How to Freeze Your Credit – What are the Pros and Cons?

How to Freeze Your Credit – What are the Pros and Cons?
  • Opening Intro -

    A credit freeze involves locking down or restricting access to your credit report.

    It is one remedy to protect yourself from identify theft.

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What A Credit Freeze Does And Doesn’t Do

Most credit lenders require your credit report to open a new account or extend your credit. Therefore, with a credit freeze, it will be harder for identity thieves to open another account using your details.

Lack of a credit report also makes it impossible to extend your credit card span. However, you can still get your annual credit report.

Credit freeze does not however affect court orders or search warrants whereby law enforcement agencies can gain access to your card report. Your existing creditors will also have right of access.

How To Freeze Your Credit

In America there are three credit reporting agencies where you can apply for freeze on your credit.

  1. Experian
  2. Equifax
  3. TransUnion

For the three of them, application for credit freeze uses the same mediums.

  • a) You can ether send an application through mail using their different secure addresses. All the attachments must also include the different locations.
  • b) You can also simply visit their respective websites for the credit freeze page and then follow the prompts.
  • c) The other option is to call them and request for a credit freeze.

Pros and Cons of Credit Freeze

Pros
  • With a freeze, you can keep identity thieves at bay, in that they must gain access to your credit report in order to open a new account with your details.
  • Freezing your credit does not in any way affect your credit score.
  • With a credit freeze, you can still access your annual credit report.
Cons
  • Highly inconvenient for credit lines that are constantly used for work related activities.
  • There is an extra fee charge for credit freezing.
  • It is tiresome to apply and notify all the 3 major credit reporting agencies one by one.
  • Even with a freeze on your credit, identity thieves can still gain access to your current credit line.
  • With a credit freeze, you probably won’t be able to apply for card extensions. This is because most companies require your credit report for extension.

Conclusion

Having a freeze on your credit can play a big role in protecting your money and credit. If you suspect that you might become a victim of identity theft, do not hesitate to alert your specific credit reporting company and then ask for a credit freeze.

If this article has been of help to you then please feel free to share it with your friends on social media. Who knows, one of your friends or family members may be a silent victim of identity theft with no knowledge of why and how to freeze your credit.

Consumer Tips reference:

summary guide on preventing ID theft

 
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Last update on 2018-06-20 / Affiliate links / Images from Amazon Product Advertising API

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Categories: ID Theft

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