What is a Credit Freeze?
A credit freeze, also known as a security freeze, is a crucial measure you can take to protect yourself against identity theft and financial fraud. This process restricts access to your credit reports, essentially blocking scammers from opening fraudulent accounts in your name.
When someone applies for credit, whether it’s a loan or a credit card, the lender or issuer typically checks your credit history to assess your creditworthiness. If you have a credit freeze in place, the potential creditor is unable to view the data required to approve the application, effectively preventing unauthorized accounts from being opened.
Freezing your credit is a free service and won’t negatively impact your credit score.
Why Freeze Your Credit?
In today’s digital landscape, data breaches and identity theft are significant concerns. Even if someone has access to essential personal information, such as your birthdate and Social Security number, a credit freeze can prevent them from opening new accounts or accessing your existing credit lines. Given recent news about potential data vulnerabilities, like the Department of Government Efficiency’s access to sensitive government data, taking proactive steps to protect your credit is wise.
How to Freeze Your Credit
To freeze your credit, you must contact each of the three major credit bureaus individually:
- Equifax
- Manage your Equifax credit freeze: Online or call 888-298-0045. You can also send mail to: Equifax Information Services LLC, P.O. Box 105788, Atlanta, GA 30348-5788
- Experian
- Manage your Experian credit freeze: Online or call 888-397-3742. Mail requests to: Experian Security Freeze, P.O. Box 9554, Allen, TX 75013
- TransUnion
- Manage your TransUnion credit freeze: Online or call 800-916-8800. Send mail to: TransUnion, P.O. Box 160, Woodlyn, PA 19094
The quickest way to initiate a credit freeze is through the online portals offered by each credit bureau. You can also place a freeze over the phone, but it is important to know that all requests must be fulfilled within one business day if done online or by phone by the Consumer Financial Protection Bureau.
If you submit your request by mail, the bureaus have three business days to process it. You can also request your credit report in Spanish from the three major credit bureaus.
Required Information for a Credit Freeze
Before initiating a credit freeze, gather all the necessary documents. While the specific requirements may vary slightly between the three credit bureaus, you will generally need to provide the following:
- Social Security number
- Date of birth
- Address
Depending on how you initiate the freeze (online, phone, or mail), you might also need to provide documentation to verify your identity and address. This could include:
- A copy of your passport, driver’s license, or military ID
- Copies of tax documents, bank statements, or utility bills
If you are completing the freeze over the phone, be prepared to answer some authentication questions.
How Long Does a Credit Freeze Last?
A credit freeze remains in effect until you decide to lift it. You can temporarily unfreeze (“thaw”) your credit when you apply for new credit or if a creditor needs to access your credit report.
When Should You Freeze Your Credit?
If you are not actively seeking a new credit card or loan, freezing your credit is a sensible precaution. NerdWallet recommends that all consumers freeze their credit as a proactive measure to protect themselves. Freezing and thawing your credit are free, regardless of how often you do it.
If you believe your personal data has been compromised, such as in a data breach, it is crucial to initiate a credit freeze as soon as possible, particularly if your Social Security number may have been exposed.
Who Can Access Your Frozen Credit Reports?
A credit freeze limits access to your credit reports to most parties, but there are exceptions:
- You can access your own credit reports.
- Your current creditors and debt collectors will still have access.
- Marketers can see your credit reports for the purpose of sending offers.
- Government or child support agencies may have access in certain circumstances.
- Employers or potential employers can request a credit check.
Credit Freeze vs. Credit Lock
Both a credit freeze and a credit lock restrict access to your credit reports, but there are significant differences. Credit freezes are mandated by federal law and are free, whereas credit locks are voluntary products offered by credit bureaus that may involve a fee. Credit locks might offer convenience, such as being opened and closed via a smartphone app, but they may provide fewer legal protections compared to a credit freeze.
How to Unfreeze Your Credit
To temporarily lift a credit freeze, go to the appropriate credit bureau’s website and log in to the account you used to freeze your credit. Within the account dashboard, there should be an option to unfreeze your credit with that bureau. You might also be able to unfreeze your credit by phone or mail if you can provide verifying information. The fastest way to unfreeze your credit is online or by phone, and the bureau must process those requests within an hour. Unfreezing your credit by mail can take up to three business days.
Reasons to Unfreeze Your Credit
While keeping your credit frozen is generally a good idea, you may need to temporarily unfreeze your credit in several situations, such as when applying for a new credit line or loan. Your credit report will be pulled by a lender to assess your creditworthiness. You might also need to unfreeze your credit to use a Buy Now, Pay Later (BNPL) service.
