If a thief gets hold of your Social Security number, one of the most damaging things they can do is open new credit cards or loans in your name. A credit freeze is the simplest tool for shutting that door. It costs nothing, takes a few minutes online and stays in place until you decide otherwise.
Here’s what a freeze does, what it doesn’t do, and how to manage one without getting locked out of your own credit.
What a credit freeze actually does
A freeze restricts access to your credit report. Because most lenders check your report before approving a new account, the Federal Trade Commission explains that while a freeze is in place, nobody can open a new credit account in your name, including you. That last part is the trade-off: you’ll need to lift the freeze before applying for credit yourself.
A few other points worth knowing, according to the FTC and Equifax:
- It’s free to place and to lift. Federal law made freezes free at the three nationwide bureaus in 2018.
- It doesn’t affect your credit score.
- It lasts until you remove it. There’s no need to renew it.
- Anyone can freeze their credit for any reason. Your identity doesn’t have to have been stolen first.
What a freeze won’t do
A freeze is about new accounts. Equifax notes that it can’t protect you from other kinds of fraud, such as someone using a stolen credit card number on an account you already have. You’ll still want to review your statements and credit reports regularly.
A freeze also doesn’t stop prescreened credit offers from arriving in the mail. If you want those to stop, Equifax points to a separate opt-out at OptOutPrescreen.com.
How to place a freeze
There’s no single switch that covers everything. Each of the three nationwide credit bureaus keeps its own report, so you need to contact each one separately:
- Go to the freeze page for Equifax (equifax.com/personal/credit-report-services), Experian (experian.com/help) and TransUnion (transunion.com/credit-help). You can also request a freeze by phone or by mail.
- Verify your identity by following the bureau’s prompts, which usually involve entering personal details and setting up an account.
- Confirm the freeze and save any account login, PIN or confirmation you’re given. You’ll need it to lift the freeze later.
- Repeat with the other two bureaus.
USA.gov says a freeze requested online or by phone should be in place within one business day. Requests sent by mail can take up to three business days after the bureau receives them.
How to lift a freeze when you apply for credit
When you’re ready to apply for a mortgage, car loan, credit card or even some apartment rentals, contact the bureau and ask to lift the freeze. You can usually choose a temporary lift for a set period of time or remove it entirely.
You may not have to thaw all three reports. The FTC suggests asking the lender which bureau it uses and lifting the freeze only at that one. According to USA.gov, a lift requested online or by phone should take effect within one hour, while a mail request can take up to three business days.
Freezes for kids and family members
You can also freeze the credit of a child under 16. The FTC notes that a child’s freeze stays in place until you ask the bureaus to remove it, and each bureau has its own process for minors. Equifax says parents typically need documents such as a birth certificate. Adults acting under a power of attorney can freeze the credit of an incapacitated family member, too.
Freeze or fraud alert?
A fraud alert is a lighter-touch option. Instead of blocking access, it tells lenders to take extra steps to verify your identity. The FTC describes three types:
- Initial fraud alert: lasts one year and can be renewed. You contact one bureau, and it must tell the other two.
- Extended fraud alert: lasts seven years and is available if you’ve filed an identity theft report with the FTC or police.
- Active duty alert: lasts one year and is for service members on active duty.
Many people use both: a freeze for strong protection, plus an alert after a known breach or theft. If you’ve already been a victim of identity theft, the FTC’s IdentityTheft.gov site walks you through a recovery plan.