A credit freeze restricts access to the sensitive information contained in your credit report. This can prevent fraudulent credit applications even if an identity thief possesses vital personal details like date of birth and Social Security number. By taking this extra precaution, you can better shield yourself from potential malicious activity.
What is a credit freeze?
A credit freeze is an important tool for preventing fraudsters from gaining access to your credit reports. By blocking access to these documents, it can protect you from their attempts to open up fraudulent accounts or take out loans using your personal information. When applying for a loan or credit card, lenders often check the applicant’s credit report as part of the approval process. With a credit freeze in place, the potential creditor is unable to access the necessary data required for approval. Therefore, it provides an extra layer of protection against financial fraud.
How can you freeze your credit?
If you wish to freeze your credit, reach out to each of the three major credit bureaus: Equifax, Experian, and TransUnion. Doing so will restrict access to your credit report and score.
- Equifax: Reach out to 800–349–9960 or visit the website for instructions on how to initiate a credit freeze.
- Experian: Connect with 888‑397‑3742 or go online for a comprehensive guide on freezing your Experian credit report.
- TransUnion: Phone 888–909–8872 or access their website for information on enacting a TransUnion credit freeze.
To ensure maximum protection, you should also consider freezing your credit report at two lesser-known credit bureaus. These may possess information related to you.
- Innovis: Contact us at 866–712–4546 or visit our website.
- National Consumer Telecom & Utilities Exchange: Reach out to us at 866–349–5355 or visit our online portal.
Tips to freeze your credit at all three bureaus.
Gathering all necessary documents before initiating a credit freeze is highly recommended. While the requirements may vary slightly between each of the three major credit bureaus, it’s important to have the following information on hand:
- Social Security number
- Date of birth
- Address
Initiating a credit freeze requires different forms of documentation depending on the method you select — online, by phone, or by mail. You may need to provide additional information such as:
- Copy of your passport, driver’s license, or military ID
- Copy of tax documents, bank statements, or utility bills
- Proof of address, like a utility bill
If you decide to initiate a credit freeze by phone, be prepared to answer authentication questions. A credit freeze will protect your credit file until you choose to lift it. You can temporarily unfreeze your credit if you need to apply for new credit.
How can you unfreeze your credit?
To unfreeze your credit, visit the credit bureau website and use the same account used to freeze it. Alternatively, you may be able to do it by phone or post if you can provide relevant verifying information. In most cases, the process is instantaneous when done online; otherwise, expect a wait time of several days.
Why do you need to unfreeze your credit?
It is good practice to keep your credit frozen. But, there are certain cases where you may need to unfreeze it temporarily. This includes when applying for a loan or line of credit such as a mortgage, car loan, rental apartment, or cell phone contract. Additionally, if you plan on using a “buy now, pay later” service while online shopping (e.g. Affirm), you must lift the credit freeze at all bureaus with which you have placed them.
Using BNPL services can be both advantageous and disadvantageous for shoppers who have frozen their credit. It can help prevent quick and mindless spending but also becomes tedious if used frequently. Therefore, carefully consider when to use BNPL services to make informed financial decisions.
Instructions for unfreezing your credit!
For a single credit application, you should unfreeze only with the relevant bureau. You can contact the creditor to confirm which bureau they will use for your credit check. For multiple applications in quick succession, it could be beneficial to lift the freeze at all three major bureaus. To provide yourself peace of mind, you can also set a specific time limit on each freeze. This way it automatically resumes after the allotted period. By taking these measures, you don’t need to worry about restarting your freeze manually. When setting a time limit, make sure to give lenders enough time to do their checks.
Ways to freeze your child’s credit!
Parents and guardians can freeze the credit of their children under 16. To do this, you must notify the relevant credit bureau. They will create a credit file for your child if they don’t already have one. When sending your request for the freeze, you’ll need to provide the information required of an adult applying for a credit freeze. Also, you may need to provide documentation to verify your child’s identity and that you have the authority to freeze the credit.
If you need to freeze the credit of a spouse or incapacitated adult, you must submit the necessary paperwork (including birth certificates, court orders, and Social Security cards) to Experian, Equifax, and TransUnion. Detailed information regarding this process can be found on each agency’s website along with downloadable freeze request forms.
When should you get a credit freeze?
It is advisable for all consumers to protect themselves by freezing their credit, now that doing so is free. If you are not currently shopping for a credit card or loan, taking this preventive measure is wise. If your data has been exposed as part of a data breach, the importance of freezing your credit increases; if your Social Security number has been made available, this is especially the case. Richdash highly recommends that all consumers freeze their credit.
Downsides of a credit freeze:
There are a few points here:
- A credit freeze does not guarantee total protection from identity theft or fraud. Even with a freeze in place, you may still be susceptible to fraudulent charges on an existing credit account. It becomes possible if it’s been compromised, as well as other scams involving your Social Security number such as health care or tax refund schemes. To minimize risks, it is important to remain vigilant by reviewing monthly statements for any suspicious activity and reporting any potential issues to the relevant authorities immediately.
- It is possible to create a mySocialSecurity account (which can help you track earnings, estimate future benefits, etc.). Even if you have a credit freeze or fraud alert in place; however, this requires visiting a Social Security office in person. To reduce waiting times, it is recommended to make an appointment beforehand.
- Your insurance rate can be affected by using credit information in setting rates, depending on the legal framework in your state. To maximize potential discounts associated with a good score, it may be necessary to unfreeze your credit report especially if an insurer is unable to access it. To ensure that you don’t miss out on such opportunities, contact your agent regularly and find out if there are any steps you need to take.
- It’s true that having to remember to lift the freeze when you want to apply for credit can be somewhat inconvenient, but it is much better than facing the hassle of dealing with fraud or identity theft without proper protection.
- To help you stay on top of your credit freeze status, it can be useful to keep track of when you first froze and when any subsequent lifts or requests for additional freezes took place. Additionally, if ever in doubt about the status of your credit, there are a variety of resources available that can help you check if your credit is under freeze.
Credit freeze or credit lock: What is the difference?
A credit freeze and a credit lock both restrict access to your credit reports. However, a credit bureau offers a credit lock as an optional service which may charge a fee. Equifax’s credit lock is free; TransUnion offers the service for free through its True Identity product or as part of its paid subscription; Experian’s lock is only available as part of a paid membership package. Credit freezes are legally mandated and therefore free of charge. Credit locks may be more convenient to use, such as being able to open and close with just a single swipe on an app. But, they provide far fewer legal protections than those afforded by freezes.
Can access frozen credit reports?
A credit freeze restricts access to your credit reports, with certain exceptions. It prevents most people from accessing them, making it a powerful tool for protecting yourself from identity theft and financial fraud:
- You can still view your records, including accessing your yearly credit reports for free. Additionally, you can review a summary of your credit report and score from Richdash while the reports are frozen.
- Your current lenders, debt collectors, and marketers who wish to send you offers will have access to your credit reports.
- In certain cases, government or child support agencies may also be able to view them.
- You can give employers or potential employers permission to check your credit report (which has certain details removed).
