McGorty: Should You Freeze Your Credit?

SHOULD YOU FREEZE YOUR CREDIT?

A credit freeze can be a very effective tool against identity theft – a crime which can cost you your hard-earned money and your good credit rating.

It seems there are weekly news items about data breaches where vital consumer data held by private companies or government agencies is lost or stolen.  When a company experiences a data breach it is common for it to offer customers free credit monitoring.  This will tell you when a potential problem surfaces, but a credit freeze can prevent your vital data from being useful to a thief, and can limit the damage such a breach can do to your credit.  In the State of Connecticut, any consumer can request a credit freeze.

WHAT IS A CREDIT FREEZE?

A credit freeze allows you to seal your credit reports, only to be accessed with a Personal Identification Number (PIN) that is known only to you.  A criminal trying to open a new line of credit posing as you would be unable to do so without this PIN, even if they are able to obtain your ID.

Implementing a credit freeze does not impact your current lines of credit, and you can continue to use your credit lines as you usually would.

SHOULD I GET ONE?

If your credit report is accessed frequently due to work, or you open new lines of credit with financial institutions on a regular basis, a credit freeze may not be for you.  The cost and inconvenience of “thawing” will accumulate.

HOW DO I GET A CREDIT FREEZE?

You must apply for a credit freeze individually with all three credit bureaus. There is a cost associated with getting a credit freeze, usually $3-$10 per person.

Below are links to each of the major credit bureaus to help get you started.