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May 7th, 2008
Looking for another way to keep your identity safe these days? Look no further than a credit freeze. A credit freeze basically locks everyone out from viewing your credit report, even creditors, which means no one will be taking out any new credit cards or loans in your name. It’s a great tool, but not everyone has the option to use it or use it for free. Currently, some states only allow people who have been victim’s of identity theft to use a credit freeze, while other states charge a fee for the service. Since most creditors use multiple credit bureaus in approving or denying you credit, you usually need to place a credit freeze on your report at all three major bureaus in order to really protect yourself.
Credit Freeze Questions
Is a Credit Freeze Just a Fraud Alert?
No, a credit freeze and fraud alert are different in several ways. Fraud alerts are more for people that have already had their identity stolen or believe it may have been stolen, while a credit freeze is more of a preventative measure. Unlike a credit freeze, you can still be issued new credit with a fraud alert, though the creditor may have to call you or take extra steps in verifying your information. Keep in mind that neither of these is meant for stopping a criminal from using an account they already have access to.
Who Has Access to My Credit Report With a Credit Freeze?
Even with a credit freeze in place, some companies or people may still have access to your credit report, though most aren’t a threat to your identity. You will still be able to view or request your own credit report and companies that you already have credit with can still view the report, such as your current credit card companies or cell phone carrier. Also, some states allow certain non creditors to view your report regardless of a credit freeze, including insurance companies, landlords, or potential employers.
Can I still get a loan or credit card with a credit freeze?
Should you ever need to apply for a loan or credit card while you’ve enacted a credit freeze, you can still get approved by temporarily lifting the freeze. Most credit bureaus will provide you with a PIN number that you can use to provisionally stop the freeze, though doing so could cost you a fee. Since the process of lifting the freeze can sometimes take several days, it may take longer than usual to get approved for new services or lines of credit.
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