Can I Freeze My Credit?

When you freeze your credit report, this makes it unavailable for lenders so they cannot issue new credit in your name. This can be an effective guard against credit-related identity theft for previous victims or people who think they might be at risk. The credit bureaus allow anybody to place a credit freeze for any reason.

Benefits

A security freeze blocks lenders from being able to view your credit report. Therefore, most lenders will choose to not open a new credit file in your name because they cannot access your credit history. This prevents identity thieves from obtaining credit using your name. You will not have to deal with closing fraudulent accounts and removing the accounts from your credit report, which can provide peace of mind.

How to Freeze

You must initiate a credit freeze with each of the three major credit bureaus. Experian, TransUnion and Equifax all have online systems set up for consumers to freeze their credit. However, if you are a victim of identity theft, the bureau might require you to initiate the freeze by mail and send a copy of your police report documenting the identity theft. This makes you eligible for any free protection in your state for identity theft victims. The credit bureau's online system will provide details on how to proceed if you need to freeze your credit by mail.

Cost

Many states have laws that waive all fees for identity theft victims. If you do not have documentation of identity theft, you will likely need to pay a fee of about $10 at each credit bureau to place, temporarily lift or permanently end the credit freeze. The cost varies by state, with some allowing free credit freezes for everybody and others charging up to $20 for parts of the process. Some states give discounts to senior citizens.

Considerations

Although a credit freeze makes it difficult for identity thieves to obtain credit, it also complicates the process for you. If you want to open a new credit account, you will have to temporarily lift the credit freeze so the lender can check your credit. This process can take a few days, which could force you to delay a purchase. In addition, you might have to lift the credit freeze so an employer, landlord or utility company can check your credit. If your state charges for lifting the freeze, this can get expensive over time.