What is a credit freeze?

by augustine , in category: Banking and Credit , 9 months ago

What is a credit freeze?

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1 answer


by mazie , 9 months ago


A credit freeze, also known as a security freeze, is a measure taken to protect your personal and financial information from unauthorized access. It allows you to restrict access to your credit report, preventing potential lenders or service providers from viewing your credit history.

When a credit freeze is in place, it becomes difficult for identity thieves to open new accounts or take out loans in your name since most creditors won't extend credit without reviewing the applicant's credit report. This can be especially useful if you suspect your personal information has been compromised or if you want to proactively secure your credit.

To initiate a credit freeze, you need to contact the credit reporting agencies (Equifax, Experian, and TransUnion) and request them to freeze your credit. Once frozen, you will be provided with a unique personal identification number (PIN) which you can use to temporarily or permanently lift the freeze when necessary, such as when applying for new credit or loans.