If the wrong person gets a hold of your Social Security number and other personal information, they could open credit cards and loans under your name without you even knowing it. To help combat that, here’s how to freeze your credit report and when this may be a good option.
What is a credit freeze?
A credit freeze, also known as a security freeze, prevents access to your credit score and report. That means lenders can’t access your information, so they will deny any applications under your name. In other words, you won’t be able to take out any new credit while the freeze is in place. Keep in mind you can remove it whenever you want and setting up a credit freeze is free.
Why do people freeze their credit?
People usually freeze their credit to protect themselves from identity theft. If someone gets hold of your SSN, address, or other personal information, they could try opening accounts under your name. You might not catch the problem until they’ve racked up a bunch of debt under your name.
While you could eventually dispute the fraudulent accounts, it’s a lot more time and effort versus preventing problems in the first place through a freeze.
How to freeze your credit at all 3 credit bureaus
You have a credit report and score from 3 credit bureaus: Equifax, Experian, and TransUnion. Some lenders check all 3, while others only use one. To fully protect yourself, you need to freeze your credit at all 3 bureaus. Fortunately, the process is similar, quick, and easy at each one.
How to freeze your credit at Equifax
- If you haven’t already, create a myEquifax account on the Equifax website.
- Once you’ve logged in, navigate to the Security Freeze section of your account. You can place a freeze on your credit in one step.
- You can also call Equifax at 888-298-0045. You’ll need to verify your identity using information from your credit report.
- If you’d prefer to manage your credit freeze through the mail, you can download Equifax’s Security Freeze Request Form on their website and mail it to:
Equifax Information Services LLC
PO Box 105788
Atlanta, Georgia 30348-5788
How to freeze your credit at Experian
- If you don’t have one already, set up a free online Experian account. Once you’ve logged in, go to the Freeze Credit section and select Freeze.
- You can freeze your credit over the phone by calling Experian’s customer service at 888-397-3742.
- You can freeze your credit by mail, but the process will take longer. You’ll need to send a written request to Experian providing your name, Social Security number (SSN), addresses for the last 2 years, date of birth, a copy of a government ID like your driver’s license, and a copy of a bank statement or utility bill. Send this information to:
Experian Security Freeze
PO Box 9554
Allen, TX 75013
How to freeze your credit at TransUnion
- If you haven’t already, open a free TransUnion Service Center account. Once you’re set up, select Credit Freeze, and then select Add Freeze. You’ll need to create and confirm a PIN to secure your freeze.
- Freeze your credit over the phone by calling the TransUnion Support Center at 800-916-8800. You’ll need to verify your identity using your SSN, mailing address, and date of birth.
- You can mail a written request plus copies of 2 forms of ID, such as your Social Security card, driver’s license, and a utility bill to:
TransUnion
PO Box 160
Woodlyn, PA 19094
Advantages of credit freezes
Strong protection against identity theft
A credit freeze is one of the best ways to prevent identity theft. Even if someone steals your personal information, they can’t open new credit cards and loans under your name. This can help you avoid becoming the victim of many types of fraud.
Peace of mind
Even if you’re careful, you might stress about whether your information leaked or something slipped past you. Rather than frequently checking your credit report, you can set up a freeze. That way, you know you’re protected against this type of fraud.
Prevent impulsive debt and spending
When you have a credit freeze, you can’t open a credit card or loan on the spot. You’ll need to take time and unlock everything first. Given how many stores, airlines, and other businesses promote credit cards, it’s easy to feel tempted to sign up for a new one–and that can lead to more debt. With a freeze, controlling spending and managing credit responsibly is easier.
Disadvantages of credit freezes
Extra steps to apply for new loans and credit cards
Before you apply for new loans and credit cards, you must remove the credit freeze. And while this takes a few minutes online, you must go through the process for each bureau. Plus, the unfreeze isn’t always instant so that could be a hassle, especially if you plan on applying frequently for new credit.
It doesn’t protect against all fraud
While a credit freeze stops thieves from creating new accounts under your name, they could still steal access to existing accounts. For example, a thief could acquire your credit card info through the internet for a shopping spree. You’re still vulnerable to other scams, such as someone filing a fake tax return under your name. Be careful not to develop a false sense of security with the freeze in place.
How long does a credit freeze last?
A credit freeze lasts as long as you want it to. There’s no maximum or minimum time limit or deadline. If you choose to freeze your credit, it will remain frozen until you tell the credit bureaus otherwise. You could unfreeze it the very next day, or wait years.
Who can access a frozen credit report?
A frozen credit report still allows a few parties to check it, even without your permission. Here are some common examples:
- Your current creditors and lenders
- Debt collectors
- Marketers who want to send credit and insurance offers to you
- Certain government agencies and courts
- Employers can check a stripped-down version of your report with your permission
- In addition, you can still check your credit reports with a freeze in place.
Can you apply for a credit card or loan when your credit is frozen?
In most cases, you can’t successfully apply for a credit card, mortgage, or other loan when your credit is frozen. Most creditors want to check your credit report and score as part of the application. When your credit is frozen, creditors cannot access this information. As a result, they deny your application even if you would have qualified otherwise. It’s important to remember that you should remove the freeze before applying to help your chances of getting approved for the loan or credit card.
You could possibly qualify for some loans and credit cards that are approved based on your income and bank balance rather than your credit, but these options may offer less than favorable terms, so make sure you understand how they work.
How do you freeze a child’s credit?
To freeze the credit of a child 16 or younger, contact the rating agencies by mail. You’ll need to fill out a form and send documentation verifying your identity and relationship with the child, such as their birth certificate showing you as the parent or a court order making you their guardian. The child can remove the freeze once they turn 18.
When should you freeze your credit?
You may consider freezing your credit if:
- You’re at a heightened identity theft risk. For example, you lost information to a data breach, or your driver’s license was stolen.
- You’re about to leave for a long international trip and don’t want to actively monitor your accounts. That way, you know you’re protected while you’re gone.
- You don’t plan on taking out any new loans or credit cards for at least several months and want peace of mind about your credit.
How to unfreeze your credit
Unfreezing your credit is typically quick and easy. If you set up an online account, log in and go to the credit freeze section. With one click, you unlock your credit at each bureau. The process is typically instant. You could also unfreeze your credit by phone or mail.
Since unfreezing is simple, it’s one more motivation to freeze your credit for extra identity protection.