With more and more companies facing data breaches, the likelihood that your information got into the hands of nefarious hackers is increasing. If you received an announcement that your information was part of a recent data breach; you’ll need to know how to freeze your credit and protect your financial security.
What is a Credit Freeze?
Freezing your credit ensures that no new lines of credit can be opened in your name. This is vital if your financial or personal information was available to hackers. While changing your passwords and setting up alerts can help you to monitor your identity, freezing your credit is prudent for anyone facing a data breach where important unencrypted information may have been leaked.
Freeze With the Three Credit Bureau
Remember that freezing with one credit bureau does not freeze it for all. You will need to individually freeze your credit with Equifax Experian and TransUnion. Freezing your credit is free. You can freeze by simply going to each site’s online webpage and filing, or you can call or initiate the freeze by mail (this is the slowest option). You will need to provide your personal information and supply a unique PIN (Personal Identification Number) or password. Keep this information safe, as you will need it to temporarily or permanently lift the credit freeze.
When to Remove a Credit Freeze
If you have plans to make a large purchase that will require a line of credit or want to open a credit card, you will need to remove your credit freeze before you can complete the process. While this can be as quick as within an hour if done online, If you choose to lift your credit freeze by requesting via mail, it can take close to 3 business days. Whatever you choose, be sure to remember to lift the freeze before attempting to buy a home or car.
Final Thoughts
Freezing your credit can seem intimidating, but it can be a simple process. If completed online, you should be able to do it in less than 30 minutes from start to finish. Since there is no risk to your credit score and there are no fees associated with the process, freezing your credit is an ideal option for financial security.
