If you're concerned about who may be accessing your credit history or if you want to avoid the risk of identity theft, consider implementing a credit freeze. Each state has different laws on when and how you can enact or remove a credit freeze. If you're interested in protecting your credit, understand how the freeze process works and how it can benefit you.
How Do I Freeze My Credit?
To place a freeze on your credit, you must contact each of the three major credit reporting bureaus: Equifax, Experian and TransUnion. You may freeze your credit report with any or all of these agencies at any given time. You can contact them in writing or through their company website to request a freeze. Provide them with your name, Social Security number, date of birth, current address, proof of residence and a photocopy of your state ID or driver's license. Depending on your state of residence, you may have to pay a small fee unless you are over age 65 or a previous victim of identity theft.
What Are the Benefits of a Credit Freeze?
The primary benefit of a credit freeze is that it prevents consumer credit agencies from releasing your personal information to a third-party creditor. This can prevent people from using your information to obtain new credit in your name. It can also reduce the amount of unsolicited credit offers you receive. A credit freeze cannot prevent someone from using credit that has already been established in your name.
Who Can Access My Credit During a Freeze?
A credit freeze does not entirely limit access to your credit. For example, any company that you have previously done business with, such as a mortgage lender or a utility company, would still be able to access your credit. This also applies to any collection agencies contracted by these companies. State agencies, including law enforcement, child support enforcement or tax agencies can also see your credit records. Anyone acting under a court order or subpoena can request your credit history during a freeze.
Can I Apply for New Credit During a Freeze?
As an added security measure, each credit reporting agency provides you with a unique personal identification number (PIN) or password. Any time you wish to apply for new credit, you must contact the appropriate credit bureau and verify your identity using your PIN. This temporarily lifts the freeze and allows lenders to view your credit history for a limited time. Depending on your state, you may have to pay a fee to lift a credit freeze. Also, processing a lift can take up to three days, making it difficult to apply for instant credit offers.
Does a Credit Freeze Hurt My Score?
Placing a freeze on your credit has no negative impact on your credit score. In some cases, it may help to boost your score by reducing the number of inquiries into your credit report.
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