Identity theft continues to be one of the fastest-growing forms of financial fraud. One of the easiest and most effective ways to protect yourself is by placing a credit freeze with each of the three major credit bureaus. A credit freeze helps prevent criminals from opening new credit accounts in your name, even if they have your Social Security number or other personal information.
What is a Credit Freeze?
A credit freeze is a security measure that restricts access to your credit report and eliminates the ability for someone else to be able to open new credit accounts using your personal information.
A Credit Freeze:
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Prevents new lenders from accessing your credit report
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Makes it much harder for criminals to open new credit accounts in your name
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Does NOT affect your existing bank accounts or credit cards
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Remains in place until you choose to temporarily lift of permanently remove it
What a Credit Freeze Does Not Do
A credit freeze does not:
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Prevent fraud on your existing credit cards or bank accounts
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Stop someone from filing a fraudulent tax return
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Prevent medical identity theft
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Replace good password security or fraud monitoring
Think of it as locking the front door - it won't protect every possible entry point, but it does help to prevent one of the most common and financially damaging forms of identity theft.
Are There Any Downsides?
The primary inconvenience is that you'll need to temporarily lift the freeze whenever you apply for new credit, such as:
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A mortgage
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Auto loan
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Credit card
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Personal loan
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Some apartment rentals
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Occasionally a new cell phone plan or utility account
Fortunately, lifting the freeze online usually takes only a few minutes.
Can I Temporarily Unfreeze My Credit?
Yes.
You remain in complete control of your credit freeze. If you're applying for new credit, you can temporarily lift the freeze online through each credit bureau's website.
After your lender has completed their credit check, you can immediately freeze your credit again after the legitimate credit inquiry has happened to reduce your exposure to future fraud.
Does Freezing My Credit Affect My Credit Score?
No.
A credit freeze has no negative impact on your credit score, any existing credit cards or loans, your ability to use current accounts, or payment history. The only thing it limits is access to your credit report for new lenders. The main point for applying a freeze is to help protect your score.
Does It Cost Anything?
No.
Federal law requires all three credit bureaus to allow consumers to freeze and unfreeze their credit free of charge.
While visiting their websites, you may see offers or advertisements for paid credit monitoring or identity protection services. These services are optional as you do not need to purchase them to freeze your credit.
How To Freeze Your Credit
To fully protect yourself, you'll need to place a freeze with all three major credit bureaus: Equifax, Experian, and TransUnion.
Create a free online account with each bureau and follow the instructions to place a security freeze. We recommend doing this directly through each bureau’s official websites rather than through a paid third-party or calling the bureaus, as online accounts make it much easier to temporarily place or lift your freeze whenever needed.
What Else Can I Do To Protect My Credit?
A credit freeze is one of the best defenses against identity theft, but it's even more effective when combined with other good security habits.
Consider:
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Enabling free credit monitoring through your bank or credit card company
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Reviewing your credit reports regularly
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Using strong, unique passwords and multi-factor authentication
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Being cautious of phishing emails, text messages, and phone scams
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Considering an identity protection service such as Aura, Identity Guard, or LifeLock if you want additional monitoring
Our Recommendation
For most people, keeping your credit frozen at all times is a simple, free, and highly effective way to reduce the risk of identity theft. You can temporarily lift the freeze whenever you need to apply for new credit and then refreeze it afterward.
If you have questions or need help getting started, please contact your advisor. We're happy to help point you in the right direction.
FAQs:
Do I need to freeze my spouse's credit separately?
Yes. Each adult must freeze their own credit individually.
Should I freeze my children's credit?
Yes, if they have a credit file. Child identity theft is more common than many people realize. Parents can request a freeze for minors.
How long does a freeze last?
Until you remove it. It does not expire.
How quickly can I unfreeze my credit?
In most cases, freezes can be lifted online within minutes, though it's wise to allow extra time before applying for credit.