What Is a Credit Freeze and How Do You Place One?

This month, we learned about one of the biggest data breaches in history. While specific numbers are hard to nail down, one proposed class action lawsuit claims that around 2.9 billion personal records may have been exposed.

As such, it’s now more important than ever to protect your financial identity. One major way to do this is by placing a credit freeze. A credit freeze limits access to your credit report, which can prevent someone from opening a new loan or credit card in your name, hacking into your bank account, or even using your information for scams. Freezing your credit can be done without cost and without harm to your credit, all while providing peace of mind in the wake of such data breaches.

What is a Credit Freeze?
A credit freeze, also known as a security freeze, keeps the sensitive data in your credit files from being accessed without your consent. This means that if someone tries to apply for credit using your personal information, the lender won’t be able to see your credit report and will likely deny the application.

Is It a Good Idea to Freeze Your Credit?
Yes, placing a freeze on your credit reports is one of the best ways to protect yourself from fraudulent credit applications. It's free and can be done quickly online or by phone. While it creates extra steps when you apply for new credit, the benefits of preventing fraud far outweigh the inconveniences.

How to Freeze Your Credit
To freeze your credit, you need to contact each of the three major credit bureaus: Equifax, Experian, and TransUnion. Here’s how you can do it:

• Equifax: You can call the automated line at 800-349-9960, speak to customer care at 888-298-0045, or visit their website. 
• Experian: Go online to start the process or call 888‑397‑3742.
• TransUnion: You can freeze your credit by calling 800-916-8800 or 888-909-8872, or by going online.

The quickest way to freeze your credit is online, but you can also do it by phone. The credit bureaus are required to place the freeze within one business day whether you request it online or over the phone. If you prefer to send your request by mail, they have three business days to freeze your credit after they receive the request.

What Information Do You Need to Freeze Your Credit?
Before you start, gather the following information:

• Social Security number (SSN)
• Date of birth
• Address
• A copy of your passport, driver’s license, or military ID
• A copy of tax documents, bank statements, or utility bills

If you freeze your credit by phone, be prepared to answer some questions to verify your identity.

How Long Does a Credit Freeze Last?
Once you place a credit freeze, it stays in place until you decide to lift it. You can temporarily unfreeze (or "thaw") your credit when you need to apply for new credit.

Reasons For Unfreezing Your Credit:
You might need to unfreeze your credit if you’re applying for a new credit card, car loan, mortgage, or even a rental apartment. Your credit report will need to be accessed by the lender to assess your creditworthiness.

Should You Get a Credit Freeze or Credit Lock?
Both a credit freeze and a credit lock block access to your credit reports, but there are key differences between the two. A credit freeze is free and mandated by federal law, offering strong legal protections. A credit lock is an optional service that a credit bureau may offer for a fee, and it provides fewer legal protections than a freeze.

What Are the Cons of Freezing Credit?
While freezing your credit offers significant protection, there are a few potential downsides:

• Inconvenience: You need to remember to unfreeze your credit when you want to apply for new credit, which can be a hassle. However, this is a small price to pay for the protection it offers.
• Limited Protection: A credit freeze won’t prevent fraudulent charges on existing credit accounts or scams involving your Social Security number. It’s still important to check your account statements regularly for any signs of fraud.

Who Can Access Your Frozen Credit Reports?
Even when your credit is frozen, some entities can still access your credit reports:

• You: You can still access your own credit reports, including getting your free weekly credit reports.
• Creditors: Your current creditors and debt collectors can still see your credit reports.
• Marketers: Companies may access your credit reports to send you promotional offers.
• Government Agencies: In certain situations, government or child support agencies can access your credit reports.

How to Unfreeze Your Credit
To unfreeze your credit, visit the credit bureau’s website and log into the account you used to freeze your credit. You can also unfreeze your credit by phone or mail if you can provide the necessary verification information.

Take Control of Your Financial Future with Coppel Access
At Coppel Access, we’re committed to helping you build and maintain a strong financial foundation. With our FDIC-insured bank account and Visa debit card, you can confidently manage your money.

Start your journey with Coppel Access today!