Freezing Your Credit: Is It the Right Choice for You?
If you ever have been a victim of identity theft or are in a position where you suspect you could be (i.e. a reported data breach), you might be considering freezing your credit account.
Placing a security freeze on your account restricts access to your credit report. Under these circumstances, it becomes difficult for new accounts to be opened under your name since most creditors will want to see your credit report before approving new credit. If your credit score cannot be obtained, approval of a new account is less likely.
When your account is frozen, your credit score will not change and you are still entitled to a free annual credit report.
Placing a security freeze on your account should protect and not harm your credit, however, you might want to consider a few points before initiating this process:
- It Doesn’t Actually Prevent Credit Theft – If you freeze your credit report, the only detail protected is your credit score. Any open accounts can still easily be hacked into and your private information can be stolen. Employees of lenders will also still have access to your credit report. For these reasons, you should continue to monitor your bank and credit card statements regularly for fraudulent activity.
- You Can’t Build Credit – A frozen credit report means you can’t open new accounts or apply for a loan. In this case, you credit report is inactive and you are unable to build credit. Although you can temporarily unfreeze your account if you wish, the process can take up to three business days and there is an associated fee that varies according to state.
- It Can Be a Huge Hassle – Anytime you need to make an adjustment to an unrelated account, such as change a cell phone plan or switch your credit card, you will need to unfreeze your credit account. Certain processes require a credit check, which is impossible if your account is frozen. If you are planning on doing things such as renting an apartment, applying for insurance or opening a new account, you can find out which credit reporting company the business will be using and save money by temporarily lifting the freeze from that specific company.
- Are There Other Options Available? Do you really need to freeze your account or are there other steps you can take to protect yourself? For example, are you absolutely certain your personal information has been compromised? If not, you may decide to simply monitor your accounts for unusual activity before taking further action. Or, in the case of a stolen wallet, it may be more appropriate to place a fraud alert on your account to notify you if someone is trying to access your credit file.
Freezing your credit account is not a decision you should make lightly. Take the time to consult with professionals who will help you make an informed decision which provides protection while continuing to work towards your long-term financial goals.
Contact Great American Credit Repair Company today at 1-800-491-6578 and let us show you how you gain the financial freedom you deserve.
About Great American Credit Repair Company
Great American Credit Repair Company is a highly recommended credit repair company and a FICO Pro Certificate holder, with credentials from the National Association of Credit Services Organizations. Great American Credit Repair Company offers the only Money Back, Triple Result Warranty in the industry because we are confident we can deliver the results you need.
How does Great American Credit Repair work to restore your credit? Approximately 79% of all credit reports contain errors and aren’t verifiable. At Great American Credit Repair Company, we know most people don’t earn the credit score they deserve and will investigate every negative aspect of your credit report every single month to make sure you get the highest credit score possible.
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