What is a credit freeze?
A credit freeze—also known as a security freeze—allows you to restrict access to your credit report. This restricted access makes it more difficult for identity thieves to open new credit accounts (credit cards, loans) in your name. Most creditors need to see your credit report before they approve a new credit account—and if they can’t see your credit report, they will usually not extend the credit.
Why request a credit freeze?
If you’re concerned about identity theft, data breaches, or someone gaining access to your credit report without your permission, you might consider placing a credit freeze on your credit report.
Does a credit freeze affect my credit score?
No, a credit freeze does not affect your credit score. In addition, a credit freeze does not:
• prevent you from getting your free annual credit report;
• keep you from opening a new credit account—you will need to temporarily lift the freeze and place it again when you’re done accessing your credit—all of which is free of charge;
• keep you from applying for a job, renting an apartment, or buying insurance—the credit freeze doesn’t apply to these actions so you will not need to lift it;
• prevent a thief with access to your credit cards, credit card information, and existing bank accounts (online) from making fraudulent charges or stealing funds—and you should monitor these accounts closely.
Does a credit freeze stop prescreened credit offers?
No—if you want to stop receiving prescreened offers of credit, call 888.567.8688, or go to optoutprescreen.com. The phone number and website are operated by the nationwide credit bureaus. You can opt out for five years, or permanently. But some companies send offers that are not based on prescreening, and your federal opt-out right will not stop those solicitations.
When deciding whether to opt out, you should consider that prescreened offers can provide many benefits—especially if you are in the market for a credit card or insurance. Prescreened offers can help you learn about what credit and insurance products are available, compare costs, and find the best product for your needs. Because you are preselected to receive these offers, you can only be turned down under limited circumstances. And the terms of prescreened offers may also be more favorable than those available to the general public. In fact, some credit card and insurance products may be available only through prescreened offers.
Can anyone see my credit report if it is frozen?
Yes, certain entities will still have access to your credit report even though it is frozen. For example:
• your report can be released to your existing creditors or to debt collectors acting on their behalf; and
• government agencies may have access in response to a court or administrative order, a subpoena, or a search warrant.
How do I place a freeze on my credit reports?
To place a freeze on your credit reports, contact each of the nationwide credit bureaus:
• Equifax—Equifax.com/personal/credit-report-services or call 800.685.111
• Experian—Experian.com/help or call 888.397.3742
• TransUnion—TransUnion.com/credit-help or call 888.909.8872
You will need to provide your name, address, date of birth, Social Security number, and other personal information. After receiving your freeze request, each credit bureau will provide you with a unique PIN (personal identification number) or password. You should keep the PIN or password in a safe place, as you will need it if you choose to lift your credit freeze.
How do I lift a credit freeze?
A credit freeze remains in place until you ask the credit bureau to temporarily lift it—or remove it permanently. If you make the request online or by phone, a credit bureau must lift a freeze within one hour. If the request is made by mail, the bureau must life the freeze no later than three business days after receiving your request.
If you choose to temporarily lift your credit freeze because you are applying for credit or a job—and if you can determine which credit bureau the business will contact—you can save some time by lifting the credit freeze only at that particular credit bureau. Otherwise, you will need to make the request to temporarily lift the credit freeze with all three credit bureaus.
What is the difference between a credit freeze and a fraud alert?
A credit freeze locks down your credit by requiring you to lift the credit freeze for a creditor to see your credit report—which most creditors require to extend credit in your name. Placing a fraud alert on your credit report allows creditors to get a copy of your report if they take steps to verify your identity. For example, if you provide a telephone number, the business must call you to verify whether you are the person making the credit request.
Fraud alerts may be effective at preventing someone from opening new credit accounts in your name, but may not prevent the misuse of your existing accounts, and you should monitor these accounts closely.
In Texas, a credit freeze, or security freeze, is a tool that allows individuals to restrict access to their credit reports, thereby making it more difficult for identity thieves to open new accounts in their name. Freezing your credit does not affect your credit score, nor does it prevent you from obtaining your free annual credit report, opening new accounts (after temporarily lifting the freeze), applying for jobs, renting apartments, or buying insurance. It also does not stop a thief from using your existing accounts. To stop prescreened credit offers, you can opt out via phone or online. A credit freeze does not completely restrict access to your credit report; existing creditors, debt collectors, and government agencies can still access it under certain conditions. To place a freeze, you must contact each of the three major credit bureaus (Equifax, Experian, and TransUnion) and provide personal information. They will then give you a PIN or password to manage the freeze. Lifting a freeze can be done temporarily or permanently, and the bureaus are required to lift a freeze within one hour if requested electronically or by phone, or within three business days if requested by mail. A credit freeze is different from a fraud alert, which allows creditors to access your credit report after verifying your identity, and is more focused on preventing new accounts from being opened in your name rather than locking down your credit entirely.
