What is a Credit Freeze?

Have you heard the term ‘credit freeze’ and want to learn more about what it is?

First off, if you are wondering what it costs to freeze your credit, we have good news! It’s Free!

Federal law allows you to activate and remove a freeze on your credit report from each credit bureau at no cost.

To get started you will need to request a separate freeze from each of the three national credit reporting agencies (Experian, Equifax and Transunion).

When you place a security freeze on your credit report, the relevant credit bureau provides you with or lets you set up a PIN or password to use when lifting the freeze.

By law, credit bureaus must activate a freeze within 24 hours of receiving a request by phone or online, and they must lift a freeze within one hour of receiving a request to do so accompanied by your PIN or password.

If you lose your PIN or password, you can request a reset from the respective credit bureau, but the one-hour time requirement will no longer apply. Credit freezes are effective at thwarting unauthorized access to your credit file, but they also block authorized access to credit information. Because they prevent lenders from checking your credit, you’ll need to “thaw” your credit freezes before applying for a loan or credit account.

Another option is to do a ‘Credit Lock’

Like a credit freeze, a credit lock blocks all access to your credit report. One benefit of a Credit Lock vs a Freeze is that you can instantly turn it on or off through the credit bureau’s dedicated app or secure website. There’s no delay of up to 24 hours when locking your credit file, and no delay of up to one hour when unlocking it, as with a freeze.

Want to find out if you should freeze or lock your credit?

Call Rex Crandell Firm in Walnut Creek, CA to go over your options at 925-934-6320!