Credit Freeze: Proactive ID Theft Deterrent

Consumers who are concerned about Identity Theft have a tool at their disposal: the credit freeze.

Two years ago, the credit freeze was almost unheard of, but now, 39 states allow you to freeze your own credit file.

When consumers freeze their credit file, they put a stop to all new credit activity. No new accounts, credit cards, or loans can be issued. This gives consumers peace of mind that new credit is being issued without their awareness.

Whenever consumers want to extend their credit in any way, they can temporarily lift the freeze.  A freeze is lifted by providing a PIN number. The credit freeze, therefore, does not prevent consumers from accessing their own credit.

To set up a credit freeze, consumers must notify all 3 credit bureaus (Experian, Equifax, TransUnion). Some states may require a small fee to initiate or lift a freeze.

Consumers can read more about state-by-state credit freeze laws here.

Note: this does not protect consumers from thieves using existing credit cards or bank account numbers, so consumers should be vigilant with respect to identity theft prevention tactics.

Tags: credit freeze, id theft, identity theft, consumer id theft