Credit Freeze meaning

A credit freeze is an anti-fraud measure wherein a credit bureau, Equifax, Experian, or TransUnion, prohibits third-party sharing of a credit report of the customer. The customer can request a credit freeze upon the suspicion of identity theft.

Identity theft occurs when a fraudster opens new accounts or makes purchases using the credit information of a customer. The customer who is now the victim can limit the damage resulting from fraud by using a credit freeze. A credit freeze, until lifted, disables financial institutions and other third-party institutions from accessing the customer’s credit information.

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Credit Freeze

The Types Of Credit Freeze

There two types of freezes: a credit freeze and credit lock. While both a credit freeze and a credit lock do the same thing, a credit freeze is commonly offered free of charge whereas a credit lock is a paid feature consumers can purchase.

A credit freeze allows the customer to block access to the credit report. A credit report that is restricted by a credit lock can be unlocked instantly using the customer's computer or mobile device.

A credit freeze can be requested for free at each of the three credit bureaus. Each of the credit bureaus provides a credit lock feature to the customer.

The customer can use a free credit lock from Equifax using the Lock & Alert app. The Lock & Alert app makes it convenient for a customer to lock and unlock the Equifax credit report. The Equifax credit report can be conveniently controlled by the customer for life and for free.

The customer can avail of a credit lock from Experian using the Experian CreditLock. Experian CreditLock is part of the CreditWorksSM. The CreditWorksSM is a premium subscription service at $29.95 per month and also includes:
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  • Monthly access to credit reports from all three credit bureaus
  • Alerts for new credit activity at any of the three credit bureaus
  • Identity theft insurance worth up to $1 million
  • Phone assistance from Experian experts in credit and fraud resolution

The customer can avail of a credit lock from TransUnion using the TransUnion Credit Lock Plus. The TransUnion Credit Lock Plus allows the customer access to TransUnion and Equifax credit reports from a computer or mobile device. Access to TransUnion and Equifax credit reports is protected against identity thieves with the TransUnion Credit Lock Plus. The TransUnion Credit Lock Plus also provides up to $1 million in ID theft insurance.

Credit Freeze Equifax

To request a credit freeze in Equifax, the customer needs to create a myEquifax account. The myEquifax account registration requires the following information:

  • First and Last Name
  • Date of Birth
  • Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
  • Mobile Number
  • Current Address

The myEquifax account can also be used to temporarily lift, permanently remove, and check the status of the credit freeze. A credit freeze on the credit report for a minor or an incapacitated adult uses the Minor Freeze Request form and the Incapacitated Adult Freeze Request form, respectively. These forms also need documents to prove the identities of the minor, incapacitated adult, and the person who will act as the authorized representative.

A credit freeze can also be requested via phone by the customer. The customer is required to give certain information for identity verification. For identity verification, the customer has options to either receive a one-time Personal Identification Number (PIN) via text message or answer questions based on the information on the Equifax credit report to process the credit freeze.

Credit freeze request via mail requires the customer to download and accomplish the credit freeze request form using the following identification information:

  • First and Last Name, including Middle Initial
  • Current Address including City, State, and ZIP Code
  • Former Address including City, State, and ZIP Code
  • Social Security Number (SSN)
  • Date of Birth

The credit freeze request form also requires photocopies of at least one of the following categories for identity verification:
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  • Identity
    • Social Security Card
    • Pay stub with SSN
    • W2 or 1099 Form
  • Address
    • Driver’s License
    • Rental lease agreement/house deed
    • Pay stub with Address
    • Utility bills such as gas, water, electricy, cable, or residential phone bill
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    Credit Freeze Experian

    To request a credit freeze in Experian, the customer needs to create a free Experian account. The Experian account requires the following personal details:
    ‍

    • First and Last Name, including Middle Initial
    • Current Address including City, State, and ZIP Code
    • Former Address including City, State, and ZIP Code
    • Social Security Number (SSN)
    • Date of Birth

    The Experian account can also be used to unfreeze permanently or schedule a thaw. A thaw is where the customer can specify the start and end date of the removal of the credit freeze. Credit freeze status changes can alert the customer via the Experian account.

