Street Journal reports today that Bank of America now has a major campaign to issue credit cards to people without an SSN. They are targeting non-citizens (or, if you prefer, illegal immigrants) since they are focusing this service in Southern California.
Many of the Spanish-speaking account holders who come to teller Luz Quintanilla's window at Bank of America's East Hollywood branch, already have a Social Security number and regular credit card with the bank. But she suggests in Spanish that "maybe you have family or friends who don't have a Social Security number, but wish to build their credit."
There is one issue that I don't think anyone is considering. Not using SSN's will make the possibility of errors and fraud even that much higher (as if it is not bad enough!). Especially if you have a common name. So it is somewhat misleading to promise an illegal immigrant they can build their credit, when they may not be at all. Although, in the UK, the entire consumer credit system is based on just name and address, too. They do not have SSN's or a substitute there.
Filed under: Credit
Tags: credit, credit+report, identitytheft, idtheft
Comments
Hardas K Kripalani on Feb 14, 2007
I think use of SSN’s by CRA’s should be banned altogether. Use of SSN’s should be allowed and required only for opening deposit accounts with banks. CRA’s should find some other way of identifying the person for whom they are rendering Credit Report. Why should CRA’s be allowed to exploit the SSN’s system that was established by SSA/Govt. at taxpayers’ expense, and then claim that they own the information they have collected under that number?
Quote:
There is one issue that I don't think anyone is considering. Not using SSN's will make the possibility of errors and fraud even that much higher (as if it is not bad enough!).
Unquote:
CRA’s don’t care anyway about identity theft when they render reports (whether erroneous or accurate), to credit grantors. They don’t bother to match the address provided to credit grantor with the one they have on record and they don’t seem to bother about alerting the credit grantor if there is a mismatch.
Identity theft and its consequences should be made responsibility of the Credit Grantors alone, and Credit Grantors must be made to suffer the consequences both to themselves and ID theft victim, if they neglect to verify the identity of the person to whom they are granting credit. This includes Credit Grantors who are Credit Card issuers. Credit Card issuers may link Credit Cards with Deposit Accounts, if any, which they have, BUT NOT WITH THE SSN of the deposit account. There should be a law, which makes it necessary for Credit Grantor’s beware!
In another thread on ”Debunking the myths…”, you mentioned that putting “Credit Freeze….” was useless. I agreed. However, there was much hue and cry from instant credit grantors on allowing “credit freeze”, claiming that it would be difficult for people to open utility and cell phone accounts or rent an apartment. When I opened my utility account there was a deposit for first couple of years and after a couple of years when the utility providers gained sufficient experience with payment habit, they returned my deposit as it was too much of chore to keep deposit accounts. Why should the same not apply to cell phone service providers? These amounts are small after all. As to apartment rentals, landlords are already collecting 1 to 2 months rent as deposit. Why do they need any further credit reports?
CREDIT GRANTORS BEWARE! CRA’s HANDS OFF OF MY SSN. That is what I would say.
Vijai Kalyan on Jul 31, 2009
"They are targeting non-citizens (or, if you prefer, illegal immigrants)"
So, everyone who is a non-citizen is an illegal immigrant is it?
Andrew on Oct 15, 2009
So an immigrant has to be here illegally? There are a lot of Asian immigrants in Southern California as well, some legal, some illegal. I have seen firsthand the hoops you have to jump here to come here legally, even to marry a citizen. And you can't get an SSN just for credit purposes.
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