Freezing your credit is one of the best ways to combat identity theft, and it’s free. Security experts advise all Americans to take a few minutes to take what they consider a critical step to protecting their credit reports in an age where computer security breaches are increasingly common.
According to cybersecurity expert David Malicoat, it’s easy to freeze your credit report with the three major credit bureaus, Experian, Equifax and TransUnion. And the recent lawsuit accusing hackers accessed the social security numbers of “billions of individuals”“, he said, is a good reminder to do so.
“These options exist for a reason. I think everyone should have their credit frozen until they need it,” Malicoat told CBS MoneyWatch. “You just click a button that doesn’t allow any changes until you unfreeze it, and I think that’s exactly what everyone should do.”
Why should I freeze my credit?
On Friday, National Public Data confirmed a security incident that it said “may have involved some of your personal information.” The agency urged the public to take a number of steps to protect their identities, including freezing their credit.
“A credit freeze means potential creditors cannot obtain your credit report. This reduces the risk that an identity thief will be able to open new accounts in your name,” NPD said.
Freezing your credit will prevent bad actors from taking out loans, opening credit cards, or making any other transactions that might require a credit check in your name.
Of course, if a legitimate party needs to run a credit check and they are unable to do so, they will likely contact you, in which case you can lift the freeze.
“If someone tries to run it and it’s a valid thing, they’ll be told, ‘Your credit report is locked, can you unlock it?’ The problem with locking it is you don’t want unauthorized people to have access to it.”
How do I freeze my credit?
Go directly to the respective websites of each credit bureau. Create a username and password to log into your account. Once you have an account, you will have the option to click a button and freeze your credit.
“At this point, if you haven’t gone to the credit bureaus, go to their websites, log in and access your credit report for each one. It’s free and you’ll have the option to say ‘freeze my credit report’ with that specific credit bureau,” Malicoat said.
