What is Credit Freeze?
A credit freeze is a protective measure that restricts access to a consumer's credit report to prevent identity theft.
Definition
A credit freeze, also known as a security freeze, is a preventive measure that enables consumers to restrict access to their credit reports, primarily to safeguard against identity theft. By initiating a credit freeze, individuals can effectively block unauthorized parties, such as fraudsters or cybercriminals, from opening new credit accounts or conducting fraudulent transactions in their name. When a consumer requests a credit freeze, credit bureaus are legally obligated to withhold sharing their credit report with any third parties, including lenders or financial institutions. This proactive approach empowers consumers to control access to their credit information, making it significantly more challenging for potential fraudsters to exploit their personal data for illicit purposes.
Key Points
Proactive Identity Theft Protection
A credit freeze is a proactive measure to safeguard against identity theft by restricting access to credit reports.
No Impact on Credit Score
Credit freezes do not impact credit scores and are accessible to consumers at no cost.
Limitations of Credit Freezes
While effective in preventing new account fraud, credit freezes do not prevent unauthorized access to existing accounts.
Examples
Initiating a Credit Freeze
To initiate a credit freeze, consumers must contact each major credit bureau—Equifax, Experian, and TransUnion—providing personal identification information and possibly paying a nominal fee.
Frequently Asked Questions
Does a credit freeze affect my credit score?
No, initiating a credit freeze does not influence a person’s credit score in any way.
Can I still obtain my annual credit report with a credit freeze in place?
Yes, consumers can still access their annual credit reports for review purposes even with a credit freeze in effect.
How can I stop receiving prescreened credit offers with a credit freeze?
To cease receiving prescreened credit offers, consumers must submit a separate request by either calling 888-5OPTOUT or filing an online request through the official channels.
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