How To Freeze Credit Without Spending Money And Time

12 Min Read | Mar xvi, 2022

Identity theft is the worst. And sadly, it's happening more and more these days. Now, it's no longer a matter ofifsomeone will effort to steal your personal data—it'southward a matter ofwhen. In fact, 47% of Americans were victims of financial identity theft in 2020.¹That'due south not okay! But at that place's a fashion you can protect your info and lower the risk of strangers taking out credit in your name—by freezing your credit.

Just like Mr. Freeze fromBatman, credit freezing tin can stop your enemies (aka fraudsters) in their tracks and go along them from doing more damage. Here'south what you need to know about how to freeze your credit so you can protect yourself and your loved ones from identity thieves.

What Is a Credit Freeze?

A credit freeze is a way to lower your risk of identity theft past locking others out of your credit report—retrieve of it as storing your valuables in a safe. Virtually creditors (the people who loan you money) check your credit before letting you practise things similar buy a house, lease a car, or take out a loan. By freezing your credit, you can end creditors from approving new accounts—which helps prevent random people from opening up new lines of credit in your name (without you knowing).

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Of course, if your credit is frozen, that meansyou lot won't be able to open a new account either (like to take out a mortgage). But you tin always unfreeze your credit—or temporarily lift the freeze—whenever yous desire.

What happens when you freeze your credit?

Hither'due south the deal: Freezing your credit is a smart move. Not only does it proceed someone's greedy paws off your personal info, but it also gives you the control of who can run your credit report and when. Merely while freezing your credit is a good thing, at that place are some things you should know before diving in headfirst:

Freezing your credit doesnot guarantee a creditor won't still give a credit menu to someone pretending to be you. There'south always a adventure they won't look upwardly your credit first. But freezing your creditdoes lower the risk.
Someone can withal endeavor to hack into your existing accounts and get on a shopping spree with your difficult-earned coin. But if someone does steal your identity, credit freezing can help end them from opening new accounts and causing fifty-fifty more trouble.
Freezing your credit doesnotimpact your credit score—merely if you've got whatever errors on your credit report, y'all'll want to fix those earlier you decide to freeze your credit.
You—and your current creditors, debt collectors and some government agencies (like child support)—will still be able to see your credit report. Information technology merely won't be available for any new lenders to see.
A credit freeze doesnot go on credit card companies and other businesses from trying to sell you preapproved credit offers based on your current credit info. (Junk mail is the worst!)

How to Freeze Your Credit

Freezing your credit is a lot like doing the dishes. It's not hard—it only takes some time . . . simply non every bit much time as it would take to untangle the web of a stolen identity.

All you have to do is contact the three major credit bureaus (Experian, Equifax and TransUnion) and let them know yous want to freeze your credit. You can practice this through their websites, past mail, or by calling them directly. If yous prefer doing your concern over the phone, you tin can contact each of the credit bureaus at the numbers below:

Experian: 888-397‑3742

Equifax: 888-378-4329

TransUnion: 888-909-8872

Make sure you have your personal data handy when placing your credit freeze (similar your social security number, nativity date and current address). They might ask you for proof of address, your driver's license or a passport depending on how you lot decide to identify your freeze.

Side by side, you'll set up a PIN that allows you to freeze and unfreeze your credit study whenever you want. Then, even if someone has your social security number or other personal information, they tin't touch your frozen credit without that Pin. (So you actually, really don't want to lose it!)

It doesn't have long for the freeze to boot in—credit bureaus have to place it within one business organization twenty-four hour period if you lot request it online or by phone, and within 3 business days if yous mailed in your request.

What Does It Cost?

Absolutely goose egg! Yous used to have to pay $3–12 to each credit agency whenever you wanted to freeze or unfreeze your credit. But after the cracking Equifax data alienation of 2017 (which leaked the personal data of 147 million Americans), the regime decided to make information technology easier and cheaper to protect your personal information.²

So, now you can freeze and unfreeze your credit for free! And don't forget that you can also request a gratis credit report from each of the 3 major credit bureaus once a year, fifty-fifty if your credit is frozen.

When Should Y'all Freeze Your Credit?

Personal Data Breaches

Nosotros hear a lot about data breaches (think Target or Capital Ane), but what exactly are they? A data alienation is when someone gets their hands on private or sensitive information—like credit card or social security numbers—without permission. And since so many of united states store important info similar that online, there's a higher hazard people will be able to steal it.

Now, freezing your credit can't preclude someone from stealing your information, but it can stop them from using it to open upnew lines of credit—and leasing a brand-new Tesla in your name. Ouch! So, if yous know there'southward been a breach of your personal account or a alienation in a visitor that stores your data, put your shields up with a credit freeze.

Identity Theft

Identity theft is when someone uses your personal information (from a data breach or even by digging through your mail) to get into your accounts, open up new accounts, or make purchases usingyour money. Unfortunately, identity theft is pretty common these days. Information technology tin be an accented nightmare trying to clean up the mess someone else makes while pretending to be yous.

That'due south why it's and so of import to defend yourself from identity theft by doing things like checking your cybersecurity and changing your passwords. But the good news is that freezing your credit tin proceed identity thieves from going out and opening accounts in your name from hither to Timbuktu.

Protect Your Child'south Credit

Sadly, fifty-fifty your kids aren't safe from identity theft. But did y'all know yous tin freeze your child'southward credit to stop people from opening accounts in their name also? Since you have to exist at to the lowest degree eighteen years sometime to employ credit, a credit bureau will have to open up a credit file for your kid in order to freeze it.

Information technology'south super simple—all y'all have to do is fill out a kid credit freeze asking form and post it to each of the credit bureaus, forth with copies of important documents (like a birth document, social security card, etc.). If your kid is 16 or older, they tin can do this themselves. You can also check your kid'due south credit online for free to make sure they aren't already a victim of identity theft.

How to Unfreeze Your Credit

To unfreeze your credit, all yous have to practise is let the credit bureaus know you want to elevator the freeze. Call up that PIN nosotros talked about earlier? You'll need to give that number to the folks at the credit agencies to unfreeze your report. There'south even an pick to lift the freeze temporarily if you lot want to utilise for something that needs a credit check.

Keep in mind that it could take anywhere from several seconds to several days for your credit written report to "thaw" so creditors tin can see information technology again. Yep, it's kind of a pain to keep contacting each credit bureau every time someone needs to see your credit report, but it's less of a pain than having someone try to take out a mortgage in your name.

Pro tip: If a potential employer needs your credit written report considering you're applying for a job, y'all can ever ask them which credit bureau they'll check with so y'all don't have to contact all three.

Pros and Cons of Freezing Your Credit

Now that we've covered the nuts, here's a await at some of the pros and cons of freezing your credit:

Pros of Freezing Your Credit:

Identity thieves can't open new credit accounts in your name.
There are usually fewer cases of fraud if someone steals your identity.
It's free to freeze or unfreeze your credit.
It doesn't affect your credit score.
Yous can withal see your credit report.

Cons of Freezing Your Credit:

It doesn't terminate someone from stealing your personal information or hacking into an existing business relationship.
Y'all accept to elevator the freeze if you desire to open a new line of credit.
It could ho-hum down any applications that require a credit check.
You lot have to keep track of a Pivot number.

Now that we've covered the credit freezing basics, permit'south take a await at some other ways to protect your identity.

Credit Freeze vs Credit Lock: What's the Difference?

One time the government put thecostless in creditfreeze, credit bureaus chop-chop realized they weren't going to make money every time someone decided to freeze or unfreeze their credit report. Then, they came up with creditlocks. These are basically the same matter equally credit freezes—except they're usually not gratis.

The only benefit to a credit lock is that you can immediately freeze and unfreeze your credit with the touch of a push on your phone. Merely credit locks offering less legal protection because they're not controlled by state police force similar credit freezes are. Even if they seem more convenient, credit locks are but a way for credit bureaus to try and make back the money they were getting before the 2017 information breach—and so y'all'd be ameliorate off sticking with a credit freeze.

Other Ways to Defend Against Identity Theft

Credit Monitoring

Even if you lot have a freeze on your credit and your cybersecurity seems to be as secure every bit Fort Knox, you still demand to cheque your credit and banking concern statements regularly to make certain no one's trying to suspension in.

Credit monitoring services are swell because they keep an eye on your credit for you and alert you whatever time they find something fishy going on. Merely while credit monitoring is important, it only makes y'all enlightened of a problem—it doesn't stop it from happening. So, y'all'll want to make sure y'all have other defenses in place to gainsay identity theft.

Fraud Alerts

Let's say a credit monitoring service spots some strange activity on 1 of your accounts and you think you lot might be a victim of identity theft. Or perhaps you're worried it might happen considering your information is at risk (similar if someone stole important documents or cards from you). If that happens, you can immediately place a fraud alert. A fraud alert is similar to a credit freeze because it helps go along people from opening up new accounts in your name.

The main difference is that creditors can still meet your credit report—they simply accept to verify your identity commencement. And when y'all contact one of the credit bureaus about the fraud alert, they'll permit the other two know (so you don't take to).

The downside is that at that place's no penalty for the credit bureau if they choose to ignore a fraud alert and give a creditor your information anyhow without confirming your identity offset. (Seriously?) Plus, fraud alerts only last for up to a year, and so they aren't going to be as constructive as a credit freeze. Only information technology doesn't hurt to place a fraud alert as extra protection if you lot think someone has your personal info.

Identity Theft Protection

Identity theft can rob you of more than than just money or good credit. Law reports, phone calls, going through bank statements—it can cost you countless hours and sleepless nights. But imagine having someone on your side who will do the work for yous.

Identity theft protection is 1 of the best things you lot can get to save yourself the time and stress of trying to fight off cyber thieves past yourself. With Zander Insurance, you get a Certified Recovery Specialist who volition contact creditors on your behalf. They have the fourth dimension to explain what happened and provide the necessary info so yous can get your identity—and your life—back. It's also much of a risk to not take it—get identity theft protection today!

Cut Credit From Your Life for Good

Let's face it: Our world loves the "almighty credit score." But have you ever thought about what a credit score really means? Information technology's merely a tool that measures how you handle debt. Yeah. That's information technology. And when you think about it that fashion, it changes things. Get this: The credit industry wants to keep you in debt.

Doesn't that make you mad? Listen: Nosotros're not shy about how we feel virtually it. Debt is dumb (with a capital D), and you lot don't need information technology to live your life. In fact, y'all tin can live life without credit—or a credit score for that affair!

And one of the best ways to lower the take chances of someone hacking into your credit accounts is by swearing off credit in the beginning place. When yous don't borrow money, you tin can freeze your credit report—and let it stay frozen! (We're talkingdeep freeze here, folks.) Merely quitting credit does more than only help protect yous from identity theft. It frees you lot up to really commencement winning with money!

Audio too proficient to exist true? Start a free trial of Ramsey+ and accept control of your finances! You'll learn how to ditch credit for good and so yous can focus on paying off your debt, saving for emergencies, and edifice wealth for the hereafter.

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