Why You Should Freeze Your Credit Today — Even If You Have Nothing To Hide
Written by
Angela Mae
Edited by
Rebekah Evans
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Freezing your credit might feel like a hassle, but it’s well worth it. According to the Federal Trade Commission (FTC), a credit freeze can protect you from identity theft, internet fraud and other cyber attacks. If your loved ones do it, it can also protect their personal finances.
“A credit freeze is one of the most effective ways to safeguard against financial fraud, especially in the wake of cyberattacks and data breaches,” said Susan Espinosa, vice president of member experience at Skyla Federal Credit Union. “If a hacker gains access to personal information, they won’t be able to open new credit accounts in your name as long as your credit is frozen.”
Learn why it’s good to freeze your credit and how to do it. Also needing to rebuild your credit? Here are eight steps you can take today.
Why Experts Suggest Freezing Your Credit
Freezing your credit doesn’t take much. And once you do it, you’ll get some much-needed peace of mind.
“In today’s digital world, most people have had their information exposed in some form. Freezing your credit adds a layer of protection and ensures that no unauthorized accounts can be opened in your name,” Espinosa said.
When you freeze your credit, you have to unfreeze it before applying for any new loans or credit cards. This minor inconvenience might make you think twice about taking on a new debt you shouldn’t have.
Plus, it can save you the stress — and time suck — of having to deal with identity theft or similar cyber crimes.
“Unraveling identity fraud can take months,” said Stu Bradley, senior vice president of risk, fraud and compliance solutions at SAS. “This is truly a case where an ounce of prevention is worth a pound of cure.”
Your Family Should Also Freeze Theirs
Anyone can be the victim of cyber attacks, but those over 60 years of age are targeted the most. According to an FBI report, fraud against the elderly rose by 14% in 2023.
Even minors can be targeted by scammers looking to open new credit lines in their name. A credit freeze can help.
“It’s absolutely worth considering proactively freezing not only your own credit, but also that of children and elderly parents,” Bradley said.
How To Freeze Your Credit
Don’t wait for a data breach or a scammer to take out a loan in your name. To freeze your credit, you just need to contact the three major credit bureaus — Experian, Equifax and TransUnion. Make the request online or via phone for fastest results. Done this way, it typically only takes about a day to freeze your credit, according to USA.gov.
Unfreezing your credit is just as easy.
“A credit freeze is free and you can lift the freeze at any time — typically within 24-48 hours — should you need to apply for credit,” Bradley explained.
If you do it online, it can take as little as an hour.
There’s Very Little Downside and Much To Gain
“The only downside to freezing credit is the small inconvenience of unfreezing it when applying for new credit. It takes just a few minutes to lift a freeze online or by phone,” Espinosa said.
But you’ll still need to be vigilant with any open accounts. A credit freeze may not block all activity there.
“Credit freezes do not affect credit scores or existing credit accounts,” Espinosa added. “Even with a freeze in place, it’s still important to monitor financial statements and credit reports for any suspicious activity.”
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