Used to be you'd freeze your credit if you'd suffered identity theft or some other compromise of your personal information. But as data breaches have piled up, a pre-emptive credit freeze has become a popular way to protect your credit, even if a thief hasn't yet made fraudulent use of your info.
If you're one of the 190 million impacted by the United Health Care data breach or the more recent breach affecting Hilton and Marriott customers, then you might be considering some options to protect your data. Here's a look at how a credit freeze can help you.
What does a credit freeze do?
When you put a credit freeze (sometimes called a security freeze) in place, new creditors can't review your credit reports to judge whether you're eligible for a credit card or loan — and in turn, lenders are unlikely to grant credit to fraudsters posing as you. When you need to shop for credit for yourself, you can temporarily lift the freeze.
How much does a credit freeze cost?
Do I have to pay to freeze my credit? Nope. Placing and lifting a freeze is free at each of the major credit agencies, thanks to federal law.
How do I freeze my credit?
To set up a credit freeze, take these three steps.
1. Gather your information. In the past, all three of the credit agencies had consumers use a PIN to confirm their identities when they wanted to temporarily lift or permanently remove a freeze. But TransUnion, Equifax and Experian no longer require a PIN. Instead, you can set up a password-protected online account or provide identity-verification information by phone or mail. But if you go online, you can manage your freeze with a password-protected account instead.
2. Contact each credit agency. The web pages or phone numbers below are the quickest avenues to imposing a freeze. To submit your request by mail, use these addresses.
Freeze your credit with Equifax
Equifax Information Services LLC,
P.O. Box 105788,
Atlanta, GA 30348
(Fill out and submit this form to request a freeze by mail.)
888-298-0045
Freeze your credit with Experian
Experian Security Freeze,
P.O. Box 9554
Allen, TX 75013
888-397-3742
Freeze your credit with TransUnion
TransUnion
P.O. Box 160
Woodlyn, PA 19094
888-909-8872
3. Save your passwords. We're all guilty of using the same passwords for everything. However, that also means if hackers can crack your password, it won't take them long to access all of your information. For this reason, having a password manager is essential. Some of the top options include Dashlane and NordPass. They can create unique passwords for each of your online accounts to keep you safe, and store them securely for when you need to use them.
Other steps to protect your credit
- Monitor your credit reports regularly. While you can receive a free credit report from each bureau annually, having a service like MyFico helps you stay on top of any credit changes, like new accounts opening or inquiries. And if you don't recognize any changes, you can place freezes on your credit history right away before more damage happens.
- Store documents securely. If you can, sign up for electronic statements with your lenders. They'll arrive in your email, reducing the likelihood of anyone intercepting information through the mail. You can also use a service like Quicken's LifeHub to store any documents securely on the cloud. That way, you can shred paper files and have access on the go, anytime you need it.
- Use a password manager. A password manager creates difficult passwords to crack and stores them securely for you. Services like 1Password protect every aspect of your digital life, tying in all your online accounts with all of your devices in one hub to secure all data points.
- Use credit repair services to fix errors. If you notice errors in your credit report, you might be wondering how to fix them. Credit Saint specializes in helping customers improve their credit scores by working on their behalf to remove incorrect information on your credit reports.
