Fight Fraud with a Credit File Freeze

Identity theft is a major concern for many people. Once a thief has possession of your personal information, he has the ability to open accounts and borrow in your name –leaving you with the bill and credit damage. To fight this type of crime, some states have enabled consumers to “freeze” their credit file. Doing so will prevent credit bureaus from releasing your credit report and score to new lenders and other businesses, which can stop fraud from occurring.

How it protects against fraud
In most cases, financial institutions will need to see your credit report and score to consider you as a customer. However, if your credit file is frozen, they can’t access it and won’t be able to approve a new loan or credit line. Insurance companies, employers, and landlords also assess credit reports, so they too will be prevented from checking your file. As long as the credit file freeze (sometimes called a security freeze) is in place, thieves will have a very hard time opening fraudulent accounts.

Credit file freezes are only effective against the type of fraud where a thief tries to open new accounts. If he has possession of your existing credit cards or account information, he may be able to use them. Additionally, some businesses don’t check credit reports at all. In that case, they may grant a loan or provide a service in your name, as long as the thief can provide them with your identifying data.

How to add and remove the freeze
Many states allow you to freeze your file. Call the credit bureaus to ensure this is available in your state, and if any specific pricing or requirements will apply to you. If you can and you want to take this action, submit a written request to the bureaus, including your name, address, and Social Security Number. If you are a victim of identity theft and have filed a police report, include a copy of the paperwork too – you may be able to avoid having to pay the fee. If you do need to pay though, include your credit card number with the expiration date.
 
Once the request is received and processed, the credit bureau will send you a private personal identification number that you can use to lift the freeze, as well as a phone number to call. You will need to lift it before applying for credit or if you want a potential employer, landlord, or other business to check your credit. Depending on your state, there may be a fee to lift the freeze and another to add it again, though there is no cost to have it removed permanently.

• TransUnion
  Attn. Fraud Department
  P.O. Box 6790
  Fullerton, CA 92834
  800-916-8800
  www.transunion.com

• Equifax
  Attn. Fraud Department
  P.O. Box 105788
  Atlanta, Georgia 30348
  800-685-1111
  www.equifax.com

• Experian
  Attn. Fraud Department
  P.O. Box 9554
  Allen, TX 75013
  888-397-3742
  www.experian.com