What Does 'Credit Freeze' Mean?
Hearing the words “credit freeze” can sometimes create an uneasiness. What does it mean? Does it affect my credit score? Simply put, a credit freeze is a measure put in place by consumers to help prevent new accounts from being opened fraudulently in their name.
Overview
A credit freeze blocks creditors and fraudsters access to credit reports. This helps protect you from having an identity thief open an account in your name.
Your credit score is not affected by placing a credit freeze.
Contact each of the three credit bureaus individually to freeze and unfreeze your credit.
It’s free to place a credit freeze for you and your children.
How Does a Credit Freeze Work?
A credit freeze can be used to help protect individuals against credit fraud. When one applies for credit, the lender or creditor needs access to your personal information. Keep in mind though, a credit freeze does not protect you from everything. Unfortunately, the opportunity to have your identity stolen is still out there. If someone has managed to gain access to your social security number and other personal information, having a freeze in place only prevents a person who has stolen your identity to commit credit fraud against you.
Can You Still Access Your Frozen Credit Report?
A credit freeze does limit access to some people, but not all. You still have access to all of your credit reports. Your current creditors and debt collectors, marketers, and possibly government or child support agencies are still allowed access to your records. You also can grant permission to an employer and/or potential employer to view a less detailed version of your credit report.
How Do You Freeze Your Credit?
Freezing your credit is actually very simple, can be done in just a few clicks or a quick phone call, and has no impact on your credit score. It is also free to place a freeze. You must reach out to each of the three major credit bureaus to thoroughly freeze your credit. Most times you will be asked to confirm your identity by providing your social security number, birthdate, and other personal information.
TransUnion: Go online https://www.transunion.com/credit-freeze or call (888) 909-8872.
Experian: Go online https://www.experian.com/freeze/center.html or call (888) 397‑3742.
Equifax: Go online https://www.equifax.com/personal/credit-report-services/ or call (888) 548-7878.
How Do You Unfreeze Your Credit?
Is your credit frozen, but you’re ready to purchase a new vehicle or open a new line of credit? No worries! You can choose to lift your freeze permanently or for a brief amount of time, in which the freeze will resume automatically. The quickest way to thaw your credit is to go to the credit bureaus’ websites or by phone. According to Experian, the credit bureaus are required by law to complete the request within an hour. To avoid any delay, make sure to have your required PIN or password to lift the credit freeze. Planning ahead can also eliminate any possible delay. Don’t wait until the very last minute to thaw your credit when applying for credit.
Freezing your credit is another layer to protect you and your finances from fraudsters. It is very important to continue to remain vigilant in all areas of your financial life. Stay alert by retrieving a free copy of your credit report from each bureau every 12 months through www.annualcreditreport.com.