Freezing your credit is a crucial step in protecting yourself from identity theft and fraud. A credit freeze, also known as a security freeze, restricts access to your credit report, making it difficult for identity thieves to open accounts in your name. As of September 21, 2018, the process of freezing and unfreezing your credit is completely free across all three major credit bureaus: Equifax, Experian, and TransUnion.
The cost of freezing your credit has changed significantly over the years. Before the new law was enacted, consumers were often charged fees ranging from $3 to $10 per bureau to freeze their credit reports. This meant that freezing your credit with all three bureaus could cost up to $30. However, the introduction of the Economic Growth, Regulatory Relief, and Consumer Protection Act eliminated these fees, allowing consumers to freeze and unfreeze their credit without any charges.
| Credit Bureau | Cost to Freeze/Unfreeze |
|---|---|
| Equifax | Free |
| Experian | Free |
| TransUnion | Free |
Understanding Credit Freezes
A credit freeze is a powerful tool for safeguarding your financial identity. When you place a freeze on your credit report, lenders cannot access your credit file, which means they cannot approve new accounts in your name without lifting the freeze first. This is particularly useful if you suspect that your personal information has been compromised or if you want to prevent potential fraud.
How Credit Freezes Work
To initiate a credit freeze, you must contact each of the three major credit bureaus individually. Each bureau has its own process but generally requires you to provide personal information such as:
- Full name
- Social Security number
- Date of birth
- Address
Once you submit this information, the bureau will verify your identity and place the freeze on your account. This process can usually be completed online or by phone within minutes.
Duration of a Credit Freeze
A credit freeze remains in effect until you decide to lift it. You can choose to lift the freeze temporarily or permanently. If you need to apply for new credit or have a background check performed, you will need to unfreeze your report. This can be done quickly online or via phone.
Steps to Freeze Your Credit
Freezing your credit is a straightforward process that can be completed in just a few steps:
1. Gather Necessary Information: Before initiating the freeze, collect essential details such as your Social Security number and date of birth.
2. Contact Each Credit Bureau: Reach out to Equifax, Experian, and TransUnion either online or by phone.
3. Submit Your Request: Follow the instructions provided by each bureau to complete the request for a credit freeze.
4. Receive Confirmation: After placing the freeze, you will receive confirmation from each bureau along with instructions on how to lift the freeze in the future.
5. Keep Documentation Safe: Store any confirmation numbers or PINs securely for future reference.
Contact Information for Credit Bureaus
Here’s how you can contact each bureau:
- Equifax: Online at www.equifax.com or call 1-800-349-9960.
- Experian: Online at www.experian.com or call 1-888-397-3742.
- TransUnion: Online at www.transunion.com or call 1-888-909-8872.
Benefits of Freezing Your Credit
Freezing your credit offers several advantages:
- Prevents Identity Theft: By restricting access to your credit report, it becomes significantly harder for identity thieves to open accounts in your name.
- No Cost Involved: Thanks to recent legislation, freezing and unfreezing your credit is completely free.
- Control Over Your Credit File: You can manage when and how lenders access your credit information by lifting the freeze as needed.
Downsides of Freezing Your Credit
While there are many benefits, there are some downsides to consider:
- Inconvenience When Applying for Credit: If you need to apply for new credit, you’ll have to temporarily lift the freeze with each bureau individually.
- Time Delays: Although lifting a freeze is usually quick, it may take some time if done via mail or if there are issues verifying your identity.
FAQs About How Much It Costs To Freeze Credit
- Is there a fee for freezing my credit?
No, freezing your credit is free at all three major bureaus. - How long does it take for a freeze to take effect?
A freeze takes effect immediately when done online or by phone. - Can I still use my existing accounts with a freeze in place?
Yes, you can continue using existing accounts; only new account openings are affected. - How do I lift a credit freeze?
You can lift it temporarily or permanently through each bureau’s website or customer service. - Does freezing my credit affect my credit score?
No, a credit freeze does not impact your credit score.
In conclusion, freezing your credit is an effective way to protect yourself from identity theft without any financial burden. By understanding how it works and following the steps outlined above, you can safeguard your financial future with ease.