Freezing your credit is one of the best ways to protect yourself from fraud and identity theft. In the past, consumers had to pay each time they placed or removed a credit freeze. But since 2018, anyone in the United States can freeze or unfreeze their credit for free at all three major credit bureaus — Experian, Equifax and TransUnion.
Your Kids’ Credit May Be at Risk
Because their credit profile is a clean slate, kids can be prime targets for identity theft. You can protect your kids’ personal information by freezing their credit for free, as long as they’re under the age of 16. You can also request a free credit freeze for someone else if you are their legal guardian or conservator, or if you have a valid power of attorney. To learn more about child identity theft, check out this information from the Federal Trade Commission.
How a Credit Freeze Works
When identity thieves steal your personal information, they can use it to open loans, credit cards and financial accounts in your name. If you don’t regularly check your credit report, you might not even notice the illegal activity until it’s too late.
When you freeze your credit, a restriction is placed on your credit report so that new lenders can’t access it. This helps prevent fraudsters from using stolen information to open fraudulent accounts in your name.
If you want to open a new loan or account when your credit is frozen, you’ll have to use a personal identification number (PIN) to lift the freeze and make your credit report available to new lenders. This is also called “thawing” your credit. Once you have your new loan or account, you can freeze your credit report again. Both freezing and thawing your credit are free for all three credit bureaus.
When your credit report is frozen, the financial institutions and credit card companies where you already have accounts can still can still check your credit. And credit freezes don’t freeze your credit score — they just prevent anyone from opening loans or other accounts — so you’ll have to continue making your payments on time to maintain a good score.
If your credit is frozen, you can still check your own credit report without having to thaw it first. You can check your credit score every 12 months for free with all three of the major credit bureaus.
Freezing and Thawing Your Credit
Each time you freeze or unfreeze your credit, you must contact each of the three credit bureaus — Experian, Equifax and TransUnion — separately. U.S. PIRG, a consumer advocacy group, recommends that you also contact the National Consumer Telecom & Utilities Exchange. They’re the credit reporting firm used by utility and telecom companies (for example, your power company or cell phone and cable providers) to check your credit when you open a new account with them.
After your initial freeze request, each credit reporting agency gives you a PIN to use when you want to freeze or thaw your credit report in the future. Make sure you keep track of all your PINs and store them in a safe place.
When you request a freeze online or by phone, the credit bureau is required to activate the freeze within one business day. If the request is made by mail, the freeze must be activated three business days after your request is received.
If you want to shop for a car or apply for a new credit card, make sure you contact each credit bureau to unfreeze your credit report several days in advance to make sure the lender can see it.
Contacting the Credit Bureaus
You can use the following contact information to freeze or thaw your credit report with each credit bureau:
Experian
888-397-3742Equifax
800-685-1111TransUnion
888-909-8872
TransUnion also has a free mobile app, myTransUnion, for conveniently freezing or thawing your credit report.National Consumer Telecom & Utilities Exchange
866-349-5355
Credit Freezes vs. Fraud Alerts
A fraud alert is a free service that will notify you when there is suspicious activity on your credit report. It allows you to open a new loan or line of credit without having to contact the credit bureaus to lift a freeze. However, it doesn’t restrict your credit report, so lenders can still access it. So, theoretically, identity thieves can still try to use your information to open fraudulent accounts, but with a fraud alert, you might find out about it sooner.
Fraud alerts stay in place for one year after you request one. Placing a request for a fraud alert with one credit bureau automatically enrolls you in fraud alerts at the others, so you don’t have to make separate requests for each credit bureau. A fraud alert can be convenient if you know you’ll need access to your credit report in the near future to open a new loan or account. Just be aware that it doesn’t offer the same comprehensive level of protection as a credit freeze.
Credit Freezes vs. Credit Locks
Some credit bureaus also offer a credit lock, which is not to be confused with a credit freeze. Credit locks are similar to credit freezes, but they allow you to instantly manage your credit freezes through a mobile app. To fully protect yourself, you’ll have to lock your report with all three bureaus. Credit locks are marketed as a more convenient alternative to credit freezes, but they often require a fee.
Credit freezes offer protection that is backed and guaranteed by U.S. law, while a credit lock is simply an agreement between you and the credit bureau. Strong legal protection and a $0 price tag make credit freezes a better option for many consumers. But some people prefer the convenience of a credit lock and are willing to pay extra for that.
Beware of Other Types of Fraud
A credit freeze will protect you against identity theft, but it won’t protect you from all types of fraud. It’s still possible for someone to steal your existing credit card number and use it for fraudulent purchases, or impersonate you online to fraudulently claim your Social Security, checking or savings funds. If you decide to take advantage of free credit freezes, make sure that you also monitor your financial statements, Social Security account and credit report for suspicious activity.
For more information, please visit our Fraud Protection Center.