Placing a Security Freeze on Your Credit Report

What is a security freeze? Why would you want to place one on your credit report?

A security freeze is like the ultimate lock-down on your credit. If creditors and lenders can’t pull a frozen credit report - which is usually their first step in lending you money - they won’t want you as a borrower. 

So why would anyone want to freeze their report? The main reason is to fight against identity theft. If you’re worried about an identity thief opening new accounts in your name, you might consider a security freeze. This is the most aggressive defense you have when it comes to blocking someone else from taking out loans and applying for credit using your personal information. 

How to Place a Security Freeze

You must contact each credit bureau separately to place a freeze on your TransUnion, Experian, and Equifax credit reports. Don’t just place a freeze on one report; that’s like wearing chainmail only on your left leg during battle. You may as well not even bother. Freezing all three reports gives you more complete protection.

If you can prove that you are already a victim of identity theft, the bureaus will place the freeze for free. If you haven’t had your identity stolen, or can’t provide the bureau with the exact proof that it wants, don’t worry - you can still place a freeze for a small fee (which varies depending on the state you live in).

For more information about placing a security freeze with each bureau, visit:

TransUnion

Experian

Equifax

The Downsides to a Security Freeze

Of course, a security freeze isn’t without its drawbacks.

For instance, it will dramatically slow down the process when you go to apply for anything that requires pulling your credit report. This includes new personal or mortgage loans, credit cards, renting an apartment, signing up for certain utilities or cell phone service, and sometimes even employment. A freeze can mean you may even be denied altogether for these things. 

A security freeze also means that your existing creditors are unable to report to the bureaus any changes in your personal information, such as name or address updates. So if you get married or move, you will need to remember to notify the credit bureaus, in addition to your creditors, of changes to your name or address.

Temporarily Lifting a Security Freeze

You can temporarily lift a security freeze if necessary. You can choose either a global lift (which lets any creditor who has a legal right to pull your file do so) or a specific third party lift (in which you grant a single institution access to your credit report). A lift can last between one and 30 days.

You can remove security freezes through written request to the bureaus.

Some Creditors Can Still Pull Your Frozen Report

Some companies can still access your report even with a freeze in place. These include financial institutions that you already have a relationship with; law enforcement, child support, and collection agencies; and any company you’ve signed up with to provide you with a copy of your consumer credit report or a credit monitoring service. 

In addition to (or instead of) a security freeze, you can also place a fraud alert on your credit reports.