It is also free to unfreeze your credit if you want to use it for anything such as a new credit card or if you're buying a home. "If an identity thief or unauthorized person tries to apply for credit in your name, they will not be able to access your credit reports and the application will be denied."Īlso known as a security freeze, credit freezes were made completely free in 2018 by the Economic Growth, Regulatory Relief, and Consumer Protection Act. "If you've been the victim of a data breach or identity theft, a credit freeze is a good way to mitigate the risk of further damage to your finances and identity," says Greg Mahnken, a former credit industry analyst with Credit Card Insider. This will stop potential lenders from looking at your credit file but will also prevent anyone from fraudulently taking out a loan or opening a line of credit in your name. What is a credit freeze?Ī credit freeze prevents the three major credit bureaus - Experian, Equifax, and TransUnion - from sharing your credit report with any person or lender. One of these tools is a credit freeze, which halts any new credit-related activity. Unfortunately, bad actors know this too, which is why your identity and credit are common targets for theft.įortunately, you have a few tools in your credit toolbox you can deploy against would-be identity thieves. Your credit history and credit score dictate many of the major milestones in your life, from renting an apartment to buying a house. See Insider's list of the best credit monitoring services ».Unlike an identity theft report, you have to individually contact each of the three major credit bureaus - Experian, Equifax, and TransUnion - to freeze your credit.A credit freeze, also called a security freeze, is a free way to stop activity on your credit report if you suspect your identity was stolen.
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