At Modera Wealth Management, we believe safeguarding your financial life includes helping protect your identity and credit information.
Despite precautions, we are all at risk of identity theft, data breaches, and having our credit information accessed without permission. Recent reports from the Federal Trade Commission show that millions of identity theft cases are reported each year, and resolving them can be costly and time-consuming. For these reasons, we strongly encourage you to consider freezing your credit.
In the event your personal information is compromised, a credit freeze is one of the most effective ways to help prevent someone from opening new accounts or incurring debt in your name. If you have children, consider freezing their credit as well. Minors can be especially vulnerable because their credit is typically not being actively monitored. This document explains what it means to freeze your credit, outlines the process, and answers some frequently asked questions.
What is a credit freeze?
Also known as a security freeze, a credit freeze restricts access to your credit report, making it more difficult for identity thieves to open new accounts in your name. Most creditors need to review your credit report before approving new credit. If they cannot access your file, they are unlikely to extend credit.
Does a credit freeze affect my credit score?
No. A credit freeze does not affect your credit score.
A credit freeze does not:
- prevent you from obtaining your free annual credit reports.
- prevent you from opening a new account, applying for a job, renting an apartment, or purchasing insurance. However, you may need to temporarily lift the freeze for a specific period of time or for a specific party, such as a landlord, employer, or lender.
- prevent fraudulent charges on your existing accounts. You should still monitor bank, credit card, and insurance statements regularly for suspicious activity.
How do I place a freeze on my credit reports?
Contact each of the nationwide credit reporting companies:
Equifax — 1-888-298-0045 www.equifax.com
Experian — 1‑888‑397‑3742, www.experian.com
TransUnion — 1-888-909-8872, www.transunion.com
You will need to provide your name, address, date of birth, Social Security number, and other identifying information. There is no cost to place or lift a credit freeze. After receiving your request, each credit reporting agency will provide instructions for managing your freeze. Most consumers now manage freezes through online accounts rather than PIN‑only systems.
How do I lift a freeze?
A credit 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 receiving your request. If you request a lift online or by phone, the credit bureau generally must lift the freeze within one hour. Requests submitted by mail may take longer. There is no cost to lift or remove a freeze.
If you choose a temporary lift because you are applying for credit or a job, and you know which credit reporting company the business will use, you may save time by lifting the freeze only with that particular company.
What’s the difference between a credit freeze and a fraud alert?
A credit freeze restricts access to your credit report, making it more difficult for new accounts to be opened in your name. A fraud alert, by contrast, allows creditors to access your credit report as long as they take additional steps to verify your identity, such as contacting you directly before extending credit.
Initial fraud alerts last one year and can be renewed. Extended fraud alerts, which are available to confirmed identity theft victims, remain in place for seven years. A credit freeze remains in place until you choose to temporarily lift or permanently remove it.
Please do not hesitate to contact us if you have additional questions or concerns or if you need assistance in implementing a credit freeze for yourself or your family.
