Now you can freeze your credit report for free

Data breaches and the theft of identity are not ridiculous. According to Javelin Strategy & Research, identity fraud reached a record high in 2017, with 16.7 million victims in the United States. Data breaches also reached a new high, with 1,579 reported violations