Credit freeze
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Contributor note: The discussion thread is in this Bogleheads forum topic: "Wiki article - Credit freeze" |
A credit freeze, also known as a security freeze, lets you restrict access to your credit report, which in turn makes it more difficult for identity thieves to open new accounts in your name. That’s because most creditors need to see your credit report before they approve a new account. If they can’t see your file, they may not extend the credit.[1]
If you’re concerned about identity theft, those reported mega-data breaches, or someone gaining access to your credit report without your permission, you might consider placing a credit freeze on your report.[1]
Readers looking for guidance regarding the Equifax data breach should see: The Equifax Data Breach: What to Do, Federal Trade Commission, September 8, 2017. |
A credit freeze does not
A credit freeze does not affect your credit score.[1]
A credit freeze also does not:[1]
- prevent you from getting your free annual credit report.
- keep you from opening a new account, applying for a job, renting an apartment, or buying insurance. But if you’re doing any of these, you’ll need to lift the freeze temporarily, either for a specific time or for a specific party, say, a potential landlord or employer. The cost and lead times to lift a freeze vary, so it’s best to check with the credit reporting company in advance.
- prevent a thief from making charges to your existing accounts. You still need to monitor all bank, credit card and insurance statements for fraudulent transactions.
- stop prescreened credit offers.
Placing a freeze on your credit report
You can place a freeze on your credit report by contacting each of the nationwide credit reporting companies:[1]
- Equifax — 1-800-349-9960
- Experian — 1‑888‑397‑3742
- TransUnion — 1-888-909-8872
You'll need to supply your name, address, date of birth, Social Security number and other personal information. Fees vary based on where you live, but commonly range from $5 to $10.[1]
After receiving your freeze request, each credit reporting company will send you a confirmation letter containing a unique PIN (personal identification number) or password. Keep the PIN or password in a safe place. You will need it if you choose to lift the freeze.[1]
Online resources
Here is a list of credit reporting agencies:
- Advanced Resolution Services
- This agency has no online resources, but can be contacted from the information in this article: Two Credit Bureaus You Should Freeze Before You Apply For A U.S Bank Credit Card, from Doctor of Credit, May 26, 2015, Viewed September 14, 2017.
- ChexSystems
- Experian
- Security Freeze Center at Experian
- Security Freeze. How to freeze your credit, including links for your state of residence.
- Transunion
- SageStream, LLC
Before you freeze your credit
Before freezing your credit, you should create an online account with the Social Security Administration. Your identity is verified by Equifax. A credit freeze will cause the identity check to fail.[2]
If you are interested in monitoring your credit score with Credit Karma (or some other credit monitoring service), you should do it before freezing your credit, or you will need to lift the freeze in order to register your account. You can (re)freeze your credit after the monitoring account is created.[3]
You may also want to check the fees involved. Each state has passed security freeze legislation setting the amount which a credit bureau is allowed to charge consumers for placing, temporarily lifting, or removing a credit freeze. In addition, numerous states have “Protected Consumer” groups, who can obtain a security freeze at reduced cost, or completely free. Look up your state to see if these additional protections apply.[4]
Lifting a freeze on your credit report
In a few states, credit freezes expire after seven years. In the vast majority of states, a freeze remains in place until you ask the credit reporting company to temporarily lift it or remove it altogether. A credit reporting company must lift a freeze no later than three business days after getting your request. The cost to lift a freeze varies by state.[1]
If you opt for a temporary lift because you are applying for credit or a job, and you can find out which credit reporting company the business will contact for your file, you can save some money by lifting the freeze only at that particular company.[1]
Fraud alert
A fraud alert is not the same as a credit freeze.
A credit freeze locks down your credit.[1]
A fraud alert allows creditors to get a copy of your credit report as long as they take steps to verify your identity. For example, if you provide a telephone number, the business must call you to verify whether you are the person making the credit request.[1]
Fraud alerts may be effective at stopping someone from opening new credit accounts in your name, but they may not prevent the misuse of your existing accounts. You still need to monitor all bank, credit card and insurance statements for fraudulent transactions.[1]
Three types of fraud alerts are available:[1]
- Initial Fraud Alert. If you're concerned about identity theft, but haven't yet become a victim, this fraud alert will protect your credit from unverified access for at least 90 days. You may want to place a fraud alert on your file if your wallet, Social Security card, or other personal, financial or account information are lost or stolen.
- Extended Fraud Alert. For victims of identity theft, an extended fraud alert will protect your credit for seven years.
- Active Duty Military Alert. For those in the military who want to protect their credit while deployed, this fraud alert lasts for one year.
To place a fraud alert on your credit reports, contact one of the nationwide credit reporting companies. A fraud alert is free. The company you call must tell the other credit reporting companies; they, in turn, will place an alert on their versions of your report.[1]
Notes
See also
References
- ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 Credit Freeze FAQs, from the Federal Trade Commission (FTC), September 2017.
- ↑ Will Social Security's Identity Services Provider change my credit score or credit report?, from the Social Security Administration. Equifax is named here: Definition: Identity Services Provider.
- ↑ I have a security freeze on my credit reports. Can I still use Credit Karma?, from Credit Karma, viewed September 14, 2017.
- ↑ Consumers Union’s Guide To Security Freeze Protection, from Consumers Union, viewed September 15, 2017.
External links
- The Equifax Breach: What You Should Know, Krebs on Security.
Forum discussions
- Bogleheads forum topic: "Equifax customer information leak"
- Bogleheads forum topic: "Can't freeze credit at Experian?"