9 Reasons To Consider Freezing Your Credit Right Now (#6 Is Sneaky)

Identity theft and associated financial fraud are major problems. Each year, more than 1 million cases of identity theft are reported to the Federal Trade Commission (FTC).

Today, it’s more important than ever to protect your wealth. One effective way to do this is by freezing your credit, which prevents scammers from opening new accounts in your name.

A credit freeze is free, easy to set up, and doesn’t impact your credit score. If you’re looking for ways to prepare yourself financially, here’s why you should consider freezing your credit.

A credit freeze makes it nearly impossible for identity thieves to open fraudulent accounts in your name.

When your credit is frozen, lenders can’t access your credit report, making it much harder for scammers to use your personal information to take out loans or open new credit card accounts.

This extra layer of security can be especially valuable if your personal data has been exposed to a breach. It gives you peace of mind by securing your financial identity​.

Some credit-monitoring services charge monthly fees in exchange for keeping an eye out for fraudulent activity. By contrast, credit freezes don’t cost a dime.

Thanks to a 2018 federal law, all three major credit bureaus — Equifax, Experian, and TransUnion — must allow consumers to freeze and unfreeze their credit at no charge​. This means you can protect yourself from fraud without worrying about extra costs.

Some people worry that freezing their credit will make it difficult to apply for loans or new credit cards. But a credit freeze isn’t permanent — you can lift it at any time.

Whether you need to temporarily unfreeze your credit or remove the freeze for good, it’s a simple process that typically can be done online. This flexibility makes credit freezes a practical choice for both short-term and long-term security.

A freeze sounds like a major financial move that might have an impact on your credit. But unlike opening a new credit card account, freezing your credit won’t lower your credit score.

So, you can freeze and unfreeze your credit without worrying that your score might take a temporary tumble.

When you freeze your credit, your existing credit accounts remain open and active. You are still able to use the credit cards in your wallet, for instance.

The only thing that will change is that new accounts can’t be opened in your name without your permission.

A credit freeze isn’t just for you — it can also safeguard your family.

You can place a freeze on your child’s credit report to prevent identity thieves from taking out loans in their name.

Similarly, if you care for an elderly relative and you have power of attorney, you may be able to help them freeze their credit to protect against scams​.

Even with a freeze in place, you can still check your credit report. Credit freezes prevent so-called “hard inquiries” into your credit history. But soft-inquiries — which are used for non-borrowing purposes — can continue.

So, if you like to keep tabs on your credit profile, a freeze won’t prevent you from accessing your information.

Some people set up fraud alerts on their credit reports. This lets credit card lenders and others know that you have been the victim of a scam and that fraudsters might try something nefarious in the future.

A fraud alert can be helpful, as it makes companies take a second look to confirm your identity when someone tries to open an account in your name. But a freeze is more effective: It stops crooks dead in their tracks and makes it impossible for them to open an account in your name.

Setting up a credit freeze is simpler than you might think. You just need to contact each of the three major credit bureaus — Equifax, Experian, and TransUnion — through their websites or by phone.

You’ll need to provide proof of identity before you receive a PIN or password that allows you to unfreeze your credit when needed​. Unlike other security measures that require constant monitoring, a credit freeze offers lasting protection with minimal effort.

Privacy concerns are at the top of everyone’s mind. Even recent attempts to shrink the size of the federal government have raised questions about how effectively the nation’s leaders protect the privacy of citizens.

Freezing your credit is a smart way to protect yourself and loved ones from fraud and identity theft. The process is simple and free, and takes very little time.

When you make money moves such as freezing your credit, you are safeguarding your financial future.