Due to the widespread tragedy of identity theft and fraud, credit freezing has become a common practice. Scammers gain access to other individuals’ personal information and use it to open up fraudulent accounts. A credit freeze can help you control access to your credit information, thus limiting any chances of fraudulence.
The idea of such security must definitely sound enticing, right?
Well, we’ve got all the ins and outs of credit freezing, from what it means, to how to freeze your credit. So, read on for in-depth information on freezing your credit.
What you need to know about credit freeze
A credit freeze prevents any unauthorized access to your credit file data. This secures your credit information against any scam attempts. Limiting access to only you and companies you have an existing credit relationship with such as debt programs. A debt relief program provides you with relief from unsecured debt.
With a credit freeze in place, not you or anyone else can open a new credit account. This means having to temporarily lift the credit freeze in order to open the new account. You can, however still apply for a job, rent an apartment, and purchase insurance without lifting the freeze.
There are various advantages to freezing your credit. We’ve listed some below.
- It is free for all consumers
- It protects you from identity theft, making it difficult for new accounts to be opened in your name fraudulently.
- It is simple and fast, you can freeze your credit online. The bureau websites are quick and efficient.
- It prevents the unauthorized distribution of your credit information from the credit bureau.
Below are some disadvantages you need to bare in mind before attempting a credit freeze.
- Freezing your credit can lead to a false sense of security. After all, credit freezing does not offer full protection against credit fraud.
- A credit freeze does not affect any of your current accounts, however information can still be stolen on an existing account. So, you must check your statements carefully.
How to freeze your credit
A credit freeze acts as an extra layer of security to your credit data. One of the best parts is it’s completely free and it lasts as long as you want it to. Furthermore, having a credit freeze in place will not affect your credit score. There are three major credit bureaus you can contact if you wish to freeze your credit.
- Equifax
- Experian
- Trans Union
To freeze your credit you must provide the bereaus with the following information:
- Your name
- Address
- Date of birth
- Social security number
- Identification documents such as ID card, passport, or drivers license
When placing a credit freeze over the phone, a few security questions are asked to verify your identity. The quickest way to freeze your credit, however, is online or over the phone, though it can also be done via email.
Experian and TransUnion bureaus will require a unique pin to freeze your credit. It is mandatory to perform the process with all three bureaus to lock down all your credit. Your credit freeze should be activated within 24 hours of the initial request.
Fraudulent Alerts
These work hand-in-hand with credit freezes as they also aim to limit identity theft. Fraudulent alerts can be placed by anyone suspecting credit card fraud. Fraudulent alerts make it harder for scammers to open up new credit accounts in your name. It lasts one year and can be renewed thereafter.
To have a fraudulent alert placed you will need to contact one of the three bureaus. That one bureau you contact will notify the other two of your request.
We hope this covers how to freeze your credit. By contacting the right bureaus you can perform a successful credit freeze. Take those extra steps to protect your information, its complete free.