Credit Freezes

When you place a credit freeze, you are keeping any potential creditors from gaining access to your credit report. 

What a Credit Freeze Will and Won’t Do for You

 Placing a credit freeze on your credit report will provide increased security against becoming a victim of identity theft. However, some people become confused by what a credit freeze will and won’t do.

• Credit freezes will prevent any potential creditors from receiving your credit report. This means that no new account can be opened using your identity during the time the freeze is in place
• Any companies you are already doing business with will still have access to your credit report. An example of this is a cell phone or internet service you are receiving from a company.
• With a credit freeze in place, you will still receive your free yearly credit report, or purchase a copy of your credit report.
• Companies that you have not signed up for will still be able to offer pre-screened credit offers to you.
• If an identity theft already has access to an account that you already have open, a credit freeze will not stop them from using it.

Fees for Placing a Credit Freeze

 The fee required to set up a credit freeze varies in amount depending on which state you live in. For most states, setting up a credit freeze for somebody who has been a victim of identity theft is free. Someone who is placing the credit freeze for additional security is charged a small fee, usually ten dollars. This fee is for each credit reporting agency. After all three have been contacted about the credit freeze, the final price is thirty dollars.

Temporarily Lifting a Credit Freeze

 If you are applying to open an account with a business that needs access to your credit report, you have the option to temporarily lift a credit freeze. In most cases, the credit reporting companies will charge you a fee to temporarily lift the credit freeze. This cost varies depending on which state you live in, but usually will cost the same as the freeze creation fee. To lift the freeze, you will also need the Personal Identification Number (PIN) that the credit company sent you when you created the freeze. The credit reporting companies have up to 72 hours to lift the freeze.