Did someone steal your identity, or are you looking for ways to protect yourself before it happens? One of the most effective steps consumers can take is freezing their credit.
A credit freeze prevents new credit accounts from being opened in your name, even if someone has access to your personal information. It is especially useful for people who have experienced identity theft, lost a wallet, or been affected by a data breach.
A credit freeze is free to place and free to lift. It does not affect a person’s credit score, is available to anyone for any reason, and remains in place until the consumer chooses to remove it.
To freeze your credit, contact all three major credit bureaus: Equifax, Experian, and TransUnion. If you later need to apply for credit, such as buying a car or opening a new credit card, you can temporarily lift the freeze with the credit bureau a lender uses. Once the transaction is complete, the freeze can be reinstated.
Consumers looking for additional protection may also consider placing a fraud alert on their credit file. Fraud alerts are free and require lenders to take extra steps to verify a person’s identity before approving new credit.
There are several types of fraud alerts available, including initial fraud alerts, extended fraud alerts, and active-duty alerts. The right option depends on an individual’s situation and level of risk.
Staying informed and taking preventive steps can help reduce the risk of identity theft and limit long-term financial damage.
More information and consumer resources are available at ftc.gov/IDTheftWeek.
