What You Need to Know About Freezing and Unfreezing a Loan
Now that the three major credit bureaus are required to offer you a free credit freeze , there are a few things to keep in mind.
As a reminder, freezing your credit files means lenders cannot verify your credit, which helps prevent fraudsters from opening credit lines in your name (you can still use your current credit accounts if your files are frozen; you simply cannot open new accounts) … For maximum efficiency, it is suggested that consumers freeze their reports at all three bureaus: Equifax ,Experian, and TransUnion .
The change was prompted by outrage over the Equifax hack in 2017, which left the financial and personal information of hundreds of millions of people vulnerable to cyber thieves.
Experts recommend taking this step as a precaution, but there are a few things to keep in mind. One big point: Equifax and TransUnion no longer require consumers to remember a PIN to unfreeze their credit scores online.
Equifax will now use password-protected online accounts, according to the New York Times , instead of a PIN. Consumers will create a “myEquifax” account associated with their personal email address. TransUnion also prompts consumers to create a password-protected account and select a six-digit PIN, while Experian also requires a five to ten-digit PIN . You will be able to unblock your accounts on the websites after you sign in.
Lorrie Cranor, a computer science professor at Carnegie Mellon University, tells the Times that passwords are often safer than PINs (and easier to recover). However, you do not want to use your regular password ; you can use a password generator or manager to create something that hackers can’t crack. Lastpass and 1Password are great options and favorites for Lifehacker. Here’s another tip for creating a strong password that you won’t forget.
And, as always, remember that freezing will not protect anyone from reading your current credit card information, so be careful. If you haven’t done so recently, check your credit report for signs of fraud .
Updated October 10, 2018 12:00 PM: This post has been updated to reflect that you need to select a six-digit PIN when freezing your TransUnion credit report.