    A credit freeze request via mail requires the customer to accomplish a written request and include the following details:

    • Full Name
    • SSN
    • Complete Address for the past two years
    • Date of Birth
    • Government Issued Identification Card like a driver’s license
    • Copy of a utility bill or bank statement

    Credit Freeze Transunion

    To request a credit freeze in TransUnion, the customer needs to create a free TransUnion Service Center account. The TransUnion service center account registration requires the following personal details:
    ‍

    • First and Last Name
    • Address with ZIP code
    • E-mail Address
    • Mobile Number
    • Date of Birth
    • Last four digits of the SSN

    Once registered, a credit freeze can be added at any time, free of charge by the customer. The customer can monitor the status of the credit freeze. The customer can also remove or temporarily lift the credit freeze. Credit freeze for a minor, spouse, parent and deceased relative can also be done in TransUnion.TransUnion also allows credit freeze applications via phone or mail. For mail, a written request together with the name, Address, and SSN must be sent by the customer. The customer also needs to associate its own credit freeze application via phone or mail by nominating a 6-digit PIN. The 6 -digit PIN should be something that the customer will remember that others might not easily guess.

    Credit Freeze Process

    A credit freeze restricts access to the credit report of the customer. The customer or any other person cannot open a new credit account while there is a credit freeze. A credit freeze is useful in avoiding identity theft by preventing credit report access by entities like financial institutions or creditors.

    Credit report access is still activated for entities while the credit report is in freeze. They are:

    • Creditors of accounts the customer currently holds
    • Certain government entities like child support agencies
    • Companies that the customer hired to monitor credit file
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    Benefits Of A Freeze

    Yes, it is good to put a credit freeze on a credit report. A credit freeze on a credit report protects the customer from identity theft and other forms of fraud like:

    • Account Takeover Fraud
    • Debit Card Fraud or Credit Card Fraud
    • Driver’s License Identity Theft
    • Mail Identity Theft
    • Online Shopping Fraud
    • Social Security Number Identity Theft
    • Senior Identity Theft and Scams
    • Child Identity Theft
    • Tax Identity Theft
    • Biometric ID Theft
    • Synthetic Identity Theft
    • Medical Identity Theft
    • Mortgage Fraud
    • Home Title Fraud
    • Lost or Stolen Passport
    • Internet of Things Identity Fraud

    Freezing All 3 Credit Bureaus

    The customer can freeze credit reports from all three credit bureaus by contacting each of them. Each of them allows credit freeze requests via online, phone, or mail. Requests via phone or mail require supplementary copies of documents for identity verification.

    Credit Freeze Affects Your Credit Score

    No, a credit freeze does not hurt the credit score of the customer. The customer’s credit profile is also not affected by the credit freeze. The credit freeze does not disable other applications like:

    • Applying for a job
    • Obtaining insurance
    • Renting a property

    Credit Freeze, on the other hand, can impact the customer’s ability to qualify for a loan or credit card. To qualify for a loan or credit card, the customer needs to thaw or temporarily lift the credit freeze before submitting the loan or credit card application.

    How To Do A Credit Freeze

    To do a credit freeze, the customer must contact each of the three major credit bureaus. The three major credit bureaus, upon receipt of the credit freeze request via telephone or electronic means, must place a credit freeze within one business day. Three business days are allowed for credit freeze requests sent by mail.For requests sent by mail, the customer is required to submit a written letter together with supporting documents for identity verification. Identity verification for phone requests is in the form of authentication questions related to the customer’s credit report.

    How Long Does A Credit Freeze Last?

    A credit freeze lasts until it is removed by the customer. The customer can request free removal of the credit freeze. The credit freeze will be removed no later than:

    • 1 hour after receiving the removal request via toll-free telephone or secure electronic means
    • Three business days after receiving the request by mail

    A credit freeze can also be lifted temporarily for free and for a period specified by the customer. The customer’s credit freeze temporary lift follows the same time period as the removal of the credit freeze.

    For more information contact the professionals at iSoftpull today.

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