Before I did it, I thought about freezing my credit for weeks. As a personal finance writer who deals with identity theft, I know it can happen This makes it harder for cyber criminals Opening a new credit account in my name – that would be difficult for me.
If you freeze your credit, you will have to manually freeze or “melt” it every time you want to apply for a new credit card, car loan, or mortgage.
Freezing your balance is not a simple process. It also involves registering individual accounts Three major US credit reporting agenciesEquifax, TransUnion and Experian and freeze your credit manually online or by phone or mail.
But there are two benefits that convinced me to do it. First, freezing your credit is completely free. Second, there is the peace of mind that comes with knowing you have neutralized a key tool in the identity thieves’ playbook.
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Why did I freeze my credit reports?
Data breaches are more common than you think, and your data may have been compromised at least once. Just this year, Ticketmaster and AT&T reported data breaches that affected millions of customers. According to a new lawsuit, an alleged hack of background search company National Public Data may have also compromised the personal information of 2.9 billion people.
Recently, I noticed an increase in the number of scam messages I received on my phone and in my email inbox. Most were easy to spot, but some were well researched.
I received various messages asking if I had ribs and offering me new job opportunities. The flood of messages, phone calls and emails made me think that at any moment – distracted or in a rush to get back to my desk for my next meeting – I could become a victim of a scam that could lead to identity theft.
Freezing my balance is one of the best ways to protect your data and money – but it’s not foolproof. Fraudsters and identity thieves can access my personal information through existing accounts. However, I can minimize the damage.
Read more: 5 Your personal data is on the Dark Web – what you can do about it
How to freeze my balance with TransUnion, Equifax and Experian
If you want to freeze your credit, you’ll need to do so with each of the three major credit bureaus. This required setting up an account at each one – a process that took about 30 minutes online. Generally, you’ll be asked for the same information: your name, date of birth, and the last four digits of your social security number. You’ll need to complete two-factor authentication via text message or email.
TransUnion and Equifax have special tabs in your dashboard to freeze your funds after you create an account. A few clicks and I’m done.
Experian makes it a little harder to find this option. After a few clicks, I found two ways to enable Free Security Disable.
Hover over and click on “Balances” in your dashboard Experian-Credit freeze – Experian’s payment offer works like a credit freeze, but among other things, it immediately freezes your credit report. On this page, you’ll see the free “Disable Security” option.
Screenshot von Danny Santana/CNET
Once you’re logged in, scroll to the bottom of the page and click on “Experian Credit Lock” to return to the same page. All three credit bureaus will confirm your credit lock via email.
If you don’t want to set up an online account, you can call any credit bureau to freeze your credit. Here are the numbers for each:
- TransUnion – 800-916-8800
- Equifax – (888) 298-0045
- Experian – 888-397-3742
Each bureau must freeze your credit within one business day of you requesting a credit freeze. If you need to freeze your credit, Experian, TransUnion and Equifax should freeze your credit within an hour. By mail, it can take up to three business days for your credit to be locked and frozen.
Freezing your credit won’t solve all your identity theft problems
Setting up a credit freeze is very easy. But I won’t say that your credit freeze will be comfortable. Here are some disadvantages to consider:
You must lock your balance each time you open a new account
If you’re thinking about applying for a new credit card, looking for your first home, or taking out a new car loan, you may want to wait to freeze your credit until you open an account.
Freezing your credit prevents cybercriminals or identity thieves from opening new credit accounts in your name. But it also holds you back. To open a new credit account, you’ll need to log into your accounts or contact each of the three credit bureaus to temporarily freeze your credit.
A false sense of security
Freezing your funds is a good step to protect your identity, but it can still be stolen.
You may consider signing up for an identity theft protection service. Individual plans typically start at $7 to $15, depending on the level of funding and the identity tracking you want. An identity theft protection program can monitor your credit score, bank accounts, and the dark web for you or your family’s personally identifiable information (PII).
Alternatively, you can use the free tools available to you. Review your monthly credit card and bank statements. View your health insurance history and credit report online. You can download your free credit report AnnualCreditReport.com.
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This will not stop spam messages
Unfortunately, if scammers have your phone number or email address, there is nothing you can do to stop them from withdrawing money from your existing accounts.
It’s best to block phone numbers and email addresses of unauthorized senders when you receive a strange message. Also, take some time to read messages carefully before clicking on a link.
This does not put an end to the new loan offers
Freezing your credit won’t remove spam emails and reserved offers you receive. Credit freezes are designed to prevent hard inquiries into your credit score, such as on leasing or student loan applications. You can still expect offers from credit card companies, insurance carriers, and more.
Financial institutions and debt collection agencies with whom you already have a business relationship can also check your creditworthiness. In special cases, federal, state and local governments can do this as well.
Credit monitoring companies like Credit Karma and Credit Sesame can tell you your current credit score.
You still need good password hygiene
Even if your funds are frozen, you should still practice good password hygiene. Make sure you don’t use the same login credentials on multiple websites – using the same login credentials is a common tactic used by cybercriminals.
If keeping track of your passwords becomes too much for you, you should consider purchasing a password manager.
Your bank account details will not be protected
Even though this may freeze your funds, it is your responsibility to protect your bank account information from fraudsters.
If you accidentally share account numbers or login information with cybercriminals, contact your bank immediately and change your password.
In the end I am glad that my credit has stopped
Freezing your debt has its pros and cons. But since I don’t plan on opening a new account anytime soon, it was worth it for me. I still feel safe afterward. It’s nice to know that I’ve thwarted any cybercriminals.
Of course, spam messages keep coming in. But I’m good at being the gatekeeper of my financial accounts. I have a habit of checking my bank and credit card statements regularly.
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