Credit Freezes: A Powerful Tool for Protecting Yourself from Identity Theft
- Feb 27
- 2 min read
One of the best and easiest ways to protect yourself and family members from identity theft is to use a credit freeze or security freeze. Implementing a credit freeze does not negatively impact your credit score; it is provided at no cost and should not be mistaken for a fraud alert. While they both help to protect the individual against identity theft, they function in separate ways.
A credit freeze blocks new credit inquiries and prevents new lines of credit from being opened without the victim's knowledge. It blocks your credit report from scrutiny by lenders until you unfreeze it. You must contact all three major credit bureaus to enact the freeze. Credit freezes remain in place until lifted by the account holder. Credit freezes do not impact select court orders, existing creditors and debt collectors, lease screening, insurance inquiries, and employment checks.
Conversely, fraud alerts function as red flags. They alert lenders to use extreme care when verifying identity prior to opening new lines of credit. If a fraud alert is issued by one credit bureau, it is not unusual for the other bureaus to be notified. Fraud alerts provide strong protection for compromised individuals and for high-risk borrowers who routinely apply for credit. Like a credit freezes fraud alerts are free to place.
People who have had a data breach, especially if it involves their Social Security number or sensitive information exposed in a government or corporate breach, should freeze their credit. People who have been victims of identity theft should also utilize a freeze. If, for any reason, you have not applied for credit for an extended period of time, you too should consider placing a credit freeze on your accounts. Credit freezes also offer excellent protection for incapacitated adults, children, or for minors and/or individuals with a court-appointed guardian who have a third party acting on their behalf via power of attorney.
If you need to place a credit freeze, you can call the major reporting bureaus and start the process.
800-685-1111
888-397-3742
888-909-8872
Additional information about credit freezers can be found by clicking on the link below.
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