When You Don’t Want to Freeze the Security of Your Credit Report
A security freeze is a hard lock on your credit. If you’ve been the victim of identity theft or a recent store breach, your first thought might be to get a lock on. However, in some cases, you may be better off leaving this as it is.
A credit freeze can be helpful after you’ve been the victim of identity theft. In some cases, you will also want to do this when your credit card gets hacked . This procedure prevents anyone from getting credit in your name and places a fraud alert on your account.
However, at NerdWallet, they list several good reasons not to freeze your credit:
You shouldn’t freeze your credit if you need to access it in the near future, especially if you may need to access it more than once. The hassle of freezing, lifting, freezing, lifting and re-freezing is too difficult unless you have serious identity theft issues. And remember, lenders aren’t the only ones who need access to your loan. If you are getting insurance or a new contract for a cell phone, your credit should be available. Again, you will have to cancel the credit freeze.
Credit reports are not only about borrowed funds. If you are trying to rent an apartment or open an account with a utility company, they can do a credit check. Employers performing background checks can also do the same.
Instead of a credit freeze, try a fraud alert. It doesn’t freeze your credit, but it warns anyone who looks at your credit report that it could be compromised.
Follow the link to learn about other benefits and risks of a loan freeze.
Pros and Cons of Freezing a Loan | NerdWallet
Photo by Brian Rosengrant.