Highlights:
- Security freezes are now free under federal law
- Freezes must be placed separately at each nationwide credit bureau
- Freezes will not impact your credit scores
A security freeze, also known as a credit freeze, is one way you can help protect your personal information against fraud or identity theft. While you may know that, and may even have a security freeze on your credit reports, here are some facts you may not know about security freezes.
1. Security freezes arefree
A federal law that went into effect in September 2018 made placing, temporarily lifting, or permanently removing a security freeze free nationwide.
2. Security freezes and fraud alerts are not the same
A fraud alert is a notice placed on your credit reports that alerts credit card companies and others who may extend you credit that you may have been a victim of fraud, including identity theft. With a fraud alert, if anyone – including you! – tries to open a new credit account in your name or make changes to an existing account, the company must take reasonable steps to confirm your identity, such as contacting you by phone at a number you provide, before granting the request.
With a security freeze, your credit reports cannot be accessed (with some exceptions) to open new credit unless you temporarily lift or permanently remove the credit freeze.
3. Security freezes must be placed separately at each of the three nationwide credit bureaus
You’ll need to place a security freeze on your credit reports at each of the three nationwide credit bureaus – Equifax, Experian and TransUnion.
To place a security freeze on your Equifax credit report, create a myEquifax account. You can view the status of your security freeze, and also temporarily lift or permanently remove the freeze through myEquifax. You can alsocall our automated line at(800) 349-9960 or call Customer Care at (888) 298-0045. Contact Experian and TransUnion for information on placing a security freeze on those credit reports.
4. Security freezes can be temporarily lifted
If you’re applying for credit – buying a new vehicle, for instance – and you have a security freeze on your credit report, you can temporarily lift the security freeze to allow for a credit check. At Equifax, you can use your myEquifax account to lift a security freeze for a date range you specify. You can also lift a security freeze by phone by calling our automated line at (800) 349-9960 or calling Customer Care at (888) 298-0045. Afterward, your Equifax credit report will be frozen again.
5. Security freezes do not impact your credit scores
Placing a security freeze on your credit reports does not impact your credit scores in any way. It also doesn’t prevent you from getting free copies of your credit reports every 12 months from each of the three nationwide credit bureaus through www.annualcreditreport.com.
To get two free Equifax credit reports each year, you can create a myEquifax account. You can also click "Get my free credit score" on your myEquifax dashboard to enroll inEquifax Core Credit™ for a free monthly Equifax credit report and a free monthly VantageScore® 3.0 credit score, based on Equifax data.
6. Security freezes can be placed on behalf of others
With appropriate legal documentation, such as a signed Power of Attorney or court order, you can place a security freeze on the credit reports of an incapacitated adult.You can also place a security freeze on the credit reports of your children under the age of 16 with a birth certificate, a court order or a foster care certification. For both, you’ll need to verify your identity, their identity, and your ability to legally act on their behalf.
7. Security freezes will not exclude you from pre-screened offers
Placing a security freeze on your credit reports will not prevent your receiving pre-screened credit card or insurance offers, because security freezes generally only prevent hard inquiriesin response to an application for credit. If you’d like to opt out of receiving pre-screened offers, please visit www.optoutprescreen.com.
8. Security freezes can’t protect you from other forms of fraud or identity theft
While a security freeze can help protect you by preventing certain access to your credit reports if someone attempts to open a new credit account in your name, it can’t help protect you against other forms of fraud, such as a stolen credit card number. It’s still important to check your credit card and bank statements for suspicious activity. It’s also important to regularly check your credit reports to ensure all your information is accurate and complete.
As an expert in financial security and identity protection, I bring a wealth of knowledge and hands-on experience to the discussion of security freezes. My expertise is grounded in a comprehensive understanding of the regulatory landscape, industry practices, and practical applications of security measures. Having closely followed developments in this field, I'm well-versed in the nuances of federal laws, such as those implemented in September 2018, which mandate that security freezes are now free nationwide.
Let's delve into the key concepts highlighted in the article:
-
Free Security Freezes:
- A federal law enacted in September 2018 made it free to place, temporarily lift, or permanently remove a security freeze nationwide. This crucial legislation emphasizes the importance of empowering individuals to protect their personal information without financial barriers.
-
Distinguishing Security Freezes from Fraud Alerts:
- Security freezes and fraud alerts serve distinct purposes. A fraud alert notifies creditors of potential fraud, triggering additional identity verification steps when someone attempts to open a new credit account. In contrast, a security freeze restricts access to credit reports, requiring a temporary lift for new credit applications.
-
Placement at Each Credit Bureau:
- It's essential to understand that security freezes must be placed separately at each of the three nationwide credit bureaus: Equifax, Experian, and TransUnion. This ensures comprehensive protection against unauthorized access to credit reports.
-
Temporary Lifts for Credit Checks:
- Security freezes offer flexibility, allowing individuals to temporarily lift the freeze when applying for credit, such as when buying a new vehicle. This controlled lifting process, whether through online accounts or phone calls, facilitates necessary credit checks while maintaining overall security.
-
Credit Score Impact:
- A critical assurance is that security freezes do not impact credit scores. Placing a freeze on credit reports does not hinder individuals from obtaining free annual credit reports or participating in credit monitoring services.
-
Placing Freezes on Behalf of Others:
- With appropriate legal documentation, individuals can place security freezes on behalf of others, including incapacitated adults and children under 16. This emphasizes the importance of verifying identities and legal authority when acting on behalf of others.
-
Exclusion from Pre-Screened Offers:
- Contrary to common misconceptions, security freezes do not exclude individuals from receiving pre-screened credit card or insurance offers. However, if individuals wish to opt out of such offers, they can visit www.optoutprescreen.com.
-
Limitations of Security Freezes:
- While security freezes are a powerful tool against certain types of fraud, they do not protect against all forms of fraud or identity theft. Regular monitoring of credit card and bank statements remains crucial to detect and address other potential threats.
In conclusion, understanding the intricacies of security freezes empowers individuals to take proactive steps in safeguarding their financial identities. This knowledge is instrumental in navigating the evolving landscape of financial security and identity protection.
