How to Freeze Your Credit (It’s Free and Takes About 15 Minutes)

If a scammer gets your name, date of birth and Social Security number, they can try to open a credit card, a car loan or a phone plan in your name. A credit freeze stops most of that cold. It blocks lenders from pulling your credit report, and without a report almost no one will approve new credit.

Since September 2018, federal law has made freezes free at all three national credit bureaus, for you and for your children (FTC). It does not hurt your credit score, and it does not affect the cards and loans you already have.

What a freeze does and does not do

A freeze restricts access to your credit file. While it is in place:

• New lenders generally cannot see your report, so applications in your name are declined.
• Your existing creditors can still see your file, and you can keep using your current accounts.
• Your credit score is not affected, and checking your own report still works.

A freeze does not stop someone from using a card number they already stole, and it does not cover every kind of account. Some banks, landlords and utilities use other data sources. That is why a freeze works best alongside the habits at the end of this article.

Step 1: Freeze at all three bureaus

Each bureau keeps its own file, so you need to place a freeze at each one. A freeze at only one leaves the other two open.

1. Equifax: equifax.com/personal/credit-report-services or 1-888-298-0045
2. Experian: experian.com/freeze or 1-888-397-3742
3. TransUnion: transunion.com/credit-freeze or 1-888-909-8872

Each site asks you to create an account and confirm your identity, usually with a few questions about your past addresses and loans. Online and phone requests take effect within one business day; in practice it is usually immediate.

Write down every username, password and PIN you create and keep them somewhere safe. You will need them to lift the freeze later.

Step 2: Lift it when you apply for credit

When you are about to apply for a mortgage, car loan, credit card or new phone plan, ask the lender which bureau it uses. Then log in and lift the freeze at that bureau, either until a date you pick or for a set number of days.

By law, a lift requested online or by phone has to take effect within one hour. A request by mail can take up to three business days. When the date passes, the freeze goes back on by itself.

Step 3: Freeze your children’s credit too

Children are a favourite target because nobody checks their credit until they apply for a student loan or their first apartment, sometimes years after the damage was done. Parents and guardians can freeze the credit of a child under 16 for free. The bureaus will ask for proof that you are the parent or guardian, such as a birth certificate, and a copy of the child’s Social Security card.

The same applies to adults you are the legal guardian or conservator for, for example an elderly parent.

Freeze or fraud alert: which one?

A fraud alert is a lighter option. It tells lenders to take extra steps to verify your identity before opening an account, but it does not block access to your report.

• An initial fraud alert lasts one year and is free. You place it at one bureau, and that bureau tells the other two.
• If you are a victim of identity theft and have filed a report at IdentityTheft.gov, you can get an extended alert that lasts seven years.

If you are worried right now, for example after a data breach letter, a freeze is the stronger choice. You can also place both.

What else to do

A freeze closes the biggest door. These habits close the smaller ones:

• Check your reports. You can get free reports from all three bureaus at AnnualCreditReport.com, the only site authorized by federal law. Look for accounts or addresses you do not recognize.
• Turn on account alerts. Most banks and card issuers will text you for every purchase over an amount you choose.
• Never give your Social Security number to someone who calls you. Government agencies and banks do not cold-call to ask for it.
• Act fast if something looks wrong. Report identity theft at IdentityTheft.gov. The site builds a personal recovery plan and the letters you need for the bureaus and lenders.

The bottom line

A credit freeze is free, does not touch your score, and takes about 15 minutes for all three bureaus. For most people, it is the most useful thing you can do to protect yourself from new-account fraud. Lift it for an hour when you need credit, and let it go back on by itself.

This article is general information, not legal or financial advice.