What Is A Credit Freeze?
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Whether you're worried about data breaches or scammers digging through your mail, identity theft is no joke. Identity thieves can wreak havoc on your credit if they manage to open new accounts and cause damage to your credit score. That's why the government now requires that credit bureaus offer free credit freezes for everyone.
What Is a Credit Security Freeze?
A credit freeze, or a credit security freeze, is a restriction you can place on your credit report that limits people from checking your credit without your explicit consent. If someone were to try opening a new account with your identity while you have a credit freeze in place, the creditor would only see a message or code indicating your files are frozen.
Since people can't check your credit report during a credit freeze, it also prohibits you from opening new accounts unless you temporarily or permanently lift the credit freeze.
What Does Freezing Your Credit Do?
Freezing credit ensures that no one can view your credit report or open a new credit account using your information. For example, even if an identity thief has access to your personal information, such as date of birth or Social Security number, they still won't be able to open a new account.
Even if you want to open a new account, it's impossible to do so unless you unfreeze your credit because the creditors cannot view your credit report. Individuals with a frozen credit report can still apply for a new job or housing, though, as well as buy insurance while the credit freeze is in place.
How to Freeze Your Credit
Learning how to freeze your credit is a simple process. Take a look at the steps below to more closely understand how this works.
1. Contact the Major Credit Bureaus
The first step in initiating a credit freeze is to contact all three major credit bureaus — TransUnion, Experian and Equifax. Their processes may vary slightly, but you can generally freeze credit reports either online, over the phone or by mail.
Online Credit Freezing
Creating an online account is one of the most convenient ways to freeze your credit. All three major bureaus have an online service center that allows you to create a free account and manage your credit.
If you already have an account, you need only enter your username and password to get started. Setting up an account requires entering more information, such as your address, Social Security number and identity verification.
Credit Freeze By Phone
If you prefer to have someone talk you through the process of setting up a credit freeze, you can contact each of the credit bureaus by phone:
- TransUnion credit freeze: (800) 916-8800
- Experian credit freeze: (888) 397-3742
- Equifax credit freeze: (888) 378-4329
When you freeze your credit over the phone, you may be asked to set up a PIN or code associated with your freeze if you need to make changes in the future.
Credit Freeze By Mail
All three credit bureaus also allow you to submit your credit freeze request by mail.
TransUnion requires a written request that includes your name, address and Social Security number. You can send it to:
TransUnion
PO Box 160
Woodlyn, PA 19094
Experian requires a written request that includes your name, Social Security number, complete addresses for the previous two years, date of birth, a copy of your driver's license or other government-issued ID and a utility bill or bank statement. You can send it all to:
Experian Security Freeze
PO Box 9554
Allen, TX 75013
Equifax has forms for different types of security freezes (such as adult freezes and minor freezes). You must send a copy of the completed form plus proof of identity and address to:
Equifax Information Services LLC
PO Box 105788
Atlanta, GA 30348
2. Choose a Temporary or Permanent Freeze
If you're wondering how to lift a credit freeze, the answer is pretty simple. A credit freeze remains intact for as long as you leave it that way. A life credit freeze will limit access to your credit report unless you explicitly lift the freeze, which you can either do temporarily or permanently.
3. Manage Your Frozen Credit
There won't be much to manage if you're freezing your credit as a preventative measure against identity theft. However, if you decide to apply for credit or lift the freeze altogether, you'll have to complete a few steps.
Just like when you set it up, you'll have to contact all three credit bureaus to manage your freeze. You can use the same method that you originally used to set up your freeze, whether you want to lift it temporarily or permanently remove it.
If you set up your freeze online, you can log in to your online account and manage the freeze. If you set up the freeze by phone, you can give the bureaus a call back and verify your identity to manage it.
4. Use a Credit Monitoring Service
One of the benefits of freezing your credit is that it can help prevent identity theft. Credit monitoring services can also give you a heads-up if there is any suspicious or fraudulent activity on your credit report. These alerts are especially helpful for anyone who is afraid of having already become a victim of identity theft and those who believe they may be at risk.
Credit monitoring services are included in many identity theft protection services, like Norton's LifeLock. In addition to simple credit monitoring, you can receive additional features like bank account and dark web monitoring.
Credit Freeze Vs. Lock
Credit freezes and credit locks work much in the same way. They both protect your credit report and make it so others can't access it to approve or deny loans or lines of credit. Whether you have your credit report frozen or locked, no one can take out new credit in your name.
The biggest difference is that a credit lock is offered as a paid service from the credit bureaus because they are easier to manage. You have to pay a fee to each credit bureau. Otherwise, creditors or scammers could simply access your report from another credit bureau.
TransUnion's credit lock is included in its credit monitoring service for $29.95 per month, Experian CreditLock is $24.99 per month, and Equifax's Lock & Alert is free.
What you gain by paying for this service is convenience. Once you set up your accounts with each bureau, you can use its mobile app or website to lock or unlock your credit report with the push of a button — you won't need to memorize any pin numbers or make phone calls. It's simpler than a credit freeze, which makes it more convenient for those who expect to apply for credit in the future.
Fraud Alert Vs. Credit Freeze
A fraud alert is a simpler way to protect your credit that doesn't necessarily limit access to your credit report. You can place a fraud alert on your credit report by contacting just one of the three major credit reporting agencies. Whichever one you contact is responsible for contacting the other two to make sure your fraud alert covers all three.
When you set up the fraud alert, you can also receive your free annual credit report from each bureau. The fraud alert will last up to one year, and you can renew it if needed. Once it's set up, you'll receive a notification if anyone tries to open a new account using your Social Security number.
Lenders will have to take additional steps to verify that the person applying for credit is actually you. In order to do this, they'll call the phone number you list with your fraud alert. While this significantly decreases the chances that someone will open a fraudulent account in your name, it's not a guarantee, especially when it comes to accessing current accounts.
How Long Does a Credit Freeze Last?
A credit freeze lasts as long as you want it to. When you set up your credit freeze, there is no time limit or renewal period. You simply set it up, choose your PIN (if required) and then you can use the PIN to lift the credit freeze at any time in the future. You can also choose to temporarily unfreeze your credit report if you need to access your credit report for loans or other accounts.
How To Unlock a Credit Freeze
Trying to remove a credit freeze is just as simple as setting it up. If you originally placed your credit freeze via an online account, this is also a very convenient way to unfreeze your credit report.
You can also unlock credit freezes via phone, but you may need to provide the bureau with the PIN that you used to set up the freeze. If you remove a credit freeze online or over the phone, the credit bureau has to remove the freeze within an hour.
Lastly, you can remove credit freezes via mail, although this takes longer. The credit bureau can take up to three business days if you request to have your report unfrozen by mail. Moreover, you must contact all three credit bureaus to remove the credit freeze from each one.
What Is a Credit Freeze FAQ
How do I freeze my credit on all three bureaus?
One of the most inconvenient parts about freezing your credit report is that you must contact all three credit bureaus.
There's no way to get around this. You'll have to either set up online accounts on all three websites, call each agency individually or send three pieces of mail. If you try setting up a credit score freeze with only one agency, a creditor could simply access your report with one of the other agencies.
Should I freeze my credit?
Does a credit freeze prevent soft inquiries?
Why is my credit frozen if I didn't freeze it?
There are a few reasons why you might discover that your credit report is frozen. First, it could be a simple lapse of memory (we've all been there). If you're not sure whether your credit report is frozen, you can contact the credit bureaus to ask them.
Another reason why your credit might be frozen is if a guardian froze it for you. Parents, guardians and conservators have the right to freeze the credit for dependents who are under the age of 16 or incapacitated.
Does freezing your credit affect your credit score?
What is the downside of freezing your credit?
How much does it cost to freeze your credit?
Summary Of Digg's What Is A Credit Freeze
A credit freeze is an easy, accessible tool for protecting your credit. All three major credit agencies allow you to set up credit freezes for free either online, over the phone or by mail. Setting up a credit freeze will prevent new creditors or identity thieves from accessing your credit report, which means no one can open new accounts under your name.
While credit freezes can protect your finances, you must also be able to manage them properly. While the steps for managing or removing credit freezes are simple, they can be a little inconvenient since you'll need to contact all three credit bureaus every time you want to make a change. That being said, a little bit of effort may be worth the credit protection in the long run.
