Consumers have the right to obtain a security freeze on their credit reports. This prevents consumer reporting agencies from releasing information without express authorization. A security freeze is designed to prevent fraudulent activities like unauthorized credit applications, loans, and services being approved in your name. It’s a powerful tool for protecting your financial identity. However, be aware that placing a freeze can potentially delay or even prohibit the timely approval of legitimate applications for credit, loans, mortgages, or other new accounts.
A security freeze does not prevent all access to your credit report. Companies with whom you have existing accounts, including their affiliates and collection agencies working on their behalf, can still access your information for account review and collection purposes. This includes activities like account maintenance, monitoring, credit line increases, and account upgrades.
As an alternative to a security freeze, consider placing a fraud alert on your credit file. An initial fraud alert lasts for one year and requires businesses to verify your identity before extending new credit. Victims of identity theft are eligible for an extended fraud alert, lasting seven years. Both initial and extended fraud alerts are free. While a fraud alert doesn’t completely block access to your credit report like a freeze, it adds an extra layer of security by prompting businesses to take extra steps to confirm your identity before approving new credit.
