A new federal law made credit freezes free as of September 21, 2018. Prior to the enactment of the Economic Growth, Regulatory Relief and Consumer Protection Act state regulations allowed a patchwork of fees for placing or lifting a credit freeze, but those fees no longer exist.
A credit freeze “blocks potential creditors from being able to view or ‘pull’ your credit file, unless you affirmatively unfreeze or thaw your file beforehand.” Thieves trying to apply for credit using your information will be thwarted as most creditors will want to see a credit report before extending credit.
This means that if you want to apply for credit, you need to thaw your file so that the creditor can check your record. Previously most consumers had to pay a fee each time they locked or unlocked their credit file, but the federal law has done away with those charges.
Along with securing your credit file from identity thieves, security expert Brian Krebs points out another possible advantage of freezing your credit: “The credit bureaus profit from selling copies of your file to others, so freezing your file also lets you deny these dinosaurs a valuable revenue stream.”
An alternative to a credit freeze is a credit lock. They are similar in many ways, but there are key differences. It is usually easier to unlock a credit file than to thaw it, but, perhaps more importantly, a credit freeze offers legal protection that a lock does not. Also, even under the new law, there may be charges for a credit lock.
To place credit freezes you must contact all three of the credit bureaus directly. You may do so online, by phone or via postal mail.
It is also possible to place a credit freeze on behalf of children under the age of 16. Although a child should not have a credit report, the credit bureau will create one and then freeze it. This can prevent fraudsters from opening credit accounts in the child’s name. The law also allows conservators to obtain a credit freeze for the person they represent with proof of their authority, such as a power of attorney or court order.
The contact information for the three major credit bureaus is as follows:
Equifax
Equifax.com/personal/credit-report-services
800-685-1111
Experian
Experian.com/help
888-EXPERIAN (888-397-3742)
TransUnion
TransUnion.com/credit-help
888-909-8872
