Freeze Your Credit
Financial security is a concern these days and one of the best safety measures is to freeze your credit. I highly recommend freezing your credit as a proactive measure. It is also extremely important to implement a freeze if you know that your data has been stolen.
What is a credit freeze? Freezing your credit blocks access to your credit report.
Why does this help? A freeze is critical in preventing someone who has your stolen information from opening a credit card, bank loan, cell phone plan, mortgage, etc. in your name because in most cases, a lender will want to pull a credit report for an individual before extending them a line of credit. If your reports are frozen, the lender cannot obtain a report and in turn won’t lend money, thus preventing your stolen information from being used to open credit in your name without your knowledge.
Freezing your credit is fairly simple. There are three major credit reporting bureaus; Equifax, Experian, and TransUnion and you should freeze your report at each one. You may call each agency, or (I think the easier way) create an account online at each and follow their instructions for a credit freeze. A basic credit freeze is free and there is generally no need to purchase any of the add-ons that are presented by each company. You may unfreeze (thaw) your credit at any time, also for free.
There is an inconvenience to a freeze, but it pales in comparison to the benefits. It is that your credit report will be blocked in almost all instances, including if you are actively shopping for credit. So, before you make a big purchase that requires credit, you will need to temporarily thaw your credit. I would check with the lender to see what bureau they use and then request a thaw only on that report, then schedule it to automatically freeze again in a day or two.
I hope a credit freeze helps you feel more at ease! Please contact us if you have any questions regarding your own financial data security.
This blog is for general educational purposes and does not constitute financial, tax, or legal advice. Please contact our firm for specific advice applicable to your personal financial situation.