How to freeze your credit

Every time you provide personal information to open a credit card, get a loan, or rent a car, it increases the likelihood that your information will fall into the wrong hands. Data breaches hit an all-time high in 2021, according to the Identity Theft Resource Center.

If your personal information has been compromised by a data breach, you may be concerned about identity theft. But even if you think your personal information is safe, it’s wise to take steps to prevent thieves from opening accounts in your name.

Freezing your funds is a simple step that prevents anyone from using your personal information for financial gain.

How do I freeze my balance?

All three major credit card companies offer you the option to freeze your balance. When your credit file is frozen, creditors cannot view your reports, preventing people with your personal information from opening new lines of credit on your behalf.

If you want to apply for a new credit or loan, you can unlock via PIN or phone.

Equifax

Equifax requires you to create a myEquifax account to manage online access to your credit file. You must provide your name, address, date of birth, social security number and mobile phone number in order for Equifax to verify your identity. They also create a password so you can access your account. Once your account is set up, you can manage suspensions, check credit reports, and initiate or monitor disputes. To initiate or manage a hold by phone, please contact the Equifax Call Center at 800-387-4329.

Experian

Experian has an online Safe Freeze Center where you can start and manage your freezes. You must provide your full name, address, date of birth, email address and social security number. You can create a PIN or ask the company to give you one. You always need a PIN if you want to delete or restore a blocked account.

TransUnion

TransUnion requires you to register for a PIN-controlled account to manage your ban. You must provide the same identifying information requested by other credit bureaus. You must choose a six-digit PIN to start and stop the funds lock.

You can also visit the Google Play Store or Apple Store and download each credit bureau’s credit lock app. These apps allow you to manage access to your account with a simple swipe.

What are the pros and cons of freezing my balance?

Freezing your balance prevents creditors from checking your reports before opening a new account. This stops identity thieves from opening accounts in your name. However, it will also prevent you from getting new funds until you unlock them.

If you’re applying for new credit, such as a mortgage, ask which credit bureaus the lender is checking, and then temporarily stop freezing those accounts.

Unblocking is quick and easy as long as you keep track of your password or PIN. TransUnion says the ban is usually lifted once you request it, but recommends allowing an hour to open an account.

The freeze will not affect your credit score or existing credit limit. If your credit file is locked and someone steals your credit card number, they can debit the account, so freezing your balance won’t stop all illegal activity.

Is there any other way to freeze my balance?

Credit freezes are easy, free and available to everyone. Credit bureaus offer another product, the credit lock, which allows you to control access to your account through an app. The ban may be free, or you may need to sign up for a paid credit monitoring service. You cannot freeze and ban your account at the same time. If you freeze your account and then decide to ban it, you must unban it first.

TransUnion offers TrueIdentity, a free product that allows you to instantly lock or unlock your credit report through the app. You’ll also be notified when someone tries to access your credit file. The company’s paid credit monitoring program adds features like credit scoring tools, access to credit scoring experts, and identity theft insurance.

Equifax offers Lock & Alert, a free locking app, so you can control when your account is unlocked. The app also sends alerts when someone tries to access your account.

Experian requires you to purchase their Creditworks Premium service to use their blocking feature. The service includes identity theft insurance, new credit activity notifications and monthly updated credit reports.

Another option for a credit freeze is to purchase a third-party identity theft protection and monitoring service.

Short-term option

The credit freeze is free and open to all consumers. The report will remain frozen until you unfreeze it. Consumers who meet certain criteria have other tools to control access to their credit information.

• Fraud Alerts: If you suspect possible fraud, you can set up fraud alerts on your account. When a fraud alert is active, businesses need to verify your identity before issuing credit or changing existing accounts on your behalf. Fraud Alerts are free for one year but can be renewed. If you contact any of the three major credit bureaus to initiate a fraud alert, they must instruct the other credit bureaus to issue an alert on your account. You can also get a free copy of your credit report from all three bureaus.

• Advanced Fraud Alert: This free option is only available to identity theft victims who file an identity theft report with the police or the FTC. It lasts for seven years and requires the company to contact you before issuing a loan on your behalf or changing your account. You also have the right to get a free credit report from any institution twice a year. (Place them so you can monitor your credit every other month.). Just like a regular scam alert, if you apply to one office, it will connect you to the other office.

• Active Duty Alerts: Service members can set active duty alerts that require the company to verify their identity before providing credit. The initial notice lasts for one year and can be renewed as long as you are on-site. There is no fee and if you contact the credit bureau they must notify the other two.

Can I freeze my child’s credit report?

Minors often do not have credit reports on file, making it easier for scammers to steal their identities. To protect your child, you can freeze their credit report.

When a parent or guardian asks to suspend a child’s credit, the credit bureau prepares a credit report for the child and then blocks it. Until then, parents must prove their identity, the identity of their children, and their relationship. Copies of documents such as driver’s license, child’s birth certificate and social security card must be submitted.

You must apply to any entity wishing to freeze your child’s funds.

If my credit report is frozen, can anyone see it?

When you freeze your credit report, the credit bureau grants designated entities access to it. This includes:

• Government agencies
• Businesses that use credit information for purposes such as arranging insurance or employment screening
• Companies that provide credit monitoring and related services
• Companies with which you have checking accounts and collection agencies that work on their behalf
• Companies that offer pre-approved loan offers.

Will my credit freeze affect my credit score?

Freezing your balance will not affect your credit score. However, if you don’t unblock when you apply for a new line of credit, lenders won’t be able to see your credit report. If the lender cannot verify your credit report, your loan application will be rejected.

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