If you're concerned about identity theft or fraud, you may have heard of freezing your credit. But what is a credit freeze and how does it work? In this blog post, we'll explore the basics of a credit freeze and why it might be a good idea for you.
A credit freeze is an important tool in protecting yourself from identity theft and fraud. It restricts access to your credit report, which means that potential creditors will not be able to access your information without your permission. This makes it more difficult for an identity thief to open new lines of credit in your name.
When you freeze your credit, you will receive a unique PIN (Personal Identification Number) that must be used when unfreezing or temporarily lifting the freeze. You can also set up alerts so that you are notified if someone attempts to access your information.
Pros of Freezing Your Credit:
- Preventing unauthorized access to accounts and personal information
- Reducing the risk of identity theft
- Achieving peace of mind and more secure financial standings.
Cons of Freezing Your Credit:
- Delays in opening new credit cards or accounts
- Difficulty obtaining loans without unfreezing your credit report
It's important to note that freezing your credit does not affect existing accounts or prevent you from using them as normal. It also won't impact your ability to get copies of your own credit report or score.
Freezing your personal credit is free and easy to do with all three major bureaus: Equifax, Experian, and TransUnion. To freeze each bureau's report separately, contact them directly by phone or online using the links provided below.
