As a personal finance editor covering identity theft, I knew freezing my credit would make it harder for cybercriminals to open a new account in my name. But I still went back and forth on freezing my credit before I actually did it because it also adds a few extra steps for me to do the same.
When you freeze your credit, you have to manually unfreeze or “thaw” it with Experian, TransUnion and Equifax whenever you want to apply for a new credit card, mortgage or car loan.
The process of freezing your credit isn't straightforward either. It involves signing up for individual accounts with each credit bureau and freezing your credit manually online, by phone or by mail. Online is the fastest option.
But there are two benefits that ultimately sold me on it. First, freezing your credit is absolutely free. And second, I get peace of mind in knowing I've neutralized a major tool in identity thieves' playbook.
Why I froze my credit reports
Data breaches happen more often than you think, across multiple industry sectors. And chances are, your data has been compromised at least once.
Last year, Ticketmaster and AT&T reported data breaches that affected millions of customers. And hacks of background search company National Public Data and UnitedHealth Group subsidiary Change Healthcare also compromised the personal data of hundreds of millions of people. But if you're worried about new credit accounts being opened in your name, a credit freeze can help.
I've noticed an uptick in the number of scam messages I receive on my phone and in my email inbox over the past year. Most are easy enough to sniff out, but some were fairly well researched.
I've received a variety of messages asking me out for ribs and even offering me new job opportunities. The barrage of messages, phone calls and emails makes me think that at any given moment — while distracted or in a rush to get back to my desk for my next meeting — I may fall victim to a scam that could lead to identity theft.
Freezing my credit is one of the best ways to protect your data and money, but it's not foolproof. Fraudsters and identity thieves might still gain access to my personal information via existing accounts. I can limit the damage, however.
Read more: 5 Signs Your Personal Data Is on the Dark Web, and What You Can Do About It
How I froze my credit with TransUnion, Equifax and Experian
When you freeze your credit, you'll need to do it with each of the three main credit bureaus. That requires setting up accounts with each — a process that took about 30 minutes online. Generally, you're asked for the same information: your name, birthday and the last four digits of your Social Security number. You then need to complete two-factor authentication via text or email.
TransUnion and Equifax have dedicated tabs on your dashboard for freezing your credit after you create an account. With a few clicks, I was all set.
Experian makes this option a bit more difficult to find. After some clicking around, I found two ways to activate a free security freeze.
You can hover over “credit” on your dashboard and click Experian Credit Lock — Experian's paid offering that works similar to a credit freeze but locks your credit report instantly, among other features. On that page, you'll see the free “security freeze” option.
You can also scroll down to the bottom of the page while signed in and click Experian Credit Lock to get to the same page. All three credit bureaus will confirm your credit freeze via email.
If you don't want to set up online accounts, you can call each credit bureau to freeze your credit. Here are the numbers for each:
- TransUnion: 800-916-8800
- Equifax: 888-298-0045
- Experian: 888-397-3742
After you've requested a credit freeze, each bureau must freeze your credit within one business day. When you need to unfreeze your credit, Experian, TransUnion and Equifax are required to thaw your credit within an hour. By mail, it may take up to three business days to freeze and unfreeze your credit.
Freezing your credit won't solve all of your identity theft worries
Setting up the credit freeze was simple enough. But I'm not going to tell you that having your credit frozen is convenient. Here are some downsides to consider.
You'll have to unfreeze your credit every time you open a new account
Freezing your credit prevents cybercriminals or identity thieves from opening new credit accounts in your name. But it also stops you. To open a new credit account, you'll need to log into your accounts or contact each of the three credit bureaus and temporarily unfreeze your credit.
If you're thinking of applying for a new credit card, looking for your first home or thinking of taking out a new car loan, it's probably best to wait until after you've opened the account before freezing your credit.
False sense of security
Freezing your credit is a good step toward protecting your identity, but it can still be stolen.
You may consider signing up for an identity theft protection service. Individual plans typically start from $7 to $15 depending on the level of financial and identity monitoring you want. With an identity theft protection plan, you can monitor your credit, bank accounts and the dark web for your or your family's personal identifiable data, or PII.
Alternatively, you can take advantage of free tools at your disposal. Review your monthly credit card and bank statements. Also look at your medical claims history online and on your credit report. You can download your free credit report on AnnualCreditReport.com.
It won't stop spam messages
If scammers have your phone number or email, you won't be able to stop attempts to scam you out of money in your existing accounts.
It's best to block telephone numbers and email addresses from unrecognized senders every time you receive a strange message. Also, take a minute to read messages carefully before clicking on a link.
It won't put an end to new credit offers
Freezing your credit also won't eliminate the spam mail and prescreened offers you receive. Credit freezes are meant to prevent hard inquiries on your credit, such as lease applications or applying for a student loan. You can still expect to receive offers from credit card companies, insurance carriers and more.
Financial institutions you already have a relationship with and debt collectors can also view your credit. Under special circumstances, so can the federal, state and local government.
Credit monitoring companies like Credit Karma and Credit Sesame can still provide you with your up-to-date credit scores.
You'll still need good password hygiene
Even if your credit is frozen, you'll still need to make sure you have good passwords. Be sure not to use the same login information across multiple sites — using the same login is a common tactic by cybercriminals.
If keeping track of your passwords becomes overwhelming, consider paying for a password manager. CNET recommends Bitwarden.
It won't protect your bank account information
Even if you freeze your credit, it's still your responsibility to protect your bank account information from scammers.
If you mistakenly provide any account numbers or login information to cybercriminals, contact your bank immediately and change your password.
In the end, I'm glad I froze my credit
There are pros and cons to freezing your credit. But with no plans to open a new account anytime soon, it was worth it to me. I also feel safer after doing it. It's nice to know I have thrown a wrench into any cybercriminal's plans.
Sure, the spam messages keep rolling in. But I'm fine with being the gatekeeper of my financial accounts. I make a habit of checking my bank and credit card statements regularly.
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