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Credit Freeze: Everything You Need To Know

A credit freeze or security freeze allows US consumers to limit access to their credit reports. It blocks the access of creditors to your credit report. Thus, this makes it harder for identity thieves to set up new accounts in your name.

Apply for a credit freeze in the scenarios below.

Identity Theft

Identity theft victims may benefit greatly from a security freeze. This concerns people who had their personal information hacked. Moreover, this security measure safeguards your credit report. It blocks any unauthorized accounts from being set up under your name.

Data Breach

Keep an eye out for major data breaches. This involves popular merchants, banks, and credit bureaus. Set up a security freeze on your accounts to avoid any misuse of your personal information.

No Immediate Need for Credit

A credit freeze strengthens protection and preserves your daily transactions. This is for individuals who do not need to apply for fresh credit immediately.

Unauthorized Access

This anti-fraud measure prevents these parties from gaining unauthorized access to your credit history.

  • Landlord
  • Employer
  • Any individual without your consent

Restricted Access to Credit Report

Creditors and lenders are prohibited from accessing your credit report without authorization. This happens after placing a freeze on your credit/account file. It makes creating new accounts in your name more difficult for identity thieves.

Added Security Measures

Lifting the freeze temporarily or removing it permanently requires additional verification. You must provide a PIN or password. This was part of your application. This makes it harder for unauthorized parties from lifting the freeze without your authorization.

 

Credit freeze provides great protection against identity theft. It creates some inconvenience as well. You must temporarily lift this status to move forward with new loan or credit applications. It involves some paperwork and some fees. Contact an anti-fraud expert regarding your state’s laws and the credit bureaus’ regulations.

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