What Is A Credit Freeze And Why Is It Important?

A credit freeze limits access to your credit file in order to make it more difficult for someone to open new accounts in your name. It can also help you prevent identity theft.

A credit freeze will block lenders and most businesses from accessing your credit history. You can put the freeze in place and then lift it as necessary. The freeze will continue until you ask the credit bureau to lift it.

How Do I Freeze My Credit Report?

You will need to get in touch with each credit bureau: Experian, Transunion, and Equifax. You can contact each online, by phone or by mail. If you contact the credit bureaus online or by phone, they must begin the freeze within one business day. If you use the mail, then they must begin the freeze within three business days. It is important to remember that you must contact all three bureaus.

Experian: 888-397-3742 Experian.com

Transunion: 888-909-8872 Transunion.com

Equifax: 800-685-1111 Equifax.com

The credit freeze will stay in place until you request the credit bureaus to lift it.

How Do I Unfreeze My Credit Report?

Unfreezing your credit report is a little more complicated than freezing it. You can lift your credit freeze to allow a specific business to be able to access your file, or for a specified amount of time, allowing anyone to access it during that time. It is usually recommended to lift the freeze for a period of time rather than for a specific business, as it’s common for businesses to use a third party for credit checking and lending purposes.

Each bureau will give you a verification number at the time you place the freeze to use when you are ready to lift the freeze with that agency. It’s best to lift the freeze via their website if you can. Whether you call or go online, you will need to have certain information at hand, such as social security numbers, data they may use to verify your identity (such as the amounts of loan payments, previous addresses, the names of banks at which you have had loans, etc.), and the verification number you were given when you initially placed the freeze.

Will This Hurt My Credit Score?

No. A credit freeze will not hurt your credit score. For more information visit https://www.consumer.ftc.gov/articles/0152-how-credit-scores-affect-price-credit-and-insurance

Remember that a credit freeze is the most important step you can take to protect your identity. However; don’t let this process give you a false sense of security. Thieves can still find ways to file tax returns in your name or run up your current credit cards. Always monitor your accounts and report any suspicious activity.

Philip Swann is the Principal and Founder of Well-Planned Financial, LLC, a fee-only financial advisory firm. Philip provides services to young professionals to plan their financial future taking on the role of their financial ally by being an educator, coach, advocate, and accountability partner. Philip has 32 years of small business experience. Schedule a complimentary call with Philip at wellplannedfinancial.net.