Several states let people freeze their credit report, which makes it impossible to get credit in their name. Some states, like Texas, Illinois, Washington, and Vermont, only let people freeze their credit if they have already been a victim of identity theft. Other states, like California, New York, New Jersey, Louisiana, Maine, North Carolina, and Colorado, let people freeze their credit even if they haven't been a victim of identity theft.
You can put a fraud alert on your credit report in every state. This means that creditors should get in touch with you before giving you credit in your name. This may sound like a good idea, but there are no laws that require creditors to follow the alert process. Most of the time, even with the alert, credit is given when the person applies for it if they are approved.
What is a freeze on your credit?
When you freeze your credit report, no one can get credit in your name. Your credit report can't be seen by possible lenders, insurers, or employers. When you apply for a loan or your employer wants to look at your credit report, the credit reporting agency will tell the company that they can't see it because your account is frozen. At this point, most companies won't lend money.
If you freeze your credit, identity thieves won't be able to get credit in your name because lenders can't check your credit worthiness. Even if a criminal has your SSN, name, mother's maiden name, birthday, and account numbers for your existing accounts, they shouldn't be able to apply for and get approved for more credit in your name because a credit freeze "locks" access to your credit report.
You can still let the lenders you choose see your credit report, and you can still give potential employers the option to check your background. When you put a freeze on your credit report, the three credit reporting agencies give you a personal identification number that you can use to lift the freeze when you need access to your credit report for a specific reason.
How do I put a hold on my credit?
It's a little more complicated than putting your credit report in the freezer, but if your identity has been stolen, you don't have to pay to freeze your credit reports in most states. If you put a freeze on your credit report to prevent identity theft, most states will charge you about $10 per credit report. (You'll need to freeze each of your reports from the three major credit reporting agencies for the freeze to work.)
Permanently lifting a credit freeze is free, but if you just want one or two potential lenders to check your information, you'll have to pay, even if your identity has been stolen before. Locking and unlocking credit reports cost different amounts in each state.
Each of the three major credit reporting agencies, Experian, Equifax, and TransUnion, has a different set of steps you need to take to put a freeze on your account. Usually, you have to send information by certified mail and include your full name, address, social security number, date of birth, and payment for the freeze services. If you are a victim of identity theft, you will have to send a copy of the police report or complaint you filed with a law enforcement agency.
