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| What is a credit freeze? Is it right for me? |
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Last Updated
17th of September, 2009
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A security freeze (or credit freeze) gives consumers the option to "freeze" or lock access to their credit file against anyone trying to open up a new account or to get new credit in their name. When a security freeze is in place at all three major credit bureaus, an identity thief cannot open a new account because the potential creditor will not be able to check the credit file.
When the consumer is applying for credit, he or she can lift the freeze temporarily using a PIN so legitimate applications for credit or services can be processed. Currently, 47 states and the District of Columbia have joined the legislative surge against identity theft, enacting laws that empower consumers to freeze their files.
A security freeze shouldn't be enacted without careful consideration. Before ordering a security freeze, first make sure no legitimate parties are going require timely access to your credit (these could include cell phone companies, utility providers, or landlords, to name a few examples).
Additionally, if any change is made to your personal information during a security freeze, e.g., if your address changes, the companies that would normally report this to the credit bureaus will not be able to do this—you are responsible for contacting the credit bureau and conveying any changes to your personal information. So, if you are in immediate need of credit, e.g., you are about to apply for a mortgage or need to apply for a car loan, first determine whether you will be able to handle delays resulting from the security freeze.
For additional information on security freezes, visit the Consumer Union's Guide to Security Freeze Protection.
Learn more about identity theft and how to protect yourself.
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