How to freeze your credit—and when to consider it
If a scammer gains access to your personal information, they could open fraudulent credit accounts in your name—borrowing money or opening credit cards, for example. One swift way to prevent that: Freeze your credit and halt scammers in their tracks.
Putting a freeze on your credit is a powerful way to deter criminals from committing identity theft and fraud. Even if a hacker obtains personal data like your Social Security number, having a security freeze in place with all three credit bureaus helps stop anyone from opening an account in your name without your permission.
Key Points
- A credit freeze prevents hackers from opening new credit accounts in your name (such as a loan, credit card, or line of credit).
- You can freeze your credit online, via phone, or through the mail with all three main credit bureaus. It’s free, and won’t impact your credit score.
- You can unfreeze your credit temporarily or permanently, but you’ll need to plan ahead.
How a credit freeze protects you
Freezing your credit is relatively easy to do, free of charge, and it won’t harm your credit history at all. (Unfreezing your credit can be time-consuming, but more on that below.) Here’s how a credit freeze helps protect you:
- When a scammer steals your personal data, they impersonate you and apply for credit in your name with various businesses.
- On the basis of the fraudulent application, the bank or merchant then checks “your” credit history with the three main credit bureaus.
- With a security credit freeze in place, a red light is triggered in the credit approval process, stopping creditors from viewing your credit history—and preventing the approval of any new accounts.
- Without a freeze, if the scammer’s attempt succeeds, they can get a loan, card, credit line, or other account—in your name.
Details about your credit freeze
You decide when to place a credit freeze and when to lift it. If you’re not in the market for a loan or a credit card, you can leave a freeze in place for as long as you like.
You can still use all your current accounts as you normally would. A credit freeze only affects new accounts.
When you need access to your credit—for a car loan, say, or to rent an apartment—you can unfreeze the account at no charge and set up the new, legitimate account. Just remember to thaw your credit before you try to open a new account.
You can lift a freeze temporarily or permanently. A temporary thaw can allow businesses to check your credit within a set window of time before the credit automatically re-freezes. Just be sure to select an interval that allows the bank or other institution enough time.
Again, a freeze has no impact on your credit history or report.
How to freeze your credit reports
Setting up a credit freeze is relatively simple:
- Contact the credit bureaus. You’ll need to reach out to each of the three primary credit bureaus: Equifax, Experian, and TransUnion. The quickest way is to call their toll-free numbers or request the freeze online. They will also accept freeze requests via mail. Either way, it doesn’t cost anything to freeze or unfreeze your account.
- Prove that you’re you. Each credit bureau has its own process, but you’ll need to submit your Social Security number, address, and other proof of identity (e.g., a utility bill) in order to set up the freeze. You’ll typically need to create a PIN, which you’ll also need to unfreeze your credit later.
- Protect your family members, too. You can create a credit freeze for a minor or an incapacitated individual, but these typically require more rigorous proof of identity (e.g., a birth certificate).
In all cases, keep your passwords and PINs where you can find them later when you need to unfreeze your credit.
What is a credit lock?
A credit lock sounds similar to a credit freeze, but it’s a different service.
According to federal law, the credit bureaus must offer free credit freezes to consumers. A credit lock also blocks access to your credit report, but it’s a service offered by the credit bureaus and may come with a fee.
How to unfreeze your credit reports
When you need access to your credit report for your own purposes, you can lift the freeze, either permanently or temporarily. Remember to plan ahead so you don’t run into any roadblocks in setting up a new cell phone, for example.
Thawing your credit requires similar steps and information. To unfreeze your credit online or by phone, you’ll need your password and/or PIN to access your online profile with each bureau. These are the fastest ways to unfreeze your credit, taking about an hour.
Unfreezing a credit report via mail takes more time—three days from the time the credit bureau receives your request.
Pros and cons of freezing your credit
As with any financial strategy, it pays to weigh the advantages and disadvantages of using a credit freeze.
Pros:
- Peace of mind. With your credit frozen, it’s almost impossible for a hacker to access your credit report and open an account.
- Flexibility. You can leave a freeze in place for as long as you like, and unfreeze it as needed. There’s no charge, and it won’t impact your credit history or report.
- Security for loved ones. It’s also possible to set up a credit freeze for a minor child or an adult (perhaps a senior who may not be able to manage it on their own).
Cons:
- Hassle. Freezing your credit—and lifting the freeze before you need it—means planning ahead, accessing the right PINs and passwords, and resetting the freeze if necessary. Still, these steps are a minor headache versus handling an identity theft event.
- Unpleasant surprises. When your credit is frozen, it’s off limits to everyone, including you. If you forget it’s frozen and apply for an account, you may be rejected when, in fact, your credit history is fine.
- Overconfidence. Freezing your credit doesn’t protect you from every type of fraud, and it should be only one tool in your identity theft protection kit. It’s still smart to check your reports yourself.
You’re entitled to a free credit report!
Did you know that you can see your own credit report once each year for free? This program—mandated by federal law—offers information from all three credit agencies. Choose from one of three ways to access your report:
- Online: Visit AnnualCreditReport.com
- Phone: Call (877) 322-8228
- Mail: Fill out and submit an Annual Credit Report Request Form.
Check your credit report at least annually to ensure it’s accurate. Errors can drag down your credit score.
The bottom line
With incidents of identity theft on the rise, and hackers getting more sophisticated at every turn, it makes sense to consider all the options when it comes to protecting yourself, your identity, and your credit history. Although it does take some effort to implement a credit freeze, it’s a light lift compared with the financial problems that can result from identity theft and fraud.
It’s also important to remember that if you decide to freeze your credit, you’re in the driver’s seat. You can lift the freeze, permanently or temporarily, at any time, at no charge, and with no impact on your credit history or score. A credit lock offers similar protections, but may come with a fee, and may not be as effective.