Keep Your Identity Safe With a Credit Freeze or Fraud Alert
If you’ve ever had your identity stolen, you know it’s a scary, stressful experience. One unusual way to prevent this? Loan freeze.
This is unusual for a reason. Namely, it is inconvenient. Freezing restricts access to your credit report. This makes it impossible for a thief to obtain lines of credit in your name, but it also makes it impossible for a thief to obtain lines of credit until you unfreeze your report. If you are considering buying a home or taking out a loan, you obviously need access to your credit report.
Freezing is mandatory if your social security number or other data has been compromised . But Forbes explains that this, too, can be a smart preventive move.
Anyone who does not want to borrow money may want to freeze their loan for security reasons. A good candidate would be someone who owns their home or is a long-term renter who has no plans to buy a new car or get new credit cards in the near future.
The FTC explains that freezing does not affect your account. You can also get a free annual freeze credit report. And keep in mind that while the freeze prevents new lines of credit from opening, it does nothing to protect thieves from writing off existing lines of credit, so it is still worth monitoring your lending activity if you think your data is at risk.
To place a freeze, you need to call each of the major credit bureaus:
- Equifax – 1-800-349-9960
- Experian – 1‑888‑397‑3742
- TransUnion – 1-888-909-8872
Fees vary from state to state, but they are usually $ 5 or $ 10. There are comparable fees charged for canceling the freeze, and it also varies from state to state. Here is a list of these fees by state .
Another option is a fraud warning. Your credit report is flagged, but you can still open new lines of credit. Lenders just need to take additional steps to verify your identity. It’s a free option, and the FTC indicates three types of alerts are available:
Initial Fraud Warning. If you are concerned about identity theft but are not yet a victim, this fraud alert will protect your credit from unverified access for at least 90 days. You can post a fraud alert on your file if your wallet, social security card, or other personal, financial, or account information is lost or stolen.
Extended fraud warning. For victims of identity theft, extended fraud warning protects your credit for seven years.
Active military service. For those military personnel who wish to protect their reputation while serving, this fraud warning is valid for one year.
Again, for many people, freezing or even warning might be overkill. But if you have cause for concern about identity theft, or just want to protect yourself, it might be worth paying attention to. Forbes offers more details at the link below.
The Best Form of Identity Theft Protection That No One Knows About | Forbes