How to Freeze Your Credit
What is a credit freeze?
A credit freeze restricts access to your credit report. If you suspect your personal information or identity was stolen, placing a credit freeze can help protect you from fraud. When you place a security freeze, creditors cannot access your credit report. This will keep them from approving any new credit account in your name, whether it is fraudulent or legitimate. To let lenders and other companies access your credit files again to create new accounts, you’ll need to lift your credit freeze permanently or temporarily.
What is a Fraud Alert?
A fraud alert is another safety measure to help protect you against identity theft. Once activated, a fraud alert encourages businesses to contact you directly to verify your identity before approving a loan or credit card application. It’s not as secure as a credit freeze. Unlike a credit freeze, you only have to contact one credit bureau to set up a fraud alert – they will contact the other two bureaus on your behalf. Fraud alerts are free and last one year, but you can renew them annually. If you have a police report showing you were a victim of identity theft, you can request an extended fraud alert, which lasts seven years. Additionally, when you place a fraud alert, you’ll automatically receive a free copy of your credit report from the three credit bureaus.
Should I freeze my credit?
Picking the best solution – credit freeze or fraud alert – depends on your specific financial situation and what level of security you want. If you are concerned about data breaches or just want to be proactive in protecting yourself, a credit freeze could be the right option.
Will a freeze affect my credit score?
It will not affect your credit score.
Can I still apply for credit if I have a freeze?
Not while your credit report is frozen. You’ll need to lift your freeze to apply for credit.
What are the advantages of freezing your credit?
- Free for everyone.
- Protection for identity theft and fraud.
- Simple, easy, and fast.
- It prevents credit bureaus from selling your data.
What are the disadvantages of freezing your credit?
- Contacting each credit bureau can see like a hassle.
- A freeze protects you from criminals trying to open new credit lines or loans under your name, but fraudulent activity can still occur on existing accounts. If someone has access to your credit card information or Social Security number, they can still commit credit fraud. For maximum protection, you must closely monitor your accounts.
- Insurance rates might increase. Some insurance companies base their rates on your credit score. Contact your insurance agent to explain the situation if you receive a higher rate due to a credit freeze.
- Limitations with mySocialSecurity account. The federal government lets you set up an online account called mySocialSecurity – for tracking earnings and future benefits. However, you’ll need to temporarily lift your credit freeze to set it up.
Does a credit freeze affect my credit card so I can’t use it to make purchases?
No. A credit freeze doesn’t affect your credit card. Your credit report won’t be accessible, but that won’t affect your credit card.
Can a company I already have a relationship with view my credit report if a freeze has been placed on it?
Yes. Any company you already have an account with will still be able to access your credit report regarding the existing account, but they will not be able to use your credit report to open a new account in your name.
How long does it take for my freeze/or lifting of a freeze to go into effect when I place it online or by phone?
Adding, lifting, or removing a freeze online often happens in real time, but allow up to one hour for it to go into effect. If you add, lift or remove a freeze by phone or mail, it may take up to three business days from the date the request is received.
How to place or lift a credit freeze.
Freeze or lift the freeze on your credit report for free by contacting each of the three major credit reporting agencies. Once you’ve completed the freeze, your credit report will remain locked until you temporarily or permanently lift the freeze.
You can submit your request online, by phone, or by mail. The online option is the fastest and easiest.
Although each credit bureau might require different proof, most will request one proof of Social Security number and two proofs of your current address. All documents should reflect your current name and be unexpired. Submit only photocopies of your documents.
- Identity (Social Security card, letter from Social Security Administration, Military ID, Medicaid or Medicare card)
- Address (Driver’s license with current address, utility bill, bank statement, canceled check, pay stub, signed homeless shelter letter, Prison ID letter, stamped post office box receipt, Government-issued ID, State ID card)
How can I order my free annual credit report?
The three nationwide credit bureaus — Equifax, Experian, and TransUnion — have a centralized website, toll-free telephone number, and mailing address so you can order your free annual reports in one place. Do not contact the three credit bureaus individually. These are the only ways to order your free annual credit reports:
Visit AnnualCreditReport.com
call 1-877-322-8228, or
complete the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Only one website — AnnualCreditReport.com — is authorized to fill orders for the free annual credit reports you are entitled to by law.
ID TheftSmart
First National Bank also recommends that individuals consider subscribing to ID TheftSmart’s Credit Monitoring and ID Theft Restoration solutions. Both are an excellent value and popular among individuals who are concerned about ID Theft or have experienced a scam or fraud situation.