Credit Freeze Information
Frequently Asked Questions
What is a credit freeze?
A credit freeze is one of the best identity theft prevention tools available. It allows consumers to prevent access to their credit file against anyone trying to open up a new account or to get new credit in their name.
When a credit freeze is in place at all three major credit reporting agencies (TransUnion, Equifax and Experian), a consumer's credit report and credit score cannot be shared with potential creditors or other persons considering opening new accounts unless the consumer decides to unlock the file by contacting a consumer reporting agency and providing a PIN or password.
Why does freezing your credit help prevent identity theft?
Most businesses will not issue new credit or provide goods or services for later payment to an individual without first reviewing his or her credit report or credit score. If an individual consumer's credit is frozen and an imposter applies for credit in that individual's name, a creditor likely would deny the imposter's application, preventing an instance of identity theft. If your credit is frozen, even someone who knows your name, date of birth and Social Security Number will be stopped from opening new accounts in your name.
What does placing a credit freeze mean?
Placing a credit freeze means that you apply with all three national credit reporting agencies (see below), requesting that they apply a freeze to your credit. Once you do so, the credit reporting agencies are not permitted to give access to your consumer reporting file or your credit score unless you have authorized that access or the entity seeking to see your file has an exemption from the credit freeze law, as do your current creditors. When you want additional credit, you can open your file with a PIN or a password and the business extending the credit will decide whether to issue the credit.
Can I apply for credit when my file is frozen?
Yes, although in most states, it takes a bit of work and some thinking ahead to do so. People who choose to freeze access to their consumer reporting files may temporarily lift the freeze when they want to use their own credit files. However, you have to apply to do so, using a unique PIN number assigned when you applied for the freeze. In most states, the process takes a week or more, since the credit bureaus have three business days to process your request once it is received. However, some states have recognized that this delay discourages consumers from placing a freeze. As of September 1, 2008, residents of Arizona, Idaho, New Mexico, Utah, Wyoming, and Washington, D.C., can lift or remove a credit freeze in 15 minutes, And starting in January 2009, the 15-minute provision will extend to Indiana, Maryland, Montana, Nebraska and Tennessee.
How does a state credit freeze differ from a federal fraud alert?
A credit freeze grants each consumer the right to prevent the credit reporting bureaus from issuing his or her credit report or score for the purpose of issuing new credit or opening new accounts. Unlike the federal fraud alert, the credit freeze actually stops access to the consumer credit report and the credit score except for circumstances such as review of existing accounts, other limited purposes, or the express permission of the consumer. On the other hand, the federal Fair Credit Reporting Act creates two types of fraud alerts. One is available to anyone who is worried about identity theft, and expires after 90 days. The other is an extended alert for actual victims of ID theft who have a police report. Both types of credit alerts require creditors to take extra steps to verify that the person applying for credit is actually the person whose identity is being used. However, neither one prevents the potential creditor from getting the credit report or the credit score.
Would anyone have access to a consumer's credit file if it is frozen?
Yes, the state credit freeze laws include some necessary exemptions to the freeze. Credit freezes do not apply to any person or entity with whom the consumer has an existing account, nor to a limited number of other parties who may access the files for purposes not related to new accounts, such as law enforcement agencies and certain governmental agencies that need them for investigations and other statutory responsibilities.
Which states already have passed laws giving consumers the right to a credit freeze?
Forty-six states and the District of Columbia currently have credit freeze laws: Alaska, Arizona, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Indiana, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
For more information, or to view the state laws, see http://www.consumersunion.org/campaigns/learn_more/003484indiv.html
Is the credit freeze available in states that haven’t passed laws requiring it?
Yes. As of November 1, 2007, all three major credit reporting agencies (Experian, Equifax, and TransUnion) made the credit freeze option available to consumers living in the eleven states that haven’t passed laws requiring it.
For more information, see http://www.consumersunion.org/campaigns/learn_more/003484indiv.html
How do I place a freeze?
Detailed instructions for placing the freeze, including links to the forms, can be found on the University of Indianapolis website.
Does placing a freeze affect my credit score?
No. Placing a freeze has no effect on your credit score.
How long does a freeze last?
A freeze generally lasts until you remove it.