Credit Freeze

Credit freeze summary:

• Freezing your credit means that creditors can’t run a credit check on you. This is a strategy to prevent fraudsters from applying for new accounts in your name.

• It’s easy and free to freeze (and unfreeze) your credit online, by phone, or by mail. 

• You need to freeze (and unfreeze) your credit with each credit bureau separately.

Credit Freeze Definition and Meaning 

The modern world can be a dangerous place for your credit. If your personal information (such as your name and Social Security number) is exposed in a data breach, you could find yourself the victim of identity theft. Unfortunately, data breaches happen all the time. For most of us, at least some of our personal information is probably already out there somewhere.

When you freeze your credit, you’re locking it so no creditor can run a credit check on you. Most of the time, creditors require a credit check before they’ll approve you for a new account, so a credit freeze is a great tool to help prevent identify fraud. 

If a scammer opens a credit card in your name, they could run up a big balance that would be tied to your credit, negatively impact your credit rating, and cause you a lot of financial and legal headaches.  

You can get a credit freeze via each of the three major consumer credit bureaus. You can freeze and unfreeze your credit anytime you want, but you have to do it separately with each credit bureau. 

More About Credit Freeze 

You might hear that it’s a good idea to freeze your credit if you suspect your data might have been exposed or stolen by scammers. But you don’t have to wait for a financial emergency like potential fraud or identity theft to freeze your credit. In fact, it might be a good idea to freeze your credit when you’re not intending to borrow money, just in case. 

If your credit is frozen, no one (including you) will be able to do a hard inquiry into your credit file. If a lender asks a credit bureau for a copy of your credit report while your credit is frozen, it won’t be provided. So the lender won’t be able to verify your credit standing with a hard credit check. In most cases, that means you won’t be approved to borrow—and neither will a scammer attempting to steal your identity. 

You can still check your own credit while it’s frozen, and so can your current creditors and government entities with a valid reason. In some cases, potential employers, landlords, and utility companies can also do a soft credit credit check while your file is frozen. 

Credit Freeze: a Complete Breakdown 

Lenders use the three main consumer credit bureaus to evaluate applicants when they apply to borrow. This means you’ll need to reach out to all of them to freeze your credit files:

• Freeze your credit with Experian

• Freeze your credit with Equifax

• Freeze your credit with TransUnion

You’ll need to provide personal information to verify your identity and freeze your credit, including some or all of the following:

• Your full name

• Social Security number

• Date of birth

• Addresses going back several years

• Government-issued ID

If you don’t want to freeze your credit online, you can do it by phone or by mail. Online is the fastest option, though. If you request the freeze online or by phone, credit bureaus must put the freeze in place within one business day. If you request the freeze by mail, it must be done within three business days.

If you need to apply for a new credit card, personal loan, auto loan, or mortgage, you’ll have to unfreeze your credit with each credit bureau. If you make the request by phone or online, the freeze will be lifted within one hour. If you request it by mail, it will be lifted within three business days.