What is a credit freeze?
It's a tool that lets you restrict access to your credit report, which in turn makes it more difficult
for identity thieves to open new accounts in your name. That’s because most
creditors need to see your credit report before they approve a new account. If
they can’t see your file, they my not extend the credit.
Does a credit freeze affect my credit score?
No. A
credit freeze does not affect your credit score.
A credit freeze also does not:
- Prevent you from getting your free annual credit report
- Keep you from opening a new account, applying for a job, renting an apartment, or buying insurance. But if you’re doing any of these, you’ll need to lift the freeze temporarily, either for a specific time or for a specific party, say, a potential landlord or employer. The cost and lead times to lift a freeze vary, so it’s best to check with the credit reporting company in advance.
- Prevent a thief from making charges to your existing accounts. You still need to monitor all bank, credit card and insurance statements for fraudulent transactions.
Can anyone see my credit report if it is frozen?
Certain entities still will have access to it.
- Your report can be released to your existing creditors or to debt collectors acting on their behalf.
- Government agencies may have access in response to a court or administrative order, a subpoena, or a search warrant.
How do I place a freeze on my credit reports?
Contact each of the nationwide credit reporting companies:
- Equifax- 1-800-349-9960
- Experian- 1-88-397-3742
- TransUnion- 1-888-909-8872
You’ll need to supply your name, address, date of birth,
Social Security number and other personal information. Fees vary based on where
you live, but commonly range from $5 to $10.
After receiving your freeze request, each credit reporting company
will send you a confirmation letter containing a unique PIN (personal
identification number) or password. Keep the PIN or password in a safe place.
You will need it if you choose to lift the freeze.
In a few
states, credit freezes expire after seven years. In the vast majority of states,
a freeze remains in place until you ask the credit reporting company ust lift a
freeze no later than three business days after getting your request. The cost
to lift a freeze varies by state.
If you opt for a temporary lift because you are applying for
credit or a job, and you can find out which credit reporting company the
business will contact for a your file, you can save money by lifting the freeze
only at that particularly company.
By Federal Trade Commission
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