Freezing Credit Is Free. Here’s Why You Should Do it Now.
Turning on a credit freeze is now more straightforward to activate and to temporarily 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, TransUnion, and Experian, now provide free credit freeze and unfreeze services. 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 which 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 offer smartphone apps that let consumers 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).
Note: Consumers need to be careful when using the website and apps; they market other fee-based products and services.
However, you do not have to pay for credit freezes, which are now entirely free.
Credit bureaus also offer a service called a credit “lock,” which 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 cell phone, 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 to be you online to claim your Social Security benefits. To help prevent such theft, check your credit card statements regularly for suspicious 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 allowing you to access each bureau only once a year.
Identity thieves can intercept new credit and insurance offers sent through the US Postal Service 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
- TransUnion: Manage Credit Freeze – Log in to manage the freeze.
- Mobile apps – Android Phones & Tablets
- Experian: Freeze
- Equifax: Create Credit Freeze – Click “Get Started”
- Equifax: Manage Credit Freeze – Sign into myEquifax to manage your security freeze.
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.
Identity Theft: Specific Issues
- Child Identity Theft – Here’s how to protect your child’s personal information against theft.
- Can I change my Social Security number?
- 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?