A credit freeze or a security freeze can help protect you from fraud and identity theft. It limits access to your credit report unless you ask to remove it. Credit freeze will not affect your credit scores, but it can protect against identity thieves who use your personal information to apply for new credit. Since checking your credit report is usually the first steps in a new credit application, freezing your credit can help stop unauthorized credit accounts from being accessed. One important thing to remember is that this process can complicate when you attempt to apply for a legitimate loan, for example a new credit cards and other things. You would need to contact credit bureaus individually to remove the freeze. This service can be done at no cost upon request by phone or online.
A credit freeze limits certain parties to access a frozen credit report for certain circumstance. For example you, when you view your own credit report, lenders whom you have accounts already, rental agencies and landlords screening you as a potential tenant, cell phone providers and utility companies, to set the amount of security deposit required on equipment, debt collection agencies, child support agencies, auto insurance companies, employers conducting background checks, and government agents, executing court orders or warrants.
           Credit freezes can be lifted temporarily for a length of time however all three bureaus have specific instructions for lifting a freeze by phone or online. A person may permanently unfreeze their credit. Policies vary by bureau so make sure you understand what your options are before you begin the process. When attempting to do a temporary suspension attempt to do it at least an hour before to allow the credit companies conducting a credit check enough time.
           If you have been a victim of identity theft or suspect your personal information is being used by someone else, you can limit most access to your credit reports by requesting security freezes. Doing this can limit unauthorized credit checks but can also limit processing legit applications. fraud alerts are temporary and remain for one year, and some extended fraud alerts remain for seven. Credit freezes must be removed for access granted. Fraud alerts allow lenders access to your credit reports and ask that they verify with you before processing credit applications made under your name fraud alert offers a more convenient and potentially safer alternative. A fraud alert stays in place while you continue to use your credit as normal and won’t need to be lifted like a credit freeze would. The biggest difference is when you request a fraud alert at any one of the three credit bureaus, alerts are automatically placed at all three bureaus. To remove a Credit Freeze or a fraud alert before it expires will require you to contact each bureau separately.
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