Why You Should Freeze Your Credit File

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by Linda Vitale - Lead Trainer and Educator AARP Arizona Fraud Watch Network

A credit freeze is one of the most effective tools against economic Identity Theft available to consumers. When it comes to protecting yourself from ID theft, it is always best to take matters into your own hands and be proactive. Placing a credit freeze is one of the smartest and easiest ways to do that.

A credit freeze allows you to actually ‘seal’ your credit reports. Therefore, no one can open up new lines of credit and the freeze denies anyone else the ability to check your credit report. This prevents thieves from establishing new credit in your name. If your credit file can’t be accessed, then a lender will not be inclined to issue a new credit card or finance a new loan. However, be aware that a credit freeze cannot protect you from other forms of identity theft such as medical, tax or employment ID theft.

Here’s how to place a Credit Freeze: You’ll need to call or visit the websites of each of the three credit bureaus and request a Credit Freeze. The cost in the State of AZ is $5.00 - per person - per credit bureau. The credit bureaus will assign a PIN (personal identification #) that you must keep in a safe place for later retrieval. The PIN will be required if you yourself need to apply for credit. Once a Credit Freeze is in place, your credit report is frozen to everyone else, except you.

From time to time, you may have an occasional need to temporarily ‘thaw’ your freeze, so that your own legitimate application for credit can still be processed by a lending institution. If you wish to apply for your own credit, you will need to contact the credit bureau(s) and ‘thaw’ the freeze for the number of days needed. Then it will automatically go back to being frozen again.

NOTE: Freezing your credit will not protect you from identity theft on your existing lines of credit, such as current loans or current credit cards. A freeze will not provide protection for any financial accounts that you already have open. Placing a credit freeze only protects you from future credit applications. In other words, if your current credit or debit card is lost or stolen, a thief can still use it to steal from you, unless and until you shut down the affected account.

Your information is only as safe as the companies that store your data and then protect it from data breaches. As of mid-December 2016, the Identity Theft Resource Center has reported 957 data breaches and over 35 million records have been exposed! So, chances are, your data is already out there, being sold to the highest bidder on dark underground websites.

Always treat your identity as a valuable asset that must be protected! Credit Freezes are one of the best defenses you have against identity theft. Consider a Credit Freeze like having an insurance policy that can help protect you from future identity theft.

 

Contact Info for Credit Bureaus: Equifax: 800-525-6285 or www.equifax.com   Experian: 888-397-3742 or www.experian.com   TransUnion: 800-680-7289 or www.transunion.com

Written by Linda Vitale - Lead Trainer and Educator AARP Arizona Fraud Watch Network