Have you seen social media posts encouraging you to freeze your credit after a data breach? Here’s what you need to know.
A proposed class action lawsuit alleges that the personal information of 2.9 billion people was exposed, according to reports. The lawsuit says the data includes full names, current and past addresses, Social Security numbers, and information on parents, siblings, and other relatives.
If the lawsuit is accurate, it’s possible that all Americans had their personal information compromised in the breach. Though, according to CNBC, the breach may not be as far-reaching as some believe.
If you’re concerned, one way to protect yourself is to place a security freeze on your credit report. This involves contacting each of the three major credit reporting agencies, confirming your identity, and requesting a freeze.
Depending on the methods you use, a credit freeze can go into place in as little as one business day. The freeze can be lifted in as little as one hour. It does not cost anything to freeze or unfreeze your credit.
Here’s everything you need to know about freezing your credit:
What is a credit freeze?
A credit freeze makes it so creditors cannot access your credit report. This means new credit accounts cannot be opened in your name.
Credit reports are used by lenders, potential employers, insurance companies, and rental property owners to determine if you qualify. Restricting access to your credit report can prevent anyone (including you) from getting a loan in your name or opening a credit card.
This means a credit freeze can protect you from fraud if your identity has been stolen. However, if you are planning on opening a new credit account, you will need to lift the credit freeze either permanently or temporarily.
So, if you want to open a new credit card or apply for a loan, you’ll need to contact the credit agencies at least an hour before you apply for the new account. If you don’t, then the person you’re applying with will not be able to access your credit report.
A credit freeze does not impact your credit score.
How much does it cost to freeze your credit?
It is completely free to freeze and unfreeze your credit as many times as you want at the three major credit reporting agencies.
Everyone can request a free security freeze or unfreeze online, by phone, or by mail. You do not need to pay a subscription to freeze or unfreeze your credit and you do not need to give the agency payment information.
Credit freezes were made free under federal law in September 2018. The law made placing, temporarily lifting, or permanently removing a security freeze completely free nationwide. The law also made it so parents and guardians can get a free credit freeze for their children who are under 16.
Experian, Equifax, and TransUnion all offer subscription services. These credit monitoring services come with a monthly fee and subscribing is not required to place a freeze on your credit.
How to freeze your credit
To place a freeze on your credit you will need to contact each of the three major credit reporting agencies individually.
How to freeze your credit at Equifax
- Online by creating a myEquifax account.
- By phone by calling 888-298-0045.
- By mail by downloading this form and following the instructions listed.
How to freeze your credit at Experian
- Online by creating an Experian account and visiting experian.com/freeze/center.html.
- By phone by calling 888-397-3742.
- By mail by sending a request to Experian Security Freeze P.O. Box 9554 Allen, TX 75013
How to freeze your credit at TransUnion
- Online at the TransUnion Service Center.
- By phone by calling 800-916-8800.
- By mail by sending in a written request that includes your name, address and Social Security number and provide copies of two documents to verify your identity and current mailing address to TransUnion P.O. Box 160Woodlyn, PA 19094.
How long does a credit freeze take?
If you place the request online or by phone, agencies must freeze your credit report within one business day.
If you place the request by mail, agencies must freeze your credit repot within three business days.
How long do unfreeze requests take?
If you place the request online or by phone agencies must lift the freeze within one hour.
If you place the request by mail, agencies must lift the freeze within three business days.
How to get your credit report for free
Law requires each of the three credit reporting agencies to give you a free credit report each year.
AnnualCreditReport.com is the only website authorized by the federal government to issue free, annual credit reports from the three credit reporting agencies.
You can request your reports the following ways:
- Online: By visiting AnnualCreditReport.com
- Phone: By calling 1-877-322-8228 (TTY: 1-800-821-7232)
- Mail: By filling out the Annual Credit Report request form and mailing it to: Annual Credit Report Request Service PO Box 105281 Atlanta, GA 30348-5281