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Maria was checking her email one night when she noticed a message from her bank: the bank had been hacked a few months prior and the hackers stole everyone’s passwords and personal information. In the email, the bank recommended requesting a credit report and freezing one’s credit. Maria had heard about credit freezes, but she didn’t understand why they were helpful or how to go about freezing her credit. After the relief of receiving her credit report and confirming that nothing was amiss, Maria’s mind went back to credit freezes: Do I still need to freeze my credit even though my credit report is clean? How does a credit freeze affect my ability to get credit?
Does this story sound familiar? Have you ever received an email from your bank, credit card company, or another organization disclosing hacks or warning about scams? Do you need a credit freeze, and, are you wondering about the process?
What is a credit freeze?
Credit freezes, also called security freezes, block access to your credit report. For example, if a hacker stole your personal information and went to open fraudulent accounts in your name, the creditor would not be able to access the required information on your credit report to approve the application. A credit freeze can prevent identity theft, even if a criminal has your birthdate and social security number.
Do I need a credit freeze?
The short answer is yes. Scams and hacking are bountiful in our technology-based society. The Federal Trade Commission has estimated that consumers lost over $10 billion to scams in 2023 and that 300,000 people reported their identity stolen in the third quarter of 2023 alone. These numbers will continue to rise as technology becomes more sophisticated. Credit freezes are a preventative measure; even if your credit report is clean now, implementing a credit freeze before your information is stolen can protect your identity, and, ultimately, your assets.
How do I freeze my credit?
Freezing your credit at all three bureaus (Equifax, Experian, and TransUnion) can easily done with a quick phone call or online and do not affect your credit score. A step-by-step guide for freezing your credit online at each bureau can be accessed here.
- Equifax: Call the automated line at 800-349-9960 or customer care at 888-298-0045
- Experian: Call 888‑397‑3742
- TransUnion: Call 800-916-8800
Credit freezes can be inconvenient in certain scenarios, such as when you apply for a credit card or buy a car because you’ll need to unfreeze your credit first (using the same numbers as above). The inconvenience is a small price to pay for peace of mind.
