A security freeze prevents potential creditors from accessing your credit history. Then, criminals can't get loans or other forms of credit in your name.
Data breaches have affected millions of people in recent years. Social Security numbers, birth dates, addresses, and driver's license numbers have all been exposed in hacks. If your personal information was taken as part of a data breach, someone has stolen your identity, or you have reason to believe that you're likely to become the victim of identity theft, you should initiate a credit freeze. A credit freeze prevents a thief from opening up accounts in your name and ruining your credit.
Credit freezes—often called "security freezes"—basically seal your credit history. The freeze prevents a credit reporting bureau from releasing your credit information to a third party. So, if a thief tries to use your Social Security number and other personal information to apply for a mortgage loan or another form of credit, the creditor would reject the application because it couldn't check your credit.
In This Article- Exceptions to a Credit Freeze
- When to Use a Credit Freeze
- How to Set Up a Credit Freeze
- How to Temporarily or Permanently Lift the Freeze
- Cost to Set Up a Credit Freeze
- Getting Help
Exceptions to a Credit Freeze
A credit freeze generally doesn't have an impact on your existing accounts.
A Credit Freeze Doesn't Affect Your Current Accounts, Like Your Credit Card Accounts
A common misconception is that a credit freeze means you can't use your current forms of credit, like a credit card. But your credit report isn't accessed when you purchase something with a credit card. So, freezing your credit file doesn't affect your ability to use your existing accounts.
Freezing your credit also won't prevent misuse of your current accounts. If the thief stole your credit card information, that person can use your existing credit card during a credit freeze.
Existing Creditors Can Still Access Your Credit History
Even under a credit freeze, an existing creditor can access to your credit report for certain types of account review, collection purposes, fraud control, or related activities. For example, the following entities may still access your credit report during a freeze:
- a collection agency acting on behalf of an existing creditor, and
- state or local agencies, such as law enforcement and child support agencies.
When to Use a Credit Freeze
It is generally advised that you request a credit freeze at the three national credit reporting agencies (Equifax, Experian, and TransUnion) if:
- you know someone has stolen your identity
- you've been told that your personal identifying information has been compromised
- if you suspect someone has stolen your Social Security number and other information, like your date of birth, that can be used to open credit in your name, or
- you want to be especially cautious when it comes to your credit files.
How to Set Up a Credit Freeze
You may request a security freeze by contacting Equifax, Experian, and TransUnion individually. You can make your request:
- online
- by certified mail, or
- by calling the credit bureau.
You must make separate freeze requests with each credit bureau.
How to Temporarily or Permanently Lift the Freeze
The freeze generally remains in place until you choose to lift or "thaw" it. You used to have to get a Personal Identification Number (PIN) to thaw and later refreeze your credit file. But now you generally don't. (In some cases, Experian still requires you to use a PIN.)
Under federal law, the bureau must lift the security freeze not later than:
- one hour after receiving the request, if you make the request by toll-free telephone or secure electronic means, or
- three business days after receiving the request, if you make the request by mail. (15 U.S.C. § 1681c-1).
Cost to Set Up a Credit Freeze
In the past, the cost of imposing a credit freeze varied between states. It typically ranged between $3 and $10 for each credit reporting agency. Lifting the freeze temporarily or removing the freeze altogether also used to cost a fee.
Now, however, thanks to the federal Economic Growth, Regulatory Relief, and Consumer Protection Act (Senate Bill 2155), placing and lifting a credit freeze is free in every state. (15 U.S.C. § 1681c-1).
Getting Help
To learn more about how to protect yourself if someone steals your identity or what to do after your personal information is compromised in a data breach, go to Identitytheft.gov. Identitytheft.gov is the federal government's main resource for identity theft victims.
You can get a personal recovery plan, find sample letters to send to your creditors, and get an Identity Theft Report. The website also provides valuable information about what to do after your identity is stolen, other possible steps you should take, and specific instructions for certain accounts such as utilities, phones, government benefits, checking accounts, etc.
If you need help dealing with collectors or if you're being sued because a thief used your identity to incur debts, talk to a debt relief or consumer protection attorney.
Further Reading
How Renters Can Protect Their Credit If They Can't Pay RentUpdated May 07, 2024
The Nationwide Credit Reporting Agencies: Experian, Equifax, and TransUnionUpdated February 06, 2023
Getting Credit Reports From Specialty Consumer Reporting AgenciesUpdated May 07, 2024
FAQs
A credit freeze is one of the most important steps you can take to protect yourself from having identity thieves open credit accounts in your name. Freezes prohibit consumer credit reporting agencies from disclosing the contents of a credit report to any person requesting the data.
