Freeze your credit in 6 simple steps
July 15, 2021 - 5:06 am
There are times in your life when it may be necessary to freeze your credit—that is, prevent your credit report from being viewed by lenders and any service providers. This is not something you want to do at any old time, but in such circumstances as identity theft or fraud, according to Experian, because no one can open a new credit account in your name if your credit is frozen.
Related: 4 people whose identities were stolen — and how they got through it
Read: 23% of Americans were victims of credit card fraud last year: How to protect yourself
If you find yourself in this position, don’t worry — it’s easy to do, so long as you come prepared. And, of course, don’t forget to lift the freeze before you apply for anything in the future that requires a credit check.
File with all 3 credit bureaus
You’ll need to file a credit freeze request with all three major credit bureaus: Equifax, Experian and TransUnion, for your freeze to actually work. Be prepared to answer questions about your identity before contacting them.
Learn: 7 ways to protect yourself from credit card fraud at gas stations
Have important documents on hand
You will be asked to provide key documents to verify your identity when you initiate a credit freeze, including: Social Security number, photo ID and proof of residence (either a rental agreement, utility bill or some other document with your address on it). Be sure to have these on hand and easy to access.
Learn more: The biggest money scandals of the last 100 years
Save PINS/passwords
Each credit agency may assign you a PIN or password to access your account, which you’ll also need when you’re ready to lift the freeze, according to Kiplinger. Don’t try to rely upon your memory for these — put them somewhere safe and secure.
Stay safe overseas: 23 tourist scams to watch out for when abroad
It costs you nothing
While it may be a hassle to go to the trouble to freeze your credit, at least it costs you nothing. Doing so is free to anyone.
Celebrity scams: How these A-list celebrities got scammed out of money
Adjust your expectations
The most important reason to set up a credit freeze is to prevent credit fraud in your name — which is when someone opens a credit account in your name without your permission, according to Experian. Yet a freeze is not a foolproof method to prevent fraud. You can still be a victim of identity theft. Examples include: someone using your credit card number to make unauthorized purchases, or someone stealing your Social Security number to file fraudulent tax returns or health insurance claims.
Sports scams: The biggest NCAA money scandals of all time
Set up fraud alerts
If you simply fear that someone might initiate fraud against you, but it hasn’t happened yet, you don’t need to freeze your credit — setting up fraud alerts will most likely be effective enough, according to the Federal Trade Commission. And this is a good idea regardless of whether you have already experienced fraud.
More From GoBankingRates
Follow along with 31 days of living richer
What it means to live a truly rich life and how to achieve it
Big personal goals that you should put your money toward
This article originally appeared on GOBankingRates.com: How to freeze your credit in 6 simple steps