You’ll also notice that a fraud alert and a credit lock are extremely easy to set up: once you set up alerts with one bureau, the information is updated across all bureaus. This isn’t good for business, which is why credit bureaus tend to push alerts and locks instead. A credit freeze prohibits them from replying to credit checks AND selling your data. It’s simple: with a credit lock and a fraud alert, the credit bureaus are still legally allowed to sell your data to third parties. So how is that different from a credit freeze? The benefit of a fraud alert is that you are alerted anytime your credit data is accessed and it makes credit fraud harder by requiring businesses to verify your identity before opening new accounts. The benefit of a credit lock is that is can easily be turned on and off, usually with the tap of a button with your bank app. The difference, however, is important…and most credit bureaus don’t want you to know this!! They lock your credit report so that it’s inaccessible to third parties. Credit Freeze vs Credit Lock vs Fraud AlertĪ credit freeze, a credit lock and a fraud alert work in mostly the same way. For example, if your data has been compromised in a data breach, this puts you at a higher risk of having your identity stolen. Nevertheless, there are times when you should make it top priority. For this reason, anytime is a good time to implement it. When Should I Use a Credit Freeze?Ī credit freeze is a precautionary measure to guard you against identity theft. Of course, you will need your child’s social security number as well as documents to verify that you are authorized to act on behalf of the child. The criminal can, therefore, use the kid’s identity for years before it is detected. Minors have become an appealing target for identity theft because parents have little reason to check whether their kids have a credit record. Putting a credit freeze on your child’s account could be a very good way of protecting their identity. Auto insurance companies if your credit score is necessary in their rate-underwriting process.An example is a child support agency when trying to decide on matters of child support State and local agencies may also access your credit under a court order or warrant.Landlords or rental agencies vetting you as a potential tenant.Parties acting on behalf of your current creditors like debt collection agencies.The following entities have access to your credit report, even if you have put a credit freeze on your account. Some parties will still have access to your information. If a scammer has your credit card information and password they can still make fraudulent purchases since sellers do not look up your credit information before approving purchases.Ī better alternative to protect your current accounts would be to use an identity theft monitoring service.Īlso worth noting is that this consumer protection does not lock out everybody trying to access your credit report. While this will prevent hackers from opening new lines of credit, it won’t protect your current accounts. Will a Credit Freeze Keep Anyone From Seeing My Data? Anybody who tells you otherwise is scamming you. Read this carefully: To set and thaw a credit freeze is completely free. However, after Equifax was hacked in 2017, US Congress stepped in and required all credit bureaus to offer a credit freeze or fraud alert for free. How Much Does a Credit Freeze Cost?īefore 2018, credit bureaus used to charge $5-$10 per month to freeze or thaw your credit. So, even if criminals have your personal information such as your social security number, they can’t use it to open accounts under your name. When you freeze your credit, the credit bureaus are prohibited from giving out your data and the since the lender won’t have access to your credit history, they cannot approve your new account. Keep in mind, these consumer credit bureaus do not have your best interests in mind. You didn’t have to open an account, an account is automatically created.
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