How to Freeze Your Credit

Keeping your credit safe from cybercriminals is essential to protect your current finances and future loan applications. One way to enhance credit security is by freezing your credit. Freezing your credit prevents unauthorized personnel from establishing new credit, loans, or services in your name.

What Are Credit Freezes?

Credit freezes protect against identity theft and fraud. When you freeze your credit, it prevents anyone from accessing information such as credit reports and social security information until you unfreeze your account.

Placing a freeze on your credit is an excellent method of identity theft protection. Since all credit applications begin by looking at your credit score and report, a credit freeze will prevent cybercriminals from opening unauthorized accounts in your name.

Before issuing a credit freeze, it’s essential to understand that this process freezes both authorized and unauthorized credit checks. Not having access to authorized checks can complicate the application process for credit cards or loans, as you will need to remove the credit freeze before moving forward. 

How to Freeze Your Credit for Free

To freeze your credit, you will need to individually contact the three major credit bureaus — Equifax, Experian, and TransUnion — and request the pause:

• Freezing Equifax Credit: To freeze your credit with Equifax, call 800-349-9960 or complete the process online.
• Freezing Experian Credit: Call 888-397-3742 or go online to freeze your credit with Experian.
• Freezing TransUnion Credit: Freeze your credit with TransUnion online or by calling 888-909-8872.

Information Needed to Freeze Your Credit

It is essential to gather all necessary documents before starting the credit freeze process to ensure it goes as smoothly as possible. Each credit bureau has its own requirements, but you can reliably expect to need the following:

• Social security number
• Date of birth
• Address

How you initiate the freeze, whether online, by phone, or by mail, may impact the information you need as well. Your credit freeze process may also require:

• Proof of your address, like a utility bill
• Copies of tax documents, invoices, or bank statements
• Copy of a military ID, driver’s license, or passport

Each major credit bureau can provide you with the information you’ll need to freeze your credit. 

Why Would You Freeze Your Credit?

If you experience identity theft or multiple fraud attempts, a freeze may be necessary to keep your information safe. Some additional reasons to freeze your credit are:

• You are a data breach victim.
• You see suspicious activity on your account.
• You do not recognize new credit accounts or inquiries on a recent credit report.
• You receive unexplained bills or collection notices to your address in your name or someone else’s.

How to Unfreeze Your Credit

You can use the same phone numbers and web pages you used to freeze your account to unfreeze it. If you do not want to unfreeze your account indefinitely, you can choose to unfreeze it for a specific time, like a day or a week. The policy may vary depending on the bureau, so ensure you understand your options before starting the process.

What Are the Downsides of Freezing Your Credit?

While freezing your credit offers numerous benefits, there are a few downsides:

• A credit freeze is not foolproof. You are still susceptible to identity theft through other means. 
• If a thief steals information on an existing account, they can still use your credit without permission.
• You must establish accounts with all three bureaus and keep track of all necessary contact information and login credentials to manage credit access. 

Frequently Asked Questions

The following are frequently asked questions and answers regarding freezing credit. We encourage you to contact the HSC Wealth Advisors team if you do not see an answer to your question.

When Should You Freeze Your Credit?

If you are not actively shopping for a new credit card or a loan, it may be wise to freeze your credit. Since freezing and unfreezing your credit is free, you can do so as many times and for as long as you wish.

You should also consider freezing your credit if you experience a data breach or identity theft. In these situations, credit freezes are vital to protect your social security number.

Is Freezing Your Child’s Credit a Good Idea?

If your child is still a minor, one way to protect them from identity theft is to freeze their files until they come of age. Underage children typically only have credit if they are victims of identity theft or you establish them as an authorized credit card user to help build their credit history.

Before you can freeze credit for children under the age of 16, you must provide proof that you have the authorization to make the request. Evidence of your authority can be:

• Court order
• Birth certificate
• Government documentation verifying your status as a parent
• Legal written authorization to act on your child’s behalf

Once your child comes of age, you can unfreeze the files to allow them to seek credit independently.

Does Freezing Your Credit Hurt Your Credit Score?

Freezing your credit does not impact your credit score or ability to apply for a loan or credit card. However, a freeze can limit how a creditor evaluates your credit application. Creditors can include utility companies (e.g. power, cable, internet, mobile phone), landlords, insurance companies, and any other vendor who uses your credit report to evaluate your creditworthiness. If you do not unfreeze your credit before submitting a loan or other credit application, a creditor cannot access information such as a credit report or score to determine your qualification, which may delay the application process.

What Are Fraud Alerts?

Fraud alerts serve as an additional safety measure to protect you against identity theft. When you activate fraud alerts, businesses will contact you directly for confirmation before approving loans and credit card applications.

You only have to contact one credit bureau to establish fraud alerts, and they will notify the other two bureaus on your behalf. While setting up fraud alerts is free, they only last for a year before you must renew them. If you experience identity theft, you can get an extended fraud alert for up to seven years. Additionally, requesting fraud alerts grants you a free copy of your credit report from all three credit bureaus.

Will a Freeze or Fraud Alert Affect My Credit Score?

Establishing a freeze or fraud alert does not affect your credit score at all. When you have fraud alerts in place, creditors will know you have experienced identity theft and that they should take additional steps such as calling you before issuing any credit in your name.

Discuss Financial Planning With Our Team Today

To learn more about protecting your credit, we encourage you to get in touch with the wealth management team at HSC Wealth Advisors. Since the creation of our firm in 1983, we have helped hundreds of individuals navigate the intricacies of investing and managing their funds. We look forward to helping you meet your financial goals.