You can also sign up for services such as LifeLock and PrivacyGuard at your expense and let them keep an eye on your credit report. In case of a widespread security breach, a company must offer potential identity theft victims access to free credit monitoring services. There are three types of fraud alerts you can request:Ī one-year active duty fraud alert if you’re deployed overseas militaryĪ seven-year extended fraud victim alert if you can show you filed an identity theft report with a state, federal or local law enforcement Once you file a fraud alert, the credit bureau will notify the other two on your behalf. You only need to set a credit alert by contacting one of the three credit reporting agencies via phone or by visiting one of their online fraud alert centers. If your account has a fraud or credit alert set up, creditors must call you to verify that you actually applied for credit before they act. Set up a credit alertīesides having access to free credit freezes, you also have the right to request a credit or fraud alert for your credit file. And you’re not responsible for unauthorized credit card charges over $50, as long as you report the loss right away. In most cases, someone with access to your credit card number can run up unauthorized charges but can’t access your credit information. Instead, contact your card issuer to close the account. If your credit cards are lost or stolen, you may not need a credit lock from the credit bureaus. Preventative maintenance can stop the damage before it gets out of hand. Check your credit card and bank statements for any unusual activity. Make it a habit to look it over and make sure there aren’t any unusual inquiries or credit lines you didn’t apply for. You have a right to request a free annual copy of your credit report. If you need access to your credit in the next year, consider one of the following alternatives: Regularly monitor your spending activity There are alternatives to a security freeze that can safeguard your personal information. Not everyone needs to lock down their credit, especially because unfreezing your credit report takes some time and effort. You’ll need to lift a freeze by contacting all three major credit bureaus to give a creditor access to your file.Ī credit freeze doesn’t stop fraudsters who already have access to your bank accounts or credit cards from making unauthorized purchases.Ī credit freeze doesn’t apply to your current creditors, even if the credit application may be fraudulent. Your employer or auto insurance company will not be able to access your credit report, which could affect your job application or vehicle insurance rate. No one can access your credit report to open new credit accounts in your name.Ī credit freeze doesn’t negatively affect your credit score.įreezing your credit can provide you with some relief from unauthorized access to your credit report, but it can also have its drawbacks such as: Weigh the following pros and cons to decide if it’s the best option in your case. When you create a security freeze, you won’t be able to apply for a line of credit, mortgage, credit card or car loan without lifting the freeze first. If one late fee can drop your credit score enough to affect your chances of qualifying for a credit card, then imagine what could happen if someone had access to your credit.īut there are disadvantages to freezing your credit report. Knowing how to put a freeze on your credit is vital to keep identity thieves from ruining it. Your Social Security card was lost or stolen. Your information was compromised in a data breach. You receive a medical or insurance bill you don’t recognize. You notice unusual activity or new accounts on your credit report. Freezing your credit would be a good idea if: Why do I need a security freeze?Ī security freeze stops creditors from accessing your credit file for a time range of three months to one year. You now have a right to request a credit freeze for up to one year - for free. The Federal Trade Commission (FTC) has passed a federal law to protect you from this issue. Creditors accessing your file can be a good thing if you’re applying for a home mortgage, but it can be trouble if someone is using your identity to apply for a credit card. What is a credit freeze?Ī credit freeze (also known as a security freeze) stops creditors from accessing your credit file. Fortunately, a recent federal law gives you more freedom to protect yourself (and your money) by requesting a credit freeze if something seems amiss. The FBI reports that more than 350,000 complaints of fraud, including identity and personal data breaches, were filed in 2018. Even landlords and auto insurers may check your credit, so protecting your FICO score is a smart choice. Financial institutions review your credit history to decide on whether to approve a credit card or a mortgage application. Credit affects so many aspects of our lives.
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