Security Freeze on Credit Reports
Protecting your credit from fraudulent use is important for a successful credit building plan to achieve better credit scores. With the continued rise in identity theft, many consumers are utilizing the Security Freeze as a way to limit access to their credit files.
WHAT IS A SECURITY FREEZE
A Security Freeze placed with all three credit bureaus is designed to block access to or “freeze” a consumer’s credit file to someone trying to open a new credit account in the consumer’s name. Theoretically, the company that is considering issuing credit or a loan will not be able to check the credit report, thereby stopping the lending or approval process.
A Security Freeze placed with all three credit bureaus is designed to block access to or “freeze” a consumer’s credit file to someone trying to open a new credit account in the consumer’s name. Theoretically, the company that is considering issuing credit or a loan will not be able to check the credit report, thereby stopping the lending or approval process.
CONSUMER ACCESS UNDER THE FREEZE
While the Security Freeze is in place, a consumer can still apply for credit by opening or temporarily “un-freezing” their credit file with their pre-selected PIN. This assures that even an identity thief with a correct name, date of birth and social security number cannot gain access to the consumer’s credit file without knowing the PIN.
While the Security Freeze is in place, a consumer can still apply for credit by opening or temporarily “un-freezing” their credit file with their pre-selected PIN. This assures that even an identity thief with a correct name, date of birth and social security number cannot gain access to the consumer’s credit file without knowing the PIN.
HOW TO PLACE A SECURITY FREEZE
The Consumers Union has details on how to place a Security Freeze on credit reports for each state. They also have great information to help determine if a Freeze is a good choice for you. There is usually a fee to the consumer to place and to remove a Security Freeze. Some states provide the Security Freeze at no charge to victims of identity theft.
The Consumers Union has details on how to place a Security Freeze on credit reports for each state. They also have great information to help determine if a Freeze is a good choice for you. There is usually a fee to the consumer to place and to remove a Security Freeze. Some states provide the Security Freeze at no charge to victims of identity theft.
NOTE: A Security Freeze is NOT the same as a Fraud Alert. The Freeze can be placed to prevent id theft; the fraud alert is typically placed after fraudulent use has occurred.
If you have questions about your credit reports, you can post your question on this site by leaving a comment. You can also contact us directly for one-on-one consulting services for your personal credit building plan.