Credit Freeze

A credit freeze is also known as a security freeze. It is basically a lockdown on your credit report and score. This means that new lenders cannot access your credit file without getting your permission first. Most credit issuers require a credit check before they can offer you credit. With the freeze in place, unauthorized attempts will be rejected. As a result, new credit cards and loans cannot be issued in your name. Further, prospective employers and insurance companies cannot view your credit history. This may be a disadvantage and delay things in certain situations, like requesting insurance, loans, credit, and more. Further, it is wise to refrain from getting a credit freeze if you will be moving soon. This is because a credit check may be in order if you are getting new utility services and more.

A credit freeze also stops identity thieves from committing fraud and opening accounts in your name. It is especially appealing to previous victims of identity theft, because they are more likely to be targeted again. Check your state laws about freezes, but many states allow anyone to place a freeze, even if it used as a preventative measure against identity theft.

You can remove the freeze and allow others to access your credit report with your PIN (personal identification number). This procedure may take a few days, so think ahead and schedule your financial plans accordingly.