Guide to Credit Freeze

Every time I pay attention to the news, it seems there is an announcement about another major data breach. I often get questions from friends, family, and others about what one should do. My best advice: freeze your credit!

What I have discovered is that many folks don’t understand exactly what this means, what it doesn’t mean, or how it works.

What a Credit Freeze Is

Very simply, a credit freeze prevents anyone from accessing your credit report from any of the three U.S. credit reporting agencies (CRAs): Experian, TransUnion, and Equifax.

When you want to apply for credit — a credit card, personal loan, auto loan, mortgage, etc. — the lender will pull a copy of your credit report from one (or more) of the CRAs. A credit freeze prevents them from pulling your credit report.

Additionally, a credit freeze prevents a cyber criminal who has obtained your personal information (name, address, date of birth, Social Security Number) from opening new credit accounts in your name.

When you legitimately want to apply for credit, you can temporarily lift the freeze using your online account at each CRA’s website. All three CRAs allow you to do a temporary unfreeze for a defined period of time — a day, a week, etc.

What a Credit Freeze Is Not

A credit freeze does not affect any accounts you currently have open. Your credit cards, bank accounts, home equity line of credit, and similar accounts continue to work exactly as they always have. You can make charges, payments, and conduct transactions normally. You simply cannot open any new accounts, even with the same company.

How Do I Freeze and Unfreeze My Credit?

Freezing and unfreezing your credit is a straightforward process, and it is completely free — federal law requires all three credit bureaus to provide this service at no charge.

The easiest way is online via each CRA’s website. You’ll create an account with each bureau and use that account to manage your freeze going forward.

Tip: When applying for credit, ask the lender which CRAs they use, then only unfreeze your credit at that specific agency. It saves time.

Experian

• Go to the Experian Security Freeze Center
• Create an account or log in
• Select “Add a security freeze”
• Follow the on-screen steps. You’ll need your name, address, and Social Security Number.

TransUnion

• Go to the TransUnion Credit Freeze page
• Create an account with a username and strong password
• Select the option to freeze your credit
• Use this same account to manage future freezes and unfreezes — consider storing the login in a password manager

Equifax

• Go to the Equifax Security Freeze page
• Create a myEquifax account if you don’t already have one
• Select “Add a Security Freeze”
• Log into your account any time you need to lift or reinstate the freeze

I hope this is helpful and that you’ll take the opportunity to freeze your credit. And don’t forget about your spouse and children — the CRAs offer options to freeze your minor child’s credit as well, which you shouldn’t overlook. Children are common targets of identity theft precisely because no one is watching their credit.