I was a victim of the most recent data breach at Equifax, one of the three main credit agencies. Chances are you may be a victim as well. This breach has created a huge headache and a lot of worry for American consumers. Many victims have been taking steps to protect themselves and their identity. Perhaps the safest course of action – and one you may be considering if your information has been breached – is to freeze your credit. Here’s what you need to know.
Q: How do I freeze my credit?
A: Freezing your credit isn’t difficult, but it can be time-consuming. You’ll need to freeze your credit with all three main credit agencies (Equifax, Experian and TransUnion), not just one of them. This can be done online, by phone or through the mail. Be prepared to provide personal information such as your Social Security number and your address(es) for the past two years, among others. Once the freeze has been established, you will be given a PIN number referencing the freeze. Keep your assigned PIN number! You’ll need it to lift the freeze.
Q: Is there a fee involved?
A: Depending on your home state, there may be a $5 to $10 fee for this service. By law, Indiana residents can freeze their credit at no charge.
Q: How does a credit freeze work?
A: Freezing your credit places restrictions on who can view your credit report. The credit agency cannot release any information in your credit report once the freeze is in place. Only current lenders will have access to see this information. This action can help prevent a fraudster from trying to open a credit card in your name. However, if you need to open a line of credit such as a new credit card or a loan for a new car, you’ll have to unfreeze, or temporarily lift, the credit freeze to allow the new lender to access your credit history. Most of the time you can ask the lender which credit agency it uses so you only have to contact one of the agencies to unfreeze your credit rather than all three.
Q: How do I unfreeze my credit?
A: You can unfreeze your account or temporarily lift the freeze at any time by contacting the credit agencies. You will need to provide the PIN number the credit bureau gave you when you established the freeze.
