Protecting Your Credit: How to Freeze and Unfreeze Your Credit Reports

TLDR: Freeze your credit and unfreeze when opening new credit accounts (scroll down to see how).

I am steadily looking for ways to improve security posture and find new ways to stay protected. Attackers only have to be right once to cause chaos in our lives, so we have to take on a very, very defensive posture.

One way to do this is to freeze our credit. Doing so makes it much more difficult for identity thieves to quickly use your personal information (which is unfortunately readily available on the dark web after data breaches, we see you AT&T), open new lines of credit, cash out, and disappear. This leaves you holding the bag and in most cases you might not even know you have been a victim for months. We all know how important our credit is, so taking these steps can help secure your financial wellbeing.

Why is frozen not the default? Credit reporting agencies make lots of money selling your information and don’t want lose that revenue, so the onus is on US to take the initiative. Even more ironically, credit reporting agencies used to charge to freeze and unfreeze until they were forced to stop charging, SMH.

How to Freeze and Unfreeze Your Credit Reports

Keeping your credit safe is crucial in safeguarding your financial well-being. One effective measure to protect yourself from identity theft is by freezing and unfreezing your credit reports. Understanding this process is key to knowing when it's necessary.

What Is a Credit Freeze?

A credit freeze, also known as a security freeze, allows you to limit access to your credit reports. By doing so, you can deter identity thieves from opening new lines of credit in your name, especially if it requires a thorough review of your credit reports.

It's important to note that freezing your credit doesn't mean your credit history becomes entirely inaccessible. Companies with whom you already have a credit relationship can still access your credit history, as can government agencies with legal authorization.

How Does a Credit Freeze Work?

When you freeze your credit with the major credit bureaus—Equifax, Experian, and TransUnion—you're essentially telling them to restrict access to your credit file. However, there are exceptions to who can access your file even with a freeze in place.

Thanks to a change in the law in 2018, freezing and unfreezing your credit is now free of charge. This process does not affect your credit score and doesn't hinder your access to your free annual credit reports. However, you will need to lift the freeze if you plan to apply for new credit.

How to Freeze Your Credit

Freezing your credit is a straightforward process. You can contact each of the major credit bureaus through their websites or by phone. Here are the links and phone numbers for Equifax, Experian, and TransUnion:

• Equifax: Freeze Your Credit | 800-685-1111

• Experian: Freeze Your Credit | 888-397-3742

• TransUnion: Freeze Your Credit | 888-909-8872

You'll need to provide personal information such as your name, address, date of birth, and Social Security number to each bureau. Experian and TransUnion also require you to set a unique PIN for freezing and unfreezing your credit.

How to Unfreeze Your Credit

If you decide to lift the freeze, you can do so by contacting the credit bureaus individually. With TransUnion and Experian, you'll need to provide the PIN you previously set up. The bureaus are required to lift the freeze within specific time frames.

Pros and Cons of Freezing Your Credit Report

Consider the following pros and cons before deciding to freeze your credit:

Pros:

• Enhances security by deterring identity theft and fraud

• Freezing and unfreezing your credit is now free

• Easy and quick online process

• Does not affect your credit score

Cons:

• Does not entirely block access to your credit file

• You'll need to lift the freeze before applying for new loans

Credit Freeze vs. Fraud Alert

Another option to protect your credit is by placing a fraud alert on your credit profile. This alert lasts for one year or seven years if it's extended. While it doesn't lock your credit reports completely, it requires creditors to verify your identity before granting new credit.

In summary, freezing your credit adds an extra layer of security against identity theft. However, if you prefer an alternative, a fraud alert might be suitable for you. Ultimately, the choice depends on your individual circumstances and preferences.

Jonathan Wilson