FREEZING YOUR CREDIT REPORTSPrevent Identity Theft and Control Access to Your Credit

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A credit report security freeze is a service offered by each of the three credit reporting agencies—Experian, Equifax, and TransUnion—to help you protect your credit from unauthorized use.

RESTRICT ACCESS TO YOUR CREDIT

The freeze is a locking service that allows you to restrict access to your credit reports for purposes of obtaining new credit.Once in place, the credit report security freeze prevents creditors from opening new accounts in your name without your permission.

Credit reporting agencies generally charge a fee of between $3.00 to $10.00 each time you place, lift, or remove a security freeze on your credit reports, though in some states the fees are higher or may be waived for victims of identity theft.

To place a credit report security freeze, simply instruct the three credit reporting agencies—Experian, Equifax, and TransUnion—to restrict access to your credit reports to only companies you select or to no one at all if a complete lock down is desired.

PLACING A SECURITY FREEZEEquifax Security Freeze

P.O. Box 105788Atlanta, GA 30348

Telephone: 888-298-0045https://www.freeze.equifax.com/

Experian Security FreezeP.O. Box 9554

Allen, TX 75013Telephone: 888-397-3742

https://www.experian.com/freeze/center.html

Trans Union Security FreezeP.O. Box 6790

Fullerton, CA 92834-6790Telephone: 888-909-8872

http://www.transunion.com/securityfreeze

The credit reporting agencies must place the security freeze within five business days of your request.The credit reporting agencies must also send you written confirmation within ten business days. Confirmation must include a unique personal identification number or password you can use to release your credit information to selected companies.

Once placed, a credit security freeze prevents creditors from opening new accounts in your name but also allows you to selectively enable access to specific companies. With a credit report security freeze in place, you maintain full control over access to your credit reports.

YOU CONTROL ACCESS

To temporary unlock a credit report security freeze just call or write to the credit bureaus. The freeze must be temporarily removed within three business days if requested by mail or within 15 minutes during regular business hours if requested by telephone or electronically.

If you need to apply for new credit you may request a temporary lift of the security freeze for a specific credit grantor or for a specific period of time ranging anywhere from one day to one full year.

If you issue authorization to a company to access your reports, authorization is limited to a specific party for a specific amount of time.

ADDITIONAL CONSIDERATIONS

Obtaining New CreditA credit report security freeze won’t prevent you from opening a new credit account, applying for a job, renting an apartment, or buying an insurance policy but you might need to temporarily lift the freeze for these types of credit.Free Annual Credit ReportsA credit report security freeze won’t prevent you from ordering your free annual credit reports from www.annualcreditreport.com once every 12 months. Credit ScoresA credit report security freeze has no effect on your credit score because it is intended only to prevent identity thieves from establishing new credit in your name.

A credit report security freeze won’t stop you from receiving prescreened offers for credit in the mail. If you wish to stop prescreened credit offers, you must do so online, by mail, or by telephone by calling 888-5OPTOUT (888-567-8688).

Credit Report Security FreezesA credit report security freeze completely locks down or “freezes” your credit to prevent identity theft from occurring. With a freeze in place, creditors may not extend new credit unless you specifically authorize each creditor individually. Credit freezes are also specific to individual credit bureaus so you can freeze one and leave another completely open.

COMPARISON TO FRAUD ALERTS

Fraud AlertsOn the other hand, fraud alerts are merely a cautionary flag to protect consumers who have already become a victim of identity theft. Fraud alerts notify lenders they should take special precautions before extending credit in your name. Typically, that involves calling you to verify you are the actual person requesting the credit. Finally, fraud alerts automatically cover all three credit bureaus.

An initial fraud alert lasts for only 90 days while a security freeze stays in place for up to seven years. If you are a victim of identity theft, however, you can place an extended fraud alert on your credit reports which will also last for seven years.

COMPARISON TO FRAUD ALERTS

Anyone can request a credit report security freeze but fraud alerts are only available to consumers who are, or reasonably believe they may become, victims of identity theft.

Setting a fraud alert with any credit reporting agency will extend to the others while credit report security freezes are specific to each individual credit bureau and must be set individually.Fraud alerts are free but, unless you are a victim of identity theft, a credit report security freeze will cost between $3.00 and $10.00 each time you place, lift, or remove the freeze.

SECURITY FREEZE CAUTIONS

A credit report security freeze is an excellent tool in the fight against identity theft but in some cases you may want to remain cautious before placing a security freeze. For some consumers, the burdens of locking and unlocking the security freeze can grow tiresome over time. For example, you may want to open a store credit card at the point of purchase but with a credit report security freeze in place you might be stopped from doing so. The same is true for other types of credit such as requesting cell phone service or even applying for a job.Another consideration is the burden of figuring out which credit bureau to unlock for any given situation. In some cases, the credit grantor can tell you in advance which credit bureau to unfreeze but there could be a situation where you would have to unfreeze all three agencies to be sure the credit grantor gets the access they need to verify your creditworthiness.

Ultimately, the decision of whether or not to purchase a credit report security freeze will be yours to make, but if you want to prevent an imposter from opening new lines of credit in your name and you are not already a victim of credit theft, a credit or security freeze is one of many tools at your disposal to help protect you.

EFFECTIVE IDENTITY THEFT PROTECTION

Freezing your credit reports shuts down access to your hard-earned credit and is a proven method of preventing thieves from opening new accounts in your name.

Author: Eric Stephenson Eric Stephenson is the Founder and Managing Attorney of Stephenson Law Firm, a leading provider of innovative identity theft recovery solutions.

© 2016 Stephenson Law Firm PLLCwww.Utahjustice.com

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