Credit Freeze

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Why Freeze Your Credit? | How to Freeze Your Credit | Freezing Your Child’s Credit | Security Freeze vs. CreditLock

What Is a Credit Freeze?

A credit freeze, also known as a security freeze, is a free tool that restricts access to your credit report. This makes it harder for identity thieves to open accounts in your name because creditors can’t check your credit without your permission. According to the Federal Trade Commission (FTC), "You don’t have to wait for your Social Security number or other information to be exposed in a data breach — or misused by an identity thief — to benefit from a credit freeze. Anyone can use a freeze to protect themselves against identity theft."[1]

Why Freeze Your Credit?

Identity theft can have devastating consequences, from fraudulent loans taken out in your name to damaged credit scores that take years to repair. By freezing your credit, you block unauthorized access to your credit report, making it nearly impossible for criminals to open accounts in your name.

Real-life examples highlight the importance of this step:

  • The 2017 Equifax breach exposed sensitive information for over 147 million people, leading to widespread identity theft. "The criminals identified a flaw in the credit agency's security system, executed a plan of attack to penetrate it and devised a scheme to cover their tracks on their way out."[2]
  • Axton Betz-Hamilton discovered her credit was ruined before she turned 18 when she attempted to set up her first utility bill in college.[3]
  • The IRS reported that rampant identity theft caused delays in resolving over 500,000 fraud cases in 2024. "Identity theft has long been a problem for the I.R.S. Criminals often steal taxpayers’ identifying information and file paperwork to fraudulently claim their refund."[4]
Geek Tip: Use a password manager to securely store the PINs or passwords provided by each credit bureau when you freeze your credit. You’ll need them later if you want to temporarily lift the freeze.

How to Freeze Your Credit

You can freeze your credit with the three major credit bureaus: TransUnion, Experian, and Equifax. You can also freeze your credit with the lesser-known bureau, Innovis. Here’s how:

If you’re applying for a loan or credit card, you’ll need to temporarily lift the freeze. Contact the bureau(s) directly and provide your PIN or password. Specify which creditor needs access and for how long.

Freezing Your Child’s Credit

Children are prime targets for identity theft because their Social Security Numbers are often unused. Freezing their credit prevents criminals from opening accounts in their name. To freeze a child’s credit, contact each bureau and provide proof of guardianship (e.g., birth certificate) along with their Social Security Number.

Yogi Tip: Freezing your child’s credit might sound complicated, but it’s worth it! Just gather their Social Security Number and birth certificate. It only takes a few minutes per bureau and gives you peace of mind.

Security Freeze vs. CreditLock

A security freeze is a legal right that’s free and regulated by federal law. A CreditLock is a paid service offered by all three major bureaus (Experian, TransUnion, and Equifax) that allows you to lock and unlock your credit report through an app. Unless your personal situation involves regularly needing third parties to access your credit reports, a security freeze is sufficient.

Additional Articles

Footnotes

[1] Consumer Advice, "Credit Freeze or Fraud Alert: What's Right for Your Credit Report?", Federal Trade Commission, October 2024.
[2] Nathan Bomey, "How Chinese military hackers allegedly pulled off the Equifax data breach, stealing data from 145 million Americans", USA Today, February 10, 2020.
[3] Chloe Taylor, "Parents are stealing their children’s identities to access debt—and destroying their kids’ credit scores in the process", Fortune, November 28, 2024.
[4] Alan Rappeport, "Rampant Identity Theft Is Taxing the I.R.S.", The New York Times, June 26, 2024.