The Credit Freeze: Three Steps to Enhanced Financial and Identity Security
(Posted on Wednesday, November 6, 2024)
Did you know that only an estimated 10% of U.S. consumers*—a mere 34 million out of the 346 million of us—have taken the simple step of freezing their credit files?
That’s a powerful statistic, highlighting just how many people remain vulnerable to cybercrime and identity theft. Having experienced a targeted attack on my financial identity, I truly appreciate the importance of taking advantage of free tools to protect oneself.
So far, 2024 has been a rough year for cybercrime and identity theft. Nearly 40% of Americans have become victims, dealing with everything from drained bank accounts to ruined credit.
The good news is that there’s a simple, easy, and effective way to protect financial identity: a credit freeze.
What is a Credit Freeze?
A credit freeze locks your credit report, making it impossible for new creditors to access your information. This makes it much harder for thieves to open accounts in your name.
Myths About Credit Freezes
- Myth: Credit freezes hurt your credit score – Fact: They have no impact on your score.
- Myth: Credit freezes are permanent – Fact: You can easily lift them temporarily or permanently with your PIN.
- Myth: Credit freezes are complicated – Fact: They’re easy to set up and manage online.
Benefits of a Credit Freeze
- Stops unauthorized loans and credit lines: Most lenders won’t approve new accounts without your credit report.
- Doesn’t affect existing credit: You can still use your current cards and loans.
- Easy to lift temporarily: Need a new loan? Just give the credit bureau your PIN to temporarily unfreeze your credit.
How to Set Up a Credit Freeze
- Contact the Big Three: You’ll need to freeze your credit with Equifax, Experian, and TransUnion.
- Provide personal information: This includes your name, Social Security number, date of birth, and address.
- Get a PIN: Each bureau will give you a unique PIN to manage your freeze.
- Wait for confirmation: The freeze usually takes effect quickly.
Not sure where to go? Don’t worry
- Equifax: Visit Equifax’s website or call 1-800-349-9960.
- Experian: Freeze your credit via the Experian website or call 1-888-397-3742.
- TransUnion: You can freeze your credit through the TransUnion website or call 1-888-909-8872.
Additional Tips to Protect Yourself
- Credit monitoring: Services like LifeLock and Aura can alert you to suspicious activity.
- Multi-factor authentication (MFA): Add an extra layer of security to all of your digital accounts.
- Freeze your children’s credit: This can protect them from identity theft.
- Stay informed about data breaches: Be aware of any breaches that could affect you.
Credit freezes are easy to set up and highly effective. Put one hour on your calendar this week, and dedicate time to protecting yourself and your family.
Stay Safe,
Chris
Source:
https://www.lendingtree.com/debt-consolidation/fraud-alert-credit-freeze-study