As the world grows more digital by the day, your personal information is at greater risk of theft. In the unfortunate event a criminal gets their hands on sensitive information, they may be able to open a credit account under your name and build up a frightening amount of fraudulent charges. With threats present across all corners of the internet, it would be a blessing if there was some sort of emergency button to halt credit activity in the event your personal information is stolen. Fortunately, there is such an option. Let’s look at how to freeze your credit and when it’s appropriate to do so.
What Does it Mean to Freeze Your Credit?
Freezing your credit is just what it sounds like – it stops your credit report from updating and prevents it from being viewed by anyone. It bars lenders from viewing your report, so they can’t issue new lines of credit under your name until it has “thawed.” The primary reason for freezing your credit is to deter the financial impact of fraud. However, it’s also vital to protecting your credit score, which factors into such things as securing a new apartment and purchasing insurance. Freezing your credit also doesn’t prevent you from using your opened credit accounts, meaning you can still make purchases.
How to Freeze Your Credit
While this last-ditch effort to protect your finances and credit is usually reserved for dire circumstances – such as personal information theft – it’s nevertheless important to understand how to freeze your credit. To freeze your credit, follow these steps:
- Contact the Credit Bureaus: There are three major credit bureaus you must contact: Equifax, Experian, and Transunion. Either via phone or on their website, you can inform them of your desire to freeze your credit. The freeze will typically take effect the next business day.
- Have Personal Information Ready: To access your credit or make changes, you’ll be asked to confirm your identity by providing information like your social security number.
- Safely Store Your PIN: You’re eventually going to need to unfreeze your credit, and to do so, the credit bureaus will each issue you a personal identification number. This is what you’ll need to provide to unfreeze your account later.
Even after completing the freeze on your credits, it’s vital to take additional steps to secure your identity, such as changing account passwords, staying up to date on new phishing scams, and investing in encryption tools.
When Should You Unfreeze Your Credit?
Your credit is incredibly important, and you’ll need to have access to your credit score to make significant purchases, apply for loans, and rent a property. Once your personal information is secure and the threat to your credit is passed, you can unlock your credit. To do so, reach out to the three major credit bureaus and provide the PINs given to you during the freeze request. The lift may become effective as soon as an hour after the request. Since freezing and unfreezing your credit doesn’t cost you anything, you can also do it as many times as necessary.
Learning how to freeze your credit is essential to preserving your credit score and finances. While you’re seeking ways to protect your identity and personal information, don’t forget to invest in policies that safeguard your other assets, as well. At TJ Woods Insurance, our agents can help insure your home, vehicle, or other possessions with the most suitable policies. Contact us today if you want to ensure you, your family, and your finances are covered from all angles.
