The pros and cons of freezing your credit
When you freeze your credit, you’re limiting lenders and others from looking at your credit reports. If you suspect identity theft or have recently experienced it, freezing your credit may be an action you should consider taking to secure your credit. A freeze stops lenders and other service providers from viewing your credit report. You can lift the freeze if you plan to apply for new credit. It’s also a good idea to sign up for fraud alerts from an online identity monitoring service like LifeLock, Experian, and others.
Remember, if you do freeze your credit, this prevents lenders from viewing your credit report, so you can’t get a new line of credit until you lift the freeze. It’s merely a preventative measure, howbeit, a good one. If an identity thief steals your social security number or other personal information, they cannot open a new line of credit using your info because the freeze will prevent a lender from viewing the credit report and proceeding with processing a loan. So, that means no new credit accounts can be fraudulently opened in your name.
The Process is Free
In order for it to be effective, you’ll need to fill out and file a credit freeze request with the three credit bureaus: Experian, TransUnion, and Equifax. After answering a few questions, you’ll need to provide your social security number, proof of residence (bill), and a copy of your driver’s license (or other photo ID). Some bureaus give you a PIN number that you can use to freeze and unfreeze your credit report for future purposes.
It’s not a difficult process as you can see, and it’s free. No fees are required for freezing or unfreezing your credit.
It’s Not a Cure-All
A credit freeze will prevent someone from opening a credit line in your name. This is a great preventative measure to protect your identity; however, it’s not a cure-all. A credit report does not protect you completely from identity theft. Someone can steal your credit card or credit card number and charge away unauthorized purchases at Walmart or wherever they like without your permission. Unfortunately, that’s only prevented by using a credit security service like LifeLock or by keeping a close eye on your credit card account charges and credit reports. If someone steals your social security number, they can still file a fraudulent tax return or health insurance claim in your name regardless if you have a credit freeze.
