Freezing Credit Is Free. Here’s Why You Should Do it Now.
Turning on a credit freeze is now more straightforward and friendly to activate and temporally lift than ever. In addition, placing a security freeze on your account makes it difficult for criminals to use stolen data to open fraudulent accounts, or borrow money, in your name.
Credit bureaus gather and hold records of your accounts and the payment history that credit card companies and lending institutions use to decide whether you’ll pay your bills. However, if your credit file is frozen, the bureaus won’t provide information to lenders unless you “thaw” the freeze first, using a (PIN) personal identification number.
Under the current federal law, credit freezes are now free nationally for everyone. The three primary credit reporting bureaus, Equifax and TransUnion, and Experian, now provide free credit freeze and un-freeze service. For credit freezes to work effectively, you must place a freeze at all three bureaus.
The credit freeze process is not as easy as it could be. Consumers are required to place freezes at the three bureaus separately and keep track of three PINs. It’s impossible to know what credit bureau a lender might use; consumers usually must lift the freezes at all three bureaus when applying for new credit.
The three credit bureaus now provide smartphone apps that consumers can use to freeze and thaw their credit more quickly. They are available for both Apple and Android phones (At this time, I can only recommend the TransUnion apps, the other two bureaus apps try to upsell to paid products). Of course, consumers need to be careful when using the website and apps; they may market other fee-based products and services. However, you do not have to pay credit freezes are now entirely free.
Credit bureaus also offer s service called a credit “lock,” they promote as a more convenient way to protect your data. However, some of these offerings carry fees. Most consumer advocates favor freezes because the rules are set by law rather than the credit bureaus themselves.
It’s also recommended to freeze your file at a less well-known reporting agency, the National Consumer Telecom and Utilities Exchange (NCTUE). They provide credit information to some cellphone, pay television, and utility companies. (Consumers have had cellphone accounts opened in their names, even with freezes on their credit reports at the main bureaus.) But, again, there is no cost for an NCTUE freeze.
The law allows parents to create and freeze credit files for their children under 16 to prevent their identities from being used fraudulently. In addition, the Federal Trade Commission offers information on how to protect your children’s accounts.
Freezes will not protect you from all types of fraud, like a criminal using existing credit card numbers or pretending as you online to claim your Social Security benefits. To help prevent those types of theft, check your credit card statements regularly for questionable charges. In addition, you should set up and monitor an online Social Security account to prevent criminals from opening one first and diverting your benefit checks.
You should check your credit report periodically. Each of the three credit bureaus must provide one free report a year at annualcreditreport.com. (Having a security freeze will not prevent you from getting your free annual report the FTC tells you how.) I suggest getting a report from one of the three bureaus every four months on a rotating basis. These reports will help you keep an eye on your credit reports for free by only accessing each bureau once a year.
Identity thieves can intercept new credit and insurance offers sent through US Postal mail to get your ID information. If you use the mail-in form, you can opt out of receiving offers for five years online or permanently.
Visit optoutprescreen.com; you can opt-out for five years online or download a mail-in form to permanently remove the pre-approved credit and insurance offers.
Visit these websites to set up security freezes:
- TransUnion: Create Credit Freeze – Complete form steps 1 through 3
- TransUnion: Manage Credit Freeze – Login to manage freeze.
- Mobile apps – Apple Devices or Android Phones & Tablets – OK.
- Experian: Freeze – Click “Add a security freeze” then choose “Freeze my credit file” – Remove Experian freeze select “Remove or lift a security freeze.”
- Mobile apps – Not recommended at this time; the app is pushing an upsell.
- Equifax: Create Credit Freeze – Click “Get Started”
- Equifax: Manage Credit Freeze – Sign into myEquifax to manage your security freeze.
- Mobile apps – Not recommended at this time; the app is pushing an upsell.
In addition to the big three bureaus, you might also consider freezing access at the two smaller ones.
- Innovis: Security Freeze – Choose Security Freeze Option
- To lift freeze online: Submit the Security Freeze Request Online form. (Note: You will need your PIN)
- National Consumer Telecom and Utilities Exchange
Identity theft resources at the FTC website
Protecting Your Identity
- Credit Freeze FAQs – If you’re concerned about identity theft, data breaches, or someone gaining access to your credit report without your permission, you might consider placing a credit freeze on your report.
- Financial Readiness in Times of Disaster – You’ve got batteries, a tank of gas, and water. Are your financial papers and personal documents stored safely in case of an emergency?
- How to Keep Your Personal Information Secure – Safeguard your personal information, whether it is on paper, online, or your computers and mobile devices.
- Identity Theft Protection Services – Describes identity theft protection services you can buy and free and low-cost alternatives you can use to guard against identity theft and recover if identity theft occurs.
Discovering Identity Theft
- Identity Theft – Here’s an overview of what to know and do about identity theft.
- Warning Signs of Identity Theft – Warning signs include credit or debit charges you don’t recognize, bills for accounts you didn’t open, and IRS notices that say you filed multiple tax returns.
Identity Theft: Specific Issues
- Child Identity Theft – Here’s how to protect your child’s personal information against theft.
- Do You Need a New Social Security Number? – You must report the misuse of your Social Security number. Now, should you get a new — or replacement — number or card?
- Extended Fraud Alerts and Credit Freezes – Placing both extended fraud alerts and credit freezes on your credit reports can make it more difficult for an identity thief to open new accounts in your name.
- Tax-Related Identity Theft – Do you know the warning signs that an identity thief uses your Social Security number?
IdentityTheft.gov is the federal government’s one-stop resource for identity theft victims.
- Report identity theft and get a recovery plan
- Recovering from Identity Theft – Is someone using your personal information to open accounts, file taxes, or make purchases?