 |
Why You Should Freeze Your Credit—and How to Do It
Yes
What Is a Credit Freeze?
A credit freeze—also called a security freeze—limits access to your credit report.
When lenders review applications for new credit cards, loans, or financing, they typically check your credit report. If your credit is frozen, they generally cannot access that information until you temporarily lift the freeze.
As a result, criminals who obtain your personal information may have difficulty opening new accounts in your name.
What a Credit Freeze Does
- Helps prevent new fraudulent accounts
- Restricts access to your credit report
- Adds an extra layer of identity theft protection
- Can be temporarily removed when needed
What a Credit Freeze Does Not Do
- Stop fraud on existing accounts
- Prevent phishing scams
- Eliminate the need to monitor your accounts
- Affect your credit score
Why Should You Freeze Your Credit?
1. Identity Theft Is Increasing
Data breaches, phishing attacks, and online scams continue to expose personal information such as:
- Social Security numbers
- Birth dates
- Addresses
- Account credentials
A credit freeze helps prevent thieves from using that information to open new accounts.
2. It's Free
Federal law allows consumers to place, lift, and remove credit freezes at no cost. There are no monthly fees and no ongoing charges to maintain your freeze.
3. It Doesn't Hurt Your Credit Score
Many people worry that freezing their credit will lower their score. The good news is that a credit freeze has no impact on your credit score or existing accounts.
4. You Can Unfreeze It Anytime
Need to apply for a car loan, mortgage, or credit card? You can temporarily lift your freeze and then reactivate it once the application process is complete.
Who Should Consider Freezing Their Credit?
A credit freeze can benefit almost anyone, but it's especially valuable if:
You've experienced identity theft
- Your information was exposed in a data breach
- You rarely apply for new credit
- You want stronger fraud protection
- You're helping protect an aging parent or dependent
Many financial experts now recommend keeping your credit frozen unless you're actively applying for credit.
How to Freeze Your Credit
To fully protect yourself, you'll need to place a freeze with each of the three major credit bureaus:
- Equifax - Visit Equifax online and create an account to place a freeze.
- Experian - Use Experian's security freeze portal to activate your freeze.
- TransUnion - Create a TransUnion account and request a security freeze.
The process typically takes only a few minutes per bureau. You'll need information such as:
- Full legal name
- Social Security number
- Date of birth
- Current address
How to Temporarily Unfreeze Your Credit
If you're applying for financing, you'll need to temporarily lift the freeze. You can:
- Lift the freeze at one bureau
- Lift the freeze at all bureaus
- Schedule the freeze to automatically return after a specific period
Many consumers unfreeze their credit for just a few days while a lender completes the application process.
Credit Freeze vs. Credit Monitoring
Many people confuse these services, but they serve different purposes.
Credit Freeze - Prevents new accounts from being opened by restricting access to your credit report.
Credit Monitoring - Alerts you when changes appear on your credit report.
Think of it this way:
- A credit freeze helps stop fraud before it starts.
- Credit monitoring helps you detect fraud after activity occurs.
For maximum protection, many consumers use both.
Additional Ways to Protect Yourself
A credit freeze is effective, but it should be part of a broader security strategy.
- Enable Multifactor Authentication - Add an extra layer of protection to your banking and financial accounts.
- Monitor Account Activity - Review transactions regularly and sign up for account alerts.
- Use Strong Passwords - Create unique passwords for financial accounts and avoid reusing credentials.
- Be Alert for Scams - Never provide personal information through unsolicited emails, phone calls, or text messages.
A Simple Step That Can Make a Big Difference
Identity theft can be stressful, expensive, and time-consuming to resolve. Fortunately, a credit freeze is one of the easiest and most effective ways to reduce your risk.
It costs nothing, won't affect your credit score, and can help prevent criminals from opening new accounts in your name.
If you're looking for greater peace of mind, freezing your credit may be one of the smartest financial security steps you can take today.
Frequently Asked Questions
Does freezing my credit affect my credit score?
No. A credit freeze has no impact on your credit score.
Is a credit freeze free?
Yes. Federal law requires credit bureaus to provide credit freezes at no cost.
Can I still use my credit cards if my credit is frozen?
Yes. Existing accounts continue to work normally.
How long does a credit freeze last?
A freeze remains in place until you remove it or temporarily lift it.
Do I need to freeze my credit at all three bureaus?
Yes. For the strongest protection, place a freeze with Equifax, Experian, and TransUnion.
« Return to "Consumer Resources"