When you create an online account for something like a shopping site, lender, or credit card, the company will ask you for your Social Security number. This may feel like an invasion of privacy and seem unnecessary. But it’s not without good reason. Using your Social Security number as a password is one of the safest ways to keep your personal information safe. Your SSN cannot be hacked as easily as other login details such as a username or email address, because it is a unique nine digit number that works as a strong password. Here’s what you need to know about using your Social Security number to buy things online.

How to Use SSN To Buy Things?

1. Check Your Credit Score

A credit score is an indicator of how likely you are to repay a loan. By using your SSN to check your credit score, you have an accurate measurement of how likely you are to repay a loan. If you have a high credit score, you’re more likely to be offered lower interest rates on loans such as mortgages and personal loans. It’s important to check your credit score before applying for any type of credit. This way, you’ll know exactly where you stand, and be able to take any action necessary to improve your score before applying. This can be as simple as checking your credit report and removing any incorrect information.

2. Open A Bank Account

To open a new bank account, many financial institutions require you to present a government-issued photo ID, such as your driver’s license. Many also require you to present a Social Security card, so they can verify your ID and credit score. If you have a high credit score, you may be given a higher line of credit on your new account. Some banks may even offer you a higher savings interest rate if you have a high credit score. If you have a low credit score, you may be offered a lower line of credit or none at all. You may also have to pay a higher interest rate on your savings account. Note that if you’re opening a new bank account with bad credit, you may need to use your SSN to open the account even if you don’t want to. Bad credit doesn’t necessarily mean you’re financially unstable and unable to open an account. It simply means that your credit score wasn’t as high as the bank would like it to be.

3. Apply For A Mortgage

If you are planning to buy a home in the near future, you may need to provide your SSN to the mortgage lender. Again, this is because they use it to help verify your identity and obtain your credit score. If you have a high credit score, you are more likely to be approved for a mortgage rate that is favorable to you. This is because the bank will assume there is less chance that you will not be able to repay the loan. If you have a low credit score, you may not be approved for a mortgage loan at all. If you are, you may be offered a higher interest rate. If you have bad credit, you may need to use your SSN to apply for a mortgage loan even if you don’t want to.

4. Rent An Apartment

If you want to rent an apartment, you may need to provide your SSN. Some landlords use the credit score listed on your SSN to determine the amount of rent you should pay. If your credit score is high, you may pay less rent on a monthly basis. If your credit score is low, you may be charged more rent. If you have a low credit score, you may not be approved for a rental lease at all. If you are, you may be required to pay a larger deposit or higher rent. If you have bad credit, you may need to use your SSN to apply for a rental lease even if you don’t want to.

5. Secure A Credit Card

Credit card companies require you to provide your SSN to open a new credit card account. This is because they use it to help verify your identity and obtain your credit score. If your credit score is high, you are more likely to be approved for a low-interest credit card. If your credit score is low, you may be offered a higher-interest credit card. If you have bad credit, you may not be approved for a credit card at all. If you are, you may be charged a higher interest rate on the card. If you have good credit, you may be offered a credit card with a lower interest rate and more benefits. Credit card companies are more likely to approve you for a credit card when you use your SS

Why do companies ask for your SSN?

• Companies ask for your SSN for a few reasons. First, it’s a way to confirm your identity. 
• If the company has ever issued a product like a credit card to your SSN, then they can cross-reference that number with your online account to ensure it matches up. 
• If it does, then you’re likely who you say you are. Companies also use your SSN as a password to protect your account from hackers.
•  If someone tries to log into your account from an unfamiliar computer, they’ll notice it doesn’t match their system.

How to securely use your SSN to buy things online? 

1. When you create an online account for something like a shopping site, lender, or credit card, the company will ask you for your Social Security number. This may feel like an invasion of privacy and seem unnecessary. But it’s not without good reason. Using your Social Security number as a password is one of the safest ways to keep your personal information safe. Your SSN cannot be hacked as easily as other login details such as a username or email address. Here’s what you need to know about using your Social Security number to buy things online.
2. When you apply for a credit card, bank account, or loan, the company will ask for your SSN so they can verify that the person applying is indeed you and that all of their information is current and accurate. In order to apply for these services online, they need access to this information in order to verify who you are and that the information on file with them is correct. In fact, most financial institutions won’t let you open an account without using your SSN as a password because it increases security and reduces fraud. 
3. If someone has access to your username or email address but not your SSN, they can still apply for an account using those details but it will be flagged in their system when someone tries to use it in connection with verifying identity (for example when depositing money into the account). If someone was able to get around this verification process by being able to use multiple usernames or email addresses, they would still not be able to withdraw money or make any other changes to the account because they would not have your SSN – which is the true password.
4. Using your SSN as a password for your online accounts is a safe way to protect yourself. Your SSN cannot be hacked as easily as other login details such as a username or email address. Your Social Security number is unique and never changes, so it’s much less likely that someone will guess your username and password than if you used something like “password” or “12345678” or even something like your birthday. 

What to watch out for when using your SSN to buy things online? 

• If you choose to use your SSN as a password, there are a few things to watch out for. Avoid using your SSN as a universal password: Using your SSN as a universal password is risky, as it can be hacked more easily. Instead, create a unique password for every account.
•  Avoid using your SSN when prompted for an email address: Your email address is less secure than a password. If you use your SSN as an email address, you’re putting your information at risk. 
• Be wary of public WiFi: Public WiFi is often unsecured, meaning hackers could be monitoring the network. If you need to provide your SSN on an unsecured network, make sure to log out of your account when you’re done shopping.

Bottom Line

Your SSN is critical to your financial future. The SSN is linked to your credit history, so keeping it clean is essential if you want to get a mortgage, car loan, or even a utility bill. Your SSN is also required for any type of employment, including freelance work. Every time you apply for a job, your employer asks for your SSN. If you apply for government benefits such as Medicare, Medicaid, or food stamps, you must provide your SSN. Anyone with access to your SSN can open bank accounts, get tax refunds, and apply for credit under your name. Using your SSN as a password for your online accounts is a safe way to protect yourself.