Wednesday, September 20, 2017

Being Smart with $$ -- How to Protect Yourself by Freezing Your Credit


The Equifax breach has us all concerned that we could be the next victim of identity theft.  We can check our credit reports periodically but that only reveals a problem after it has happened.  We can purchase credit monitoring but that comes with a sticker price of as much as $300 per year.  Or we can freeze our credit preventing anyone from applying for loans under our names which manages the problem before it occurs. Freezing your credit comes with inconveniences as you will need to unfreeze your credit files each time you want to apply for a mortgage, car loan or new credit card and it may even cost a fee to freeze and unfreeze your files (varies by state).  Additionally, you will need to plan ahead by a couple of days when applying for a loan to make your credit available to legitimate companies.  But if you consider that credit monitoring costs hundreds of dollars and you might not apply for credit more than once per year, perhaps in this age of cyber insecurity, it’s time to take the more aggressive approach. (Fees indicated are for Massachusetts residents and vary by state.  Victims of identity theft may be able to request a freeze without charge but documentation is required.)

Step by step instructions to freeze your credit.  This process must be completed with each of the 3 credit bureaus:

Page 1:  Fill in personal information including address and social security number plus a code displayed that shows you are not a robot.
Page 2:  Check the box:  Place a security freeze
Page 3:  Submit – to request the freeze
Page 4:  BE SURE TO PRINT THE PDF FILE THAT IS NOW OFFERED.  It contains a 10-digit PIN that will be required to unfreeze your credit in the future.
Note:  The Equifax website indicated that a $5 fee is required to initiate a freeze and to create a temporary lift or permanent removal of the freeze.  However, no fees were requested during the freezing process.  

2. Experian


Click: Add a security freeze
Click: Apply online
Next page:  Fill in your personal information including address and social security number.
Next page:  You will be required to submit credit card information to pay a $5 fee for this process.
Next page:  You will be asked security questions, such as what bank you have used for a certain product, to confirm your identity.
Finally, a page will be displayed with your PIN needed to unfreeze the account in the future.  You can print this page but BE SURE TO NOTE THE PIN NUMBER.
Note:  The Experian website indicates that a $5 fee will be required to create a temporary lift of the freeze or to remove the freeze entirely.

3. TransUnion

Page 1:  Register – to create an account.
Page 2:  Fill in your personal information including address and social security number and click Continue.
Page 3:  Create a user name and password and fill in additional information. Agree to terms and click Continue.
(It may next ask you to confirm your current address.)
Page 4:  Click “Add Security Freeze.”
Page 5:  Accept terms and continue.
Page 6:  Provide credit card information to pay a $5 fee for this process and click Continue.
Page 7:  Create a PIN and click Continue.
Page 8:  You will receive a confirmation of your credit freeze.  BE SURE TO NOTE YOUR PIN to be able to unfreeze your credit in the future.  
Note: The TransUnion website indicates that a $5 fee will be required to create a temporary lift of the freeze but a full removal of the freeze is free.

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