Worried about Identity Theft? Freezing Your Credit Might Be the Answer

Every day we hear of data breaches putting thousands or more people at risk for identity theft. The more companies that have your name, address, birthdate, and social security number, the bigger the risk. 

Millions have had their sensitive data, including Social Security Numbers, birthdates, and addresses, exposed on the Dark Web. This information can easily fall into the wrong hands and be used to open fraudulent accounts in your name. So, what can you do to protect yourself? One effective strategy is freezing your credit. You may have heard about ‘freezing your credit” and not have any idea of the pros and cons or what it actually means.

This should help answer some of those questions.

What is a Credit Freeze?

A credit freeze, also known as a security freeze, is a measure that restricts access to your credit report. When a freeze is in place, no one can open a new credit account, loan, or other financial service using your information. This is a crucial step in preventing identity theft because identity thieves often need to access your credit report to open fraudulent accounts.

One common misconception is that by freezing your credit you can no longer use your credit cards. This is not true. CREDIT CARDS ALREADY ACTIVE CAN BE USED WITH NO PROBLEMS.

How to Freeze Your Credit

Freezing your credit is a relatively simple process. You’ll need to contact each of the three major credit bureaus individually:

  • Equifax: Visit their website or contact them directly.
  • Experian: Similarly, go to their website or get in touch with them.
  • TransUnion: Reach out to them online or by phone.

You’ll likely need to create an account with each bureau. Their websites may also offer additional services, such as monitoring your online presence and removing your information from certain sites, sometimes for a fee.

Freezing your credit does not cost anything.

The Pros of Freezing Your Credit

  • Enhanced Security: The most significant advantage of freezing your credit is the added layer of security. It makes it significantly harder for identity thieves to open accounts in your name.
  • Peace of Mind: Knowing that your credit is frozen can provide peace of mind in an era of rampant data breaches.
  • No Cost: Freezing and unfreezing your credit is now free in all U.S. states.

The Cons and Considerations

  • Temporary Inconvenience: When you need to apply for new credit, a loan, or any other service that requires a credit check, you’ll need to temporarily “thaw” or unfreeze your credit. This involves contacting each bureau again and using a PIN code you received when you froze your credit.
  • Remembering PINs: Those PIN codes are important! If you lose or forget them, you’ll have to go through additional steps to unfreeze your credit. So, store those PINs in a safe and secure place.
  • Not a Catch-All: A credit freeze doesn’t protect you from all types of identity theft. For example, it won’t prevent someone from stealing your existing credit card information or filing a fraudulent tax return in your name.

Who Should Consider Freezing Their Credit?

Anyone concerned about identity theft can benefit from freezing their credit. However, it’s especially important if:

  • You’ve been a victim of identity theft in the past.
  • Your personal information has been exposed in a data breach.
  • You simply want to take proactive steps to protect yourself.