I contemplated freezing my credit for weeks before I did it. As a personal finance editor covering identity theft, I knew it would make it harder for cybercriminals to open a new credit account in my name -- but it would also add a few extra steps for me to do the same.
When you freeze your credit, you have to manually unfreeze or "thaw" with each of the three major credit bureaus whenever you want to apply for a new credit card, car loan or mortgage.
The process of freezing your credit isn't so straightforward either. It involves signing up for individual accounts with Equifax, TransUnion and Experian and freezing your credit manually online or by phone or mail.
But there are two benefits that sold me on it. First, freezing your credit is absolutely free. And second, you get peace of mind in knowing you've neutralized a major tool in identity thieves' playbook.
Why I froze my credit reports
Data breaches happen more often than you think, across multiple industry sectors. And chances are, your data has been compromised at least once.
Just this year, Ticketmaster and AT&T reported data breaches that impacted millions of customers. A hack of background search company National Public Data also compromised the personal data of hundreds of millions of other people..
We've also learned this month that a February cyberattack on Change Healthcare has impacted the lives of 100 million people, according to an investigation by the US Department of Health and Human Services. Hackers mostly got access to medical records in addition to Social Security numbers. But if you're worried about new credit accounts being opened in your name, a credit freeze can offer peace of mind.
I've noticed an uptick in the amount of scam messages I receive on my phone and in my email inbox since the beginning of the year. Most were easy enough to sniff out, but some were fairly well researched.
I've received a variety of messages asking me out for ribs and even offering me new job opportunities. The barrage of messages, phone calls and emails made me think that at any given moment -- while distracted or in a rush to get back to my desk for my next meeting– I may fall victim to a scam that could lead to identity theft.
Freezing my credit is one of the best ways to protect your data and money -- but it's not foolproof. Fraudsters and identity thieves might still gain access to my personal information via
existing accounts. However, I can limit the damage.
Read more: 5 Signs Your Personal Data Is on the Dark Web -- And What You Can Do About It
How I froze my credit with TransUnion, Equifax and Experian
When you freeze your credit, you'll need to do it with each of the three main credit bureaus. That requires setting up accounts at each -- a process that took about 30 minutes online. Generally, you're asked for the same information: your name, birthday and the last four digits of your Social Security number. You then need to complete two-factor authentication via text or email.
TransUnion and Equifax have dedicated tabs available to you on your dashboard to freeze your credit after you create an account. A few clicks, and I was all set.
Experian makes this option a bit more difficult to find. After some clicking around, I found two ways to activate a free security freeze.
You can hover over "credit" on your dashboard and click Experian Credit Lock -- Experian's paid offering that works similar to a credit freeze, but that among other features locks your credit report instantly. On that page, you see the free "security freeze" option.
You can also scroll down to the bottom of the page while signed in and click Experian Credit Lock to get to the same page. All three credit bureaus will confirm your credit freeze via email.
If you don't want to set up online accounts, you can call each credit bureau to freeze your credit. Here are the numbers for each:
TransUnion – 800-916-8800
Equifax – (888) 298-0045
Experian – 888-397-3742
After
you've
requested
a
credit
freeze,
each
bureau
must
freeze
your
credit
within
one
business
day.
When
you
need
to
unfreeze
your
credit,
Experian,
TransUnion
and
Equifax
are
required
to
thaw
your
credit
within
an
hour.
By
mail,
it
may
take
up
to
three
business
days
to
freeze
and
unfreeze
your
credit.
Freezing your credit won't solve all of your identity theft worries
Setting up the credit freeze was simple enough. But I'm not going to tell you that having your credit frozen is convenient. Here are some downsides to consider:
You'll have to unfreeze your credit every time you open a new account
If you are thinking of applying for a new credit card, looking for your first home or thinking of taking out a new car loan, it's probably best to wait until after you've opened the account before freezing your credit.
Freezing your credit prevents cybercriminals or identity thieves from opening new credit accounts in your name. But it also stops you. To open a new credit account, you'll need to login to your accounts or contact each of the three credit bureaus and temporarily unfreeze your credit.
False sense of security
Freezing your credit is a good step toward protecting your identity, but it can still be stolen.
You may consider signing up for an identity theft protection service. Individual plans typically start from $7 to $15 depending on the level of financial and identity monitoring you want. With an identity theft protection plan, you can monitor your credit, bank accounts and the dark web for your or your family's personal identifiable data, or PII.
Alternatively,
you
can
take
advantage
of
free
tools
at
your
disposal.
Review
your
monthly
credit
card
and
bank
statements.
Also
look
at
your
medical
claims
history
online
and
on
your
credit
report.
You
can
download
your
free
credit
report
on
AnnualCreditReport.com.
It won't stop spam messages
Unfortunately, if scammers have your phone number or email, you won't be able to stop attempts to scam you out of money in your existing accounts.
It's
best
to
block
telephone
numbers
and
email
addresses
from
unrecognized
senders
everytime
you
receive
a
strange
message.
Also,
take
a
minute
to
read
messages
carefully
before
clicking
on
a
link.
It won't put an end to new credit offers
Freezing your credit also won't eliminate the spam mail and prescreened offers you receive. Credit freezes are meant to prevent hard inquiries on your credit, such as lease applications or applying for a student loan. You can still expect to receive offers from credit card companies, insurance carriers and more.
Financial
institutions
you
already
have
a
relationship
with
and
debt
collectors
can
also
view
your
credit.
Under
special
circumstances,
so
can
the
federal,
state
and
local
government.
Credit monitoring companies like Credit Karma and Credit Sesame can still provide you with your up-to-date credit scores.
You'll still need good password hygiene
Even if your credit is frozen, you'll still need to exercise good password hygiene. Be sure not to use the same login information across multiple sites -- using the same login is a common tactic by cybercriminals.
If
keeping
track
of
your
passwords
becomes
overwhelming,
consider
paying
for
a
password
manager.
CNET
recommends
Bitwarden.
It won't protect your bank account information
Even if you freeze your credit, it's still your responsibility to protect your bank account information from scammers.
If
you
mistakenly
provide
any
account
numbers
or
login
information
to
cybercriminals,
contact
your
bank
immediately
and
change
your
password.
In the end, I'm glad I froze my credit
There are pros and cons to freezing your credit. But with no plans to open a new account anytime soon, it was worth it to me. I also feel safer after doing it. It's nice to know I have thrown a wrench into any cybercriminal's plans.
Sure,
the
spam
messages
keep
rolling
in.
But
I'm
fine
with
being
the
gatekeeper
of
my
financial
accounts.
I
make
a
habit
of
checking
my
bank
and
credit
card
statements
regularly.
Related Credit Advice