What is a credit freeze and when should you use it? ›
What is a credit freeze? When you place a security freeze, creditors cannot access your credit report. This will keep them from approving any new credit account in your name, whether it is fraudulent or legitimate.
Can I still use my credit card after credit freeze? ›
It doesn't affect your ability to use your current credit cards or other types of revolving credit. But if you want to open new lines of credit, including new credit cards, you'll need to unfreeze your credit.
Can someone steal your identity if your credit is frozen? ›
While a security freeze can help protect you by preventing certain access to your credit reports if someone attempts to open a new credit account in your name, it can't help protect you against other forms of fraud, such as a stolen credit card number.
Does a credit freeze stop collections? ›
Your report can still be released to your existing creditors or to collection agencies acting on their behalf. They can use it to review or collect on your account. Other creditors may also use your information to make offers of credit- unless you opt out of receiving such offers.
Can my credit score go up if it's frozen? ›
Does Freezing Your Credit Affect Your Credit Score? Freezing your credit report won't affect credit scores that are based on the report. A creditor might not be able to check your credit score during an application if it can't access your frozen report. However, the credit scoring models can still score the report.
How do I put a freeze on all three credit bureaus? ›
How to freeze your credit with all 3 bureaus
- Equifax: Call the automated line at 800-349-9960 or customer care at 888-298-0045, or go online. ...
- Experian: Go online to initiate, or for information call 888‑397‑3742. ...
- TransUnion: Call 800-916-8800 or 888-909-8872, or go online.
Keep in mind that if you plan to open up a new account/loan (mortgage, home equity line, credit card, auto, etc.), or apply for a new job, you'll need to unfreeze your account. If you need to remove the freeze, you may be charged a fee every time your freeze is lifted for a credit check.
Can you buy a car with a credit freeze? ›
Yes, indeed. But you can temporarily lift the freeze. This will allow a car dealership, bank or other lender to run your credit report so the lender can process an auto loan. If possible, it's best to find out in advance which agency the lender will be contacting, so you can be sure the right report will be unfrozen.
Can I use my credit card if my account is frozen? ›
Your credit card account remains active even when it's frozen, allowing you to successfully make many types of transactions, including: Recurring transactions you've already set up.
A security freeze can help prevent identity theft, because businesses will not open credit accounts without first checking a consumer's credit history. If your credit files are frozen, even someone who has your name and Social Security number probably will not be able to obtain credit in your name.
When someone dies does their credit report freeze? ›
It's important to notify all three major credit bureaus of the death and request a credit freeze. Some debts may still need to be settled after a loved one's passing, and it's important to contact creditors and handle these matters carefully.
Why is my credit frozen if I didn't freeze it? ›
System errors, file mixups, data breaches, or even identity theft may be why your credit is frozen without you initiating it.
What is the downside of freezing your credit? ›
A credit freeze doesn't help protect against fraud aimed at your existing accounts. You still need to be vigilant in checking those accounts to make sure you made all the transactions. Some people consider it a hassle, because you have to contact each of the three major credit bureaus individually.
Can I still use my credit cards if I freeze my credit? ›
A common misconception is that a credit freeze means you can't use your current forms of credit, like a credit card. But your credit report isn't accessed when you purchase something with a credit card. So, freezing your credit file doesn't affect your ability to use your existing accounts.
What is the difference between a credit block and a credit freeze? ›
Credit freezes and credit locks function similarly, but there are some differences. Both a credit freeze and a credit lock can help prevent unauthorized access to your credit reports. Credit freezes are always free, but credit locks may be a part of a paid service offered by a credit monitoring service.
Does a credit freeze cost money? ›
The three major credit reporting bureaus — Equifax, Experian and TransUnion —sometimes promote their credit lock services. However, there are key differences between the two services. Credit locks can carry a monthly fee, while credit freeze options are free.
Is it safe to unfreeze my credit? ›
A credit freeze, also known as a security freeze, is the best way to help prevent new accounts from being opened in your name. It's absolutely free to freeze, unfreeze and temporarily lift a freeze on your credit, and it won't affect your credit score.
Does freezing your credit card stop interest? ›
Credit cards can be frozen for many reasons, usually to prevent fraud or to stop yourself spending. Freezing interest charges is also possible if you are in financial difficulty, but will require a longer conversation with your provider about your affordability.
