Do you know what a credit freeze is and how to put one in place?
A credit report is a record of your financial history. If you want to take out a loan or mortgage, finance a car or open a credit card, your credit report gets accessed.
You can freeze it to prevent a criminal from doing any of that in your name.
“Freezing credit can offer peace of mind that someone won't use your information to open a new line of credit under your name for fraudulent purposes,” said Melissa Lambarena, a credit card expert with Nerdwallet.
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If you’re concerned about data breaches or you just want to be proactive in protecting yourself from identity theft, a credit freeze, also known as a security freeze, is a good idea.
Here’s what you need to know:
You have to contact each of the three credit bureaus individually to freeze your credit-- Transunion, Experian and Equifax.
“Freezing your credit is fairly easy to do,” said Lambarena. “ You can either call the bureaus or set up an account online with them, and you typically need your date of birth, name, address and social security number and any other relevant details that they might need to get started.”
Any company that you already have an account with will still be able to access your credit report regarding the existing account, but they will not be able to use your credit report to open a new account in your name.
It will not impact the credit cards that you use and it will not affect your credit score.
And the security freeze will remain on your credit file until you remove it or temporarily lift it, which is also free to do.
“When your credit is frozen, you'll have to remember to temporarily unfreeze your credit whenever you're going to apply for a new loan, a credit card, or maybe an apartment, or even move your utilities, for instance,” said Lambarena. “So, it can require some effort and maintenance, but it's much easier than managing fraud...that's why it's important to just keep note of your login information and make sure that you can remember it when the time comes.”
Go to the credit bureau website and use the account you used to freeze your credit to unfreeze it. If you go online you can remove it in real time, but it is good to give it an hour to go into effect.
You can freeze your child’s credit as well. If the child is under the age of 16, parents can also place a freeze on their child’s credit report at each of the three credit bureaus for free to protect them from child identity theft.
Parents will need to fill out a form and mail it, along with proof of identity and guardianship and copies of the child’s birth certificate and social security card.
You can get more information on freezing your credit at each of the three credit bureaus below.
