Will Your Credit File Be Updated While You Have a Security Freeze?

A security freeze --- or credit freeze --- is a voluntary option allowing consumers to restrict potential lenders from accessing a personal credit report. Prior to lending, creditors use your credit report to determine creditworthiness and financial responsibility. Generally, a security freeze request helps prevent identity theft by deterring unauthorized individuals from applying for credit in your name.

Facts

Potential creditors cannot access your credit report while a credit freeze is active. You can access your own report; current lenders, employers and others with whom you have an existing relationship can update financial information or check your credit report. A security freeze does not prevent credit bureaus from updating information. Creditor access is limited to companies you gave authorization to prior to the freeze. All three major U.S. credit reporting agencies --- Equifax, TransUnion and Experian --- allow security freezes.

Placing a Freeze

United States residents in all states, the Virgin Islands, Puerto Rice, Guam and members of the Armed Forces may apply for a free security freeze when identity theft is involved. Request a freeze by contacting the applicable credit report agency. In cases of identity theft, proof is required for a free security freeze. A voluntary security freeze without identity theft may incur a $3 to $20 charge, depending on state laws. For additional protection, some states allow free security freezes for children and adults age 65 or older without identity theft problems.

Removing a Freeze

To ensure you have authority over who pulls your credit report, the applicable credit bureau supplies you with a Personal Identification Number, or PIN, used to remove or lift the freeze. Depending on a credit bureau's policy, you may lift or remove the freeze by phone, online or by mail. A temporary lift allows all new creditors to access your credit information for a short time, or you may allow only certain lenders to access the information. The credit bureau may charge for temporary lifts, but all states allow free, permanent removal of a security freeze.

Considerations

Security freezes do not prevent "pre-screened" credit offers, as these lenders do not have access to your full report. While the freeze prevents access for nearly all agencies with whom you do not have an existing relationship, certain government entities may pull your credit report for law enforcement purposes, or when authorized through a court order.