Credit card fraud and identity theft are serious issues that can negatively impact a person’s credit score. There are not many free tools to help consumers protect credit, but it’s nonetheless crucial to help qualify for loans and credit cards. One of the most useful ways to protect credit is with a credit freeze.
What is a credit freeze?
A credit freeze makes a credit report inaccessible to anybody except the individual named on the report, their current creditors, and marketers. Also known as a security freeze, it blocks both legitimate creditors and would-be fraudsters from approving any new credit account in the person’s name. Typically, when someone applies for credit using personal information, the lender or creditor checks their credit report first. If there is a credit freeze in place, the creditor cannot see the data they need to approve the application, so they can’t approve the application.
A credit freeze can help prevent identity theft and fraud, even if someone has information like a birth date and Social Security number. Credit freezes stay in place until they’re lifted or “thawed,” so it’s important to remember to do so before legitimately applying for new credit accounts. However, employers or potential employers may check the credit report if it’s necessary to get a credit check for employment. Freezing credit is free with all three of the major credit bureaus and it does not harm credit.
When would someone freeze their credit?
While fraud alerts on a credit report and bank accounts can provide alerts of identity theft attempts, it’s not necessary to wait for a data breach or fraud attempt to protect credit. For most people, freezing credit may be a good idea any time they’re not actively shopping for a credit card or loan, just to err on the side of caution. Other instances where someone should consider freezing their credit include:
Freezing credit is free and is one of the only free ways to protect credit. It’s also generally very easy to do with each of the major credit bureaus. With the frequency of data breaches and cybersecurity scams in today’s world, it’s one of the simplest ways to gain peace of mind.
How to place or lift a credit freeze
Anyone can submit a request to freeze or unfreeze credit online, by phone, or by mail with each of the three major credit reporting agencies. Visit each website to view the step-by-step processes:
Credit agencies must freeze a credit report within one business day when requesting online or by phone. By mail, they must do so within three business days. They must lift freezes within one hour of online or by phone unfreeze requests, or within three business days by mail.
The bottom line
Freezing credit is one of the best ways to protect against identity theft and fraud. While there are few free tools to protect credit, freezes are a simple, fast, and free way to protect credit from fraudulent requests.
Disclaimer: This content is sponsored by myFICO and is provided for informational purposes only. The information shared here is not intended to serve as financial, legal, or credit-related advice. Readers are encouraged to consult with their personal financial advisors or credit professionals to assess their specific situation. To learn more about myFICO’s services, including credit scores and monitoring tools, please visit the myFICO website or reach out to a myFICO representative.
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