Would you like to reduce the risk of identity theft and the resulting financial chaos?
A credit freeze is an effective tool that reduces the risk of identity theft and the resulting financial chaos that typically follows.
My Story
For me, as well as many other people, it’s pretty standard to receive a notice that a database containing personal information has been hacked.
The most recent notice came from none other than the state of West Virginia.
The state system was hacked and my personal information had been compromised.
Unfortunately, there was a significant lag of time between when the hack occurred, and the notice was mailed.
By the time you are notified that you are part of a data breach the damage could already have been done.
Freezing your credit is a proactive solution that reduces the risk of identity theft and the chaos that follows
What does it mean to freeze your credit?
A credit freeze restricts access to your credit report. If a creditor is unable to access your credit, they should be unable to open any new accounts in your name.
Keep in mind this applies whether it’s a fraudulent or legitimate request.
A credit freeze is appealing for a variety of reasons.
There is less worry when someone gets your personal information through a hack.
A credit freeze makes it more difficult to use personal information obtained through a data hack.
When opening a new account, creditors typically request a credit report and a credit score.
If a credit freeze is in place, they will not have access to either, and it could result in an automatic denial of the new account.
The downside of a credit freeze is that when you legitimately want to apply for a loan or credit card, it will be necessary to “unfreeze” your credit.
Placing a credit freeze doesn’t completely lock down your credit report.
Certain companies and individuals, such as current creditors, landlords and insurance companies, will continue to have access to your credit report.
Ditto for debt collectors.
If you use a credit monitoring service, such as Credit Karma, you will still be able to use the service to monitor your own credit. Just make sure you sign up before you initiate a credit freeze.
Placing a freeze on your credit is free.
Placing a freeze on your credit is not a service for which you pay. It is a free service offered by all three credit reporting agencies.
It’s easy to place, or lift, a freeze on your credit.
Contact all three credit reporting agencies by phone, mail, or online.
Each has their own procedure that must be followed and all three must be froze and managed separately.
It’s quick to place a credit freeze.
If you make your request online or by phone, the freeze must be placed in one day.
If the request is submitted by mail, credit bureaus have three days to put the freeze in place.
It’s both easy and quick to thaw your credit.
Online or by phone, a freeze has to be lifted in one hour.
My mail, agencies are allowed three days to lift the freeze.
There’s not a lot of difference between a credit freeze and a credit lock.
A credit freeze and a credit lock accomplish the same purpose. Once they are in place they both limit who can access your credit report.
However, a credit freeze is free and a credit lock is typically a service offered for a fee by a company.
Have you heard the horror stories of kids growing up and finding out that their credit has already been ruined?
A freeze can be placed on the credit of a minor child as well as an incapacitated adult.
Would you like to reduce the risk of identity theft and the resulting financial chaos that typically follows?
A credit freeze is a major tool in the arsenal of things you can do to protect yourself against identity theft and the chaos it often causes.
Note: A credit freeze is not foolproof. Continue to monitor your credit report and credit score, especially after you receive notification of a data breach.
This post is not intended to be any kind of financial advice. I am not any kind of professional. The purpose of this and every post is to offer little ideas and solutions for everyday situations.
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