Acredit freeze is the most effective way to prevent certain types of identity theft.
When your credit report is frozen, lenders can’t view it in response to an application for new credit, so a criminal who tries to open a loan or credit card in your name is unlikely to succeed.
The case for protecting your identity is as strong as ever, given that the number of data breaches hit a record high in 2021, according to the Identity Theft Resource Center.
But many consumers are dragging their feet. Although more than three-fourths of respondents to an Identity Theft Resource Center survey said that they were familiar with credit freezes, only 29% had ever placed one.
Reasons they cited for not using a credit freeze included a lack of need for one and confusion or difficulty with the process. Some consumers also had misconceptions about freezes, with fears that a freeze would negatively affect their credit score (it doesn’t) and that freezing or thawing a credit report is expensive (it’s free of charge).
You don’t have to suffer ID theft to place a freeze. In fact, it’s wise to freeze your reports before you become a victim. You’ll need to contact each of the three major credit bureaus.
