September 24, 2024

How to Freeze Your Credit & Secure Your Finances

how to freeze your credit
If you see suspicious activity in your credit history, you can protect yourself by putting a freeze on your credit report. This action stops lenders from issuing any accounts in your name without your permission and safeguards you from potential credit fraud.
To help you use this process to keep your credit status secure, here’s everything you need to know about when and how to freeze credit.

What is a credit freeze?

A credit freeze blocks lenders, creditors, and any other outside parties from checking your credit report or approving new credit accounts that would go on your report. So, if someone happens to steal your private information, like your Social Security number (SSN), a credit freeze prevents the thief from opening new credit accounts in your name with that information.
There are multiple credit bureaus that collect and maintain the information that goes into building your credit report, but the three major credit bureaus are Equifax, Experian, and TransUnion. Because these bureaus work independently, there’s no “umbrella” freeze option. Instead, you must freeze your credit report with each bureau separately.

How do I freeze my credit with all three bureaus?

Here’s how you can initiate a credit freeze with each of the three major credit bureaus:
Always make sure you’re using a legitimate website or contacting the correct phone number when supplying sensitive information like your SSN or other personal details.
It’s also important to note that a credit freeze is different from a credit lock. A credit lock allows individuals to quickly and easily prevent access to their credit report, similar to a credit freeze. ut it usually costs money and offers more convenient options (like mobile app access) for temporary or permanent locking. Credit freezes, on the other hand, are free and federally regulated, meaning they offer legally enforced protection to block credit inquiries at no cost to you.

How to freeze a child's credit

Anyone could be the target of financial fraud — including children. Even if your child has no existing credit, it’s not impossible for someone to access their SSN and attempt to open credit in their name. This is why many parents choose to freeze their child’s credit report.
For children under 16, parents or guardians must provide documentation that confirms the child's identity and the guardian’s legal authority to request the freeze. This documentation may include copies of the child’s birth certificate, SSN card, and legal paperwork proving guardianship or parental rights. If the child has no existing credit, the contacted credit bureau will create a file in the child’s name to then freeze.
If you’re looking to freeze the credit of a spouse or an incapacitated person you care for who’s age 16 or older, you would follow similar steps. But you’ll also need to provide documentation like court orders or power of attorney documents.

Pros and cons of freezing your credit

The ability to freeze your credit protects your credit health and security, but the process also has its limits and can be troublesome to lift when needed. Here are some of the pros and cons to consider before putting a freeze in place.

Pros

Cons

How to unfreeze credit

Unfreezing your credit is a straightforward process that you can do online, by phone, or by mail. Here's a more detailed look at these methods:

Reasons for unfreezing your credit

While keeping your credit frozen is a great protective measure, certain circumstances might require you to lift it. Here are some reasons why you might choose to temporarily or permanently reverse a credit freeze:

Keep an eye on your credit score with EarnIn

Protecting your credit and preventing fraudsters from abusing your financial information is an important part of maintaining good credit health. If you’re looking for ways to keep tabs on your credit, EarnIn can help.
With EarnIn's Credit Monitoring tool, you can check your credit score any time for free. Get a comprehensive look into your financial standing with monthly updates on your credit score.
Download the EarnIn app today to keep a close eye on your financial health, stay proactive against potential fraud, and navigate your finances with greater confidence and security.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
1.  EarnIn is a financial technology company, not a bank. Calculated on the VantageScore 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don't be surprised if your lender uses a score that's different from your VantageScore 3.0. Learn more: https://www.experian.com/assets/consumer-information/product-sheets/vantagescore-3.pdf

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