My cousin Vern opened his mail one Saturday and found a welcome letter for a department store credit card. He'd never applied. Two weeks later, another letter came, this time for an auto loan he'd never heard of. Somebody had his name, birthday, and Social Security number, and they were busy.
It took Vern four months, dozens of phone calls, and a police report to clean it up. When he told me the story, the part that stuck with me was what the fraud investigator said at the end: "A credit freeze would have stopped both of those accounts."
Well, folks, that evening I froze my credit at all three bureaus. It took me about thirty minutes, and it cost me nothing.
What is a credit freeze?
A credit freeze locks your credit report so lenders can't look at it. Since most banks and stores check your credit before opening a new account, a freeze makes it much harder for a thief to open a credit card or loan in your name.
According to the FTC's guide to credit freezes and fraud alerts, freezing and unfreezing your credit is free, and a freeze doesn't hurt your credit score. It also doesn't affect the credit cards and accounts you already have.
How do I freeze my credit?
In plain words, you freeze your credit separately at each of the three nationwide credit bureaus. Contact Equifax at equifax.com or 1-888-298-0045, Experian at experian.com or 1-888-397-3742, and TransUnion at transunion.com or 1-888-909-8872. Freezing one does not freeze the others, so do all three.
Each bureau will ask for your name, address, birth date, and Social Security number to confirm it's you. Online, you'll usually create an account. By phone, you may get a PIN. Either way, write down how to log in or your PIN and keep it somewhere safe at home. You'll need it to unfreeze later.
Always type the bureau's web address yourself or use the FTC's links. Don't click a "freeze your credit" link in an email or text.
What if I need to apply for a loan or credit card later?
You can lift the freeze temporarily. Ask the lender which bureau they'll check, then unfreeze just that one for a few days, or all three if you're not sure. When you do it online or by phone, it usually takes effect quickly. After the application goes through, freeze it again.
Many people also need a lift when they switch phone carriers or apply for some apartments, so keep that login info handy.
What does a credit freeze not protect?
Put simply, a freeze helps block new credit cards, new loans, and new store accounts opened in your name. It doesn't stop someone from misusing the cards and bank accounts you already have, it can't protect you from a scammer who talks you into sending money, and it won't stop a fake tax return or Medicare claim. So keep reading your statements and your Medicare Summary Notices.
You can also check your credit reports for free at AnnualCreditReport.com, the official site. Look for accounts you don't recognize.
What's the difference between a freeze and a fraud alert?
A fraud alert is a lighter option. It tells lenders to take extra steps to confirm it's really you before opening an account. It's free, lasts one year, and you only have to contact one bureau, which tells the other two. A freeze is stronger, because it keeps lenders from seeing your report at all until you lift it.
And because many scams start with a phone call, our guides on bank impersonation calls and what to do after clicking a suspicious link are worth a read too.
What Vern does now
Vern's credit has been frozen at all three bureaus for two years now. No surprise welcome letters. He keeps his three logins on an index card in his fireproof box, labeled "UNFREEZE." He's lifted it exactly once, to buy a new recliner on a store card, and froze it again the next week.
Thirty minutes and zero dollars, folks. It's one of the best trades you'll ever make.
Have you frozen your credit yet? Tell us in the comments, and nudge a friend who hasn't.
