The Credit Freeze

At Modera Wealth Management, we take your financial security seriously and have safeguards in place to protect your financial information.  Despite precautions, we are all at risk of identity theft, data-breaches, and having our credit reports accessed without our permission.  An estimated 15 million people have their identity stolen each year.  Resolving identity theft crime can be expensive, frustrating and time consuming.  For these reasons, we strongly urge you to consider “freezing your credit.”  In the event your private information is compromised, freezing your credit is the best protection against having someone incur debt in your name.  If you have children, consider freezing their credit as well.  Minors are easy prey because they are not actively monitoring their credit.  This document explains what it means to freeze your credit, details the process of doing so, and answers some frequently asked questions.

What is a credit freeze?

Also known as a security freeze, this tool lets you restrict access to your credit report, which in turn makes it more difficult for identity thieves to open new accounts in your name. That’s because most creditors need to see your credit report before they approve a new account. If they can’t see your file, they likely will not extend the credit.  This is the most effective way to prevent someone from opening an account in your name.

Does a credit freeze affect my credit score?

No. A credit freeze does not affect your credit score.

A credit freeze also does not:

prevent you from getting your free annual credit report.

keep you from opening a new account, applying for a job, renting an apartment, or buying insurance. But if you’re doing any of these, you’ll need to lift the freeze temporarily, either for a specific time or for a specific party, say, a potential landlord or employer. The cost and lead times to lift a freeze vary, so it’s best to check with the credit reporting company in advance.

prevent a thief from making charges to your existing accounts. You still need to monitor all bank, credit card and insurance statements for fraudulent transactions.

How do I place a freeze on my credit reports?

Contact each of the nationwide credit reporting companies:

Equifax — 1-800-349-9960, equifax.com

Experian — 1‑888‑397‑3742, www.experian.com

TransUnion — 1-888-909-8872, transunion.com

You’ll need to supply your name, address, date of birth, Social Security number and other personal information. Fees vary based on where you live, but commonly range from $0 to $20.  After receiving your freeze request, each credit reporting company will send you a confirmation letter containing a unique PIN (personal identification number) or password. Keep the PIN or password in a safe place. You will need it if you choose to lift the freeze.

How do I lift a freeze?

A freeze remains in place until you ask the credit reporting company to temporarily lift it or remove it altogether. A credit reporting company must lift a freeze no later than three business days after getting your request. The cost to lift a freeze varies by state ($0 to $20.)  If you opt for a temporary lift because you are applying for credit or a job, and you can find out which credit reporting company the business will contact for your file, you can save some money by lifting the freeze only at that particular company.

What’s the difference between a credit freeze and a fraud alert?

A credit freeze locks down your credit. A fraud alert allows creditors to get a copy of your credit report as long as they take steps to verify your identity.  For example, if you provide a telephone number, the business must call you to verify whether you are the person making the credit request. More importantly, fraud alerts are temporary and must be renewed every 90 days.  A credit freeze provides permanent protection until it is lifted at your request.

Please do not hesitate to call us if you have additional questions or concerns or if you need assistance in implementing a credit freeze for yourself or your family.