Credit Freezes

What Is a Credit Freeze?

A credit freeze is a way to restrict access to your credit reports and prevent fraudsters from using your personal information to open financial accounts or make transactions that require a credit check in your name. You are legally entitled to request a credit freeze, also known as a security freeze, with each credit bureau.

Below, you can learn more about how a credit freeze works, including how much it costs and alternative measures for protecting your financial life.

How Does a Credit Freeze Work?

A credit freeze works by stopping most people and companies from accessing your credit report until you remove the freeze temporarily or permanently. That makes it extremely difficult for fraudsters to take out any new credit in your name. It’s a very simple process, too!

You have to freeze your credit with each credit bureau individually.

You are only able to request a credit freeze with the three major credit bureaus: Transunion, Equifax and Experian. You can request to freeze your credit report either online, by phone or by mail. Requesting a freeze online will likely be the easiest and quickest method, but you will need to create an online account.

You need to verify your identity.

You will have to provide personal information such as your name, address, SSN, date of birth and phone number so the bureaus can confirm your identity.

Most third parties cannot access your frozen credit report.

Once the bureaus process your request, they will block most outside access to your credit reports, with some notable exceptions, such as if you want to check your own credit report. The government, your current creditors, employers, landlords and collection agencies can also check your frozen report in certain scenarios. If anyone outside of the few fringe situations, even regular lenders, tries to gain access to your credit while it is frozen, they will not be able to.

Your credit freeze will be indefinite.

Your credit freeze will usually last indefinitely until you make a change to it. Depending on the credit bureau, you may be able to schedule a set end date for it when you submit the freeze request. You can also request for the credit bureaus to permanently remove your credit freeze. Then, you can always put another one in place in the future.

A credit freeze does not impact your credit or existing loans or lines of credit.

While your credit is frozen, you can still use your existing credit cards. In addition, unlike a hard inquiry, a credit freeze does not impact your credit score at all.

You can temporarily lift your credit to apply for loans or credit cards.

You can request to temporarily lift your credit freeze so you can apply for a loan or line of credit, and then have it go back in place.

It is also important to note that only you can request your own credit freeze. Minors and protected consumers in many states are the exception to this rule.

How to Freeze Your Credit

To freeze your credit, you must contact the three major credit bureaus (Equifax, TransUnion and Experian) separately. You can reach them individually via their websites, by mail or by phone. Each of them will ask for your full name, address, date of birth, Social Security number and other personal information as a way to verify your identity, so make sure you have that information on hand. You can see the different ways you can request a credit freeze from each of the credit bureaus below.

How to Request a Credit Freeze From Each Credit Bureau

How Much Does It Cost to Freeze Your Credit?

Freezing your credit reports is free. Thanks to the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, adding and lifting freezes must be free for all Americans.

It wasn’t always that way, though. The credit bureaus used to charge fees for adding and lifting credit freezes based on your state of residence, your age and whether you had already been a victim of identity theft.

It’s also worth noting that by law the credit bureaus have to honor any request for a credit freeze within one business day if you make the request online or by phone, and within three business days after receiving a request by mail.

Should You Freeze Your Credit?

It’s a good idea to freeze your credit if you are not going to apply for any new loans or lines of credit in the immediate future and you want to protect yourself against identity theft and fraud. Since credit freezes are free and easy to remove, there’s really no downside to placing them for extra protection.

That said, you should definitely freeze your credit if you are a victim of fraud or identity theft, or you notice something that you don’t recognize on your credit report. In this case, it’s imperative that you take steps to safeguard against having unauthorized accounts opened in your name.

Pros of Freezing Your Credit

• Protection: A credit freeze is an effective and easy way to protect yourself from identity theft. The consequences of having your identity stolen are stressful, time-consuming, and at least temporarily costly to your wallet and credit score.
• Control: Not only can you place and lift a credit freeze whenever you want, but you’ll also have the peace of mind of knowing exactly who is accessing your credit report and when.
• Speed: Credit bureaus must place a credit freeze within one business day if you request it online or by phone, and within three days of receiving a request by mail. They must lift a credit freeze within one hour if you request it online or by phone, and within three days of receiving a request by mail. 

Cons of Freezing Your Credit 

• Can’t Apply for New Credit: If you forget to lift a credit freeze, it can delay approval for a credit card or loan and may result in your application being rejected. The lender won’t be able to pull your credit to finish reviewing your application until the credit freeze has been lifted.
• Existing Credit Vulnerability: Although a credit freeze stops new lines of credit from being added without your approval, it does not protect you from fraud on your existing accounts. Therefore, you should still continue to closely monitor your current credit card and bank statements for any signs of fraudulent purchases.

Credit Lock vs. Freeze

A credit lock and a credit freeze are similar, as both block unauthorized access to your credit report and prevent fraudulent accounts from being opened. However, a credit freeze may take 1 to 3 business days and is only offered through the credit bureaus, while a credit lock is instantaneous and available from other companies.

Learn more about the differences between a credit lock and a credit freeze.

Credit Freezes for Minors and Protected Consumers

In all states, parents and legal guardians can opt to freeze the credit reports of their respective minors and protected consumers. It is vital to note that many minors lack credit reports to begin with, and therefore cannot have their credit reports frozen. However, if they do have existing credit reports, parents and legal guardians can file credit freezes by contacting the three major credit bureaus. The exact documentation you will need may differ slightly by credit bureau.

What You Need to Freeze a Minor or Protected Consumer’s Credit

1. A written request to freeze the minor or protected consumer’s credit.
2. Your information and copies of documents verifying your identity.
   • Full name, including any suffix (e.g. Jr., Sr., etc.)
   • Full address
   • Proof of your identity, such as a copy of your Social Security card, birth certificate, driver's license, or other government-issued identification
   • Proof of your address, such as a copy of a utility bill, bank statement or insurance statement
3. Information and copies of documents verifying the identity of the protected consumer or minor and proof that you can act on their behalf.
   • Full name, including any suffix (e.g. Jr., Sr., etc.)
   • Full address
   • Copy of a Social Security card and birth certificate
   • Proof of your guardianship of the individual, such as a birth certificate, adoption certificate, court order, power of attorney, foster care certification, etc.

Credit Freeze Alternatives

Although freezing your credit is one of the best ways to preclude identity fraud, there are still several other alternatives you can pursue:

Credit Monitoring

This is a service that can cost anywhere from $0 to $40 per month. It notifies you of any suspicious activity on your credit report. This can include too many hard inquiries, new accounts being opened, changes to existing accounts, address changes and new public records being released.

It’s worth noting that a free WalletHub account gives you access to 24/7 monitoring of your TransUnion credit report for free. Upgrading to WalletHub Premium adds enhanced protection such as identity restoration, dark web monitoring and $1 million in identity theft insurance. WalletHub Premium+ goes even further by monitoring for signs of identity theft in criminal activity, international sanctions, and loans that don’t get reported to the credit bureaus, plus new bank account applications, changes to your existing bank accounts and more.

Fraud Alerts

If you suspect you are a victim of fraud, you can place a fraud alert on your credit file. This will notify anyone requesting your file (such as lenders, creditors, landlords, banks, etc.) that you think you are at risk. They should then take steps to further verify that you have authorized the request to ensure your protection.

Self-Monitoring

Consumers now have access to free weekly credit reports from TransUnion, Equifax and Experian at annualcreditreport.com. It is important to track your credit history, so make sure to take advantage of this option.

Other Cautionary Measures

There are a variety of other precautionary measures that you can take on a daily basis in order to protect your personal finances, such as shredding your financial statements, locking your mailbox and exercising caution online.