A credit freeze is a security measure that limits access to your credit report by a potential creditor or lender. When you place a credit freeze on your accounts, no one can access your credit report without your authorization. The result is that no one can access your credit file without your consent, which helps to prevent identity theft and fraud.
What Is a Credit Freeze?
A credit freeze, or security freeze, blocks access to your credit reports, protecting against scammers’ attempts to access your credit reports and open fraudulent accounts. When someone applies for credit using your personal information, a lender or card issuer typically checks your credit before making a decision. If your credit is frozen, the potential creditor cannot see the data required to approve the application.
Why Do People Freeze Their Credit?
If you’ve been a victim of identity theft, a credit freeze may be helpful.
If you haven’t experienced identity theft or fraud, it is typically unnecessary to freeze your credit. A fraud alert could be enough if you suspect your data has been exposed. This alert requires lenders to authenticate your identity before opening a new account while also enabling you to use credit when required. However, if you’re attempting to receive immediate credit, be aware that lenders may take additional steps to verify your identity with a fraud alert in place, making it impossible to get approved in stores.
What Types of Fraud Can a Credit Freeze Protect Against?
A credit freeze can protect against different types of fraud such as identity theft, credit card fraud, loan fraud, and other fraudulent activities that require access to your credit reports. However, a credit freeze does not protect you against fraud on your existing credit card accounts–it only prevents new accounts from being fraudulently opened in your name.
Identity Theft
This occurs when someone steals your personal information to open new accounts, access your funds, or make purchases. With a credit freeze, potential creditors are unable to check your credit, and therefore cannot open new accounts using your personal information.
Credit Card Fraud
This happens when someone uses your credit card or credit information to make unauthorized purchases. A credit freeze ensures that no new credit accounts can be opened without your consent, thus making it impossible for someone to fraudulently use your credit to make a purchase.
Loan Fraud
This can occur when an individual uses your information to apply for a loan in your name. With a credit freeze, if someone tries to apply for a loan using your identity, the creditor will not be able to access your credit report, and therefore cannot approve the application.
How To Decide If a Credit Freeze Right For You
Before deciding to freeze your credit, there are a few important factors to consider. First, if you anticipate applying for credit in the near future, such as a mortgage or car loan, you may want to wait until after the application process is complete to freeze your credit. This is because the credit freeze can cause delays in the approval process.
Second, it’s essential to keep in mind that a credit freeze won’t protect you from all forms of identity theft. It won’t prevent someone from using your existing credit cards or other accounts fraudulently. It also won’t stop scammers from accessing your non-credit-related personal information, such as medical records or tax returns.
Overall, if you’re concerned about identity theft or fraud and are willing to bear the potential costs and inconvenience of a credit freeze, it can be an effective way to protect your credit information. However, it’s essential to weigh the potential benefits against the potential drawbacks and make an informed decision based on your personal situation and consider alternative methods of safeguarding your credit, such as a credit lock.
How To Freeze Your Credit In 4 Steps
The process of freezing your credit is pretty simple. To begin, gather all of the required information and documentation (i.e., your SSN, a government-issued ID, and proof of address), then contact each credit bureau directly (which can be done online, by phone or by mail). From there, submit your credit freeze request, and finally, confirm that your credit has been frozen.
Here’s how to freeze your credit with each of the three major credit bureaus:
- How to freeze your credit with Experian
- How to freeze your credit with Equifax
- How to freeze your credit with TransUnion
Here’s how to freeze your credit in four easy steps:
1. Gather the required information and supporting documentation
To start, you will need to gather relevant information and supporting documents. This includes your personal information, such as your name, home address, Social Security number, and date of birth. You may also need to provide supporting documentation, such as a government-issued ID (e.g., a state-issued driver’s license).
Here’s the information you will need to request a credit freeze:
- Your full name (as it appears on your credit report and government-issued ID)
- Your address
- Your Social Security Number
- Your Date of Birth
In some cases, you may also be asked to supply the following:
- A government-issued ID — This could be a passport, driver’s license or military ID
- A copy of tax documents, bank statements or utility bills
- Proof of address, such as a utility bill sent to your address
2. Contact each credit bureau
In order to freeze your credit, you need to freeze your credit with each credit bureau separately. To do so, you can contact Equifax, Experian, and TransUnion directly online, by phone, or by mail.
| Equifax | Experian | TransUnion | |
| Online | File a credit freeze online with Equifax | File a credit freeze online with Experian | File a credit freeze online with TransUnion |
| By Phone | Call: 1-866-478-0027Monday – Friday: 9:00 am to 9:00 pm (ET) Saturday and Sunday: 9:00 am to 6:00 pm (ET) | Call: 888-EXPERIAN (888-397-3742) | Call:888-909-8872 |
| By Mail | Submit your request with all documentation to: Equifax Security Freeze, P.O. Box 105788, Atlanta, GA 30348 | Submit your request with all documentation to: Experian Security Freeze, P.O. Box 9554, Allen, TX 75013 | Submit your request with all documentation to: TransUnion LLC, P.O. Box 160, Woodlyn, PA 19094 |
| Learn More | Visit Equifax | Visit Experian | Visit TransUnion |
3. Request a credit freeze
Each bureau will provide you with a unique PIN or password that you’ll need to use if you want to unfreeze your credit in the future.
4. Confirm that your credit has been frozen
Once the freeze is in place, the bureaus will send you a confirmation letter. You should keep this letter for your records. Depending on the credit bureau, you may also be able to confirm that your credit has been frozen in your online account (if you have one).
Remember to unfreeze your credit when needed. If you need to apply for credit or loan in the future, you’ll need to contact each bureau separately and provide your unique PIN or password to unfreeze your credit temporarily.
By following these steps, you can protect your credit information and reduce the risk of identity theft and fraud. However, it’s important to remember that a credit freeze won’t protect you from all forms of identity theft and may come with fees and potential inconvenience. Therefore, it’s important to weigh your options carefully and make an informed decision based on your personal situation.
How to Unfreeze Your Credit
If you’ve decided to freeze your credit for security reasons but are now looking to apply for credit or take out a loan, you’ll need to unfreeze your credit reports. Fortunately, unfreezing your credit is a relatively simple process, and you can do it quickly and easily online, over the phone, or by mail.
To unfreeze your credit, you’ll need to contact each of the three major credit bureaus: Equifax, Experian, and TransUnion. If you’ve already set up an account with each bureau, you can typically unfreeze your credit online by logging in and selecting the “unfreeze” option. If you prefer to speak to a representative, you can call each bureau’s toll-free number and follow the prompts to unfreeze your credit.
When unfreezing your credit, you’ll need to provide certain information, such as your name, address, Social Security number, and date of birth. You may also need to provide a unique PIN or password that you created when you initially froze your credit. Be sure to have this information handy when you contact each bureau.
It’s worth noting that a credit freeze can remain in place until you remove it, so if you don’t plan on applying for credit or taking out a loan in the near future, you may not need to unfreeze your credit at all. However, if you do need to do so, be sure to allow enough time for the unfreeze to take effect. While the bureaus are required to lift a freeze within one hour of your request online or by phone, it can take up to three business days if you request the unfreeze by mail.
Bottom Line
A credit freeze can be an effective tool to guard against identity theft and fraud, but it’s essential to understand the pros and cons of this security measure before taking action. A credit freeze can block access to your credit reports, stopping potential creditors from seeing your information when you apply for a loan.
On the other hand, freezing your credit may cause delays in getting approved, come with fees and won’t protect you from all forms of identity theft and fraud. Ultimately, it’s important to weigh the potential benefits against the potential drawbacks and make an informed decision based on your personal situation.
Frequently Asked Questions (FAQs)
How do you know if your credit is frozen?
If your credit is frozen, you will be unable to open a new account. You can also confirm that your credit is frozen by contacting each of the three major credit bureaus directly and requesting a copy of your credit report. If the freeze is in place, you won’t be able to access it until you provide your unique PIN or password.
Can you freeze your credit for free?
It is free to freeze your credit with all three of the major credit bureaus (Experian, Equifax and TransUnion).
What happens when you freeze your credit?
When you freeze your credit, it blocks access to your credit reports, preventing a potential creditor or lender from viewing them. This can help protect against identity theft and fraud. It’s important to keep in mind that freezing your credit doesn’t stop scammers from accessing your existing accounts or other non-credit-related personal information.
Does a credit freeze affect your credit score?
No, a credit freeze does not affect your credit score. A credit freeze does, however, protect you against certain types of identity theft and fraud. Learn more about what impacts your FICO credit score.
Does a credit freeze prevent a soft inquiry?
No, a credit freeze does not prevent a soft inquiry. A soft inquiry is when a lender or creditor checks your credit for promotional offers (such as pre-approved credit cards). A credit freeze will only stop lenders from accessing your full report when you apply for new credit or a loan. Learn more about soft inquiries and hard inquiries.
What’s the difference between a credit freeze and a credit lock?
A credit freeze and a credit lock are similar in that they both restrict access to your credit report. However, they differ in terms of cost and convenience. A credit freeze requires you to contact each of the three major credit bureaus separately, while a credit lock typically allows you to manage all of your accounts with one provider. In addition, credit freezes may come with fees, while credit locks are typically free.