Credit report security freeze explained

Definition of security freeze

Security freeze is the best alternate to prevent someone from borrowing and opening new accounts by your name. When someone to open new accounts or to borrow money uses your personal information that’s known as identity theft. Security freeze is a notice that is placed on a consumer credit report upon his request that prevents the credit reporting agencies from sharing the consumer credit information to a third party without his/her permission. Credit reporting agencies such as Equifax, Experian and TransUnion can inform the third party that the security freeze has been placed on the consumer credit files.

How to add security freeze to credit files?

In order to place security freeze on your credit files, you have to write to each of the credit reporting agencies like Equifax, Experian and TransUnion for putting a freeze. Here are their mailing addresses to write to:

   Equifax Security Freeze
      P.O. Box 105788
      Atlanta, GA 30348

   Experian Security Freeze
      P. O. Box 9554
      Allen, TX 75013

   TransUnion Security Freeze
      P. O. Box 6790
      Fullerton, CA 92834-6790

All of the credits reporting agencies allow consumers to request security freeze via certified mail and there are some additional methods by which you can request credit agencies to place a freeze on your credit report. When you are write to credit agencies, don’t forget to mention your name, your current address, social security number, date of birth, copy of police report in case you are the victim of identity theft. To know more about each credit agencies policies about security freeze contact them.

Once the security freeze has been added to your credit report, it’ll take 10 business days for the credit bureaus to mail you the PIN (personal identification number). This PIN will be used in future for making any changes to your freeze status.

How much to pay for adding a security freeze?

According to the laws credit agencies can charge up to $10 for placing, temporary lifting and permanent removal of security freeze. You will not be paying anything in case you have been the victim of identity theft and have attached the police report document with your freeze request. In case you lose your PIN, the credit agencies may charge up to $10 for replacing or reissue a new PIN.

Equifax requirement and fees for security freeze here

For Security freeze via Experian here

For complete information about the fee, securities freeze Faq via TransUnion here

How long it take for the security freeze to become effective?

After the credit reporting agencies receive your certified mail, they have 5 business days to complete your request.

Opening new account with security freeze on my credit files

Yes, it is possible for you to open new account or make a request for new credit. But before that you have to request credit agencies to temporarily lift the freeze on your credit files. When you asked the credit agencies to freeze your credit report, they must have sent you a PIN and the instructions about lifting the freeze. So you can use this PIN to lift the freeze via phone. It takes 3 business days for the credit agencies to lift the freeze on your credit files and they can charge up to $10 for this temporarily lifting.

How long a security freeze will remain effecting?

Security freeze will remain on your credit files by the time you don’t request for its temporarily or permanently lifting.

Will a creditor have access to my credit files in case they are frozen?

No the creditors will not have access to your credit files. The only thing that the creditors will get is a code or message indicating that the files for this consumer have been frozen. But the certain entities like existing creditors; collection agencies will still have the access to your credit report. These agencies can review or collect on your account.

Need to get a freeze from all credit reporting agencies

Yes, you have to freeze your credit reports from all of the major credit reporting agencies. Different creditors use different credit agencies report to check your credit worthiness. So in case you want to freeze your credit report from everyone, freeze it from all three major credit-reporting agencies Experian, Equifax and TransUnion.

My credit score will lower when I have frozen my credit reports?

No. The existing creditors will still have access to your credit files and are able to report your credit behavior.

I still will be able to get my credit report with security freeze in work

Yes, you will still have access to your credit report and can get it from credit reporting agencies when you want to them.

Employers will have access to my credit files when they are frozen

No. You have to lift the freeze on your credit files to allow them your background check.

Security freeze Vs fraud alert

A fraud alert is a message available on a consumer credit reports that the creditors receive when checking their credit rating. This alert tells the creditors that there may be some fraud involved in this account. When a consumer has fraud alert on his reports, it slows down his ability to get new credit. On the other hand, security freeze prevents creditors, insurance companies or employers from checking your credit files. Most of the business companies will not offer you new credits or new accounts before checking your credit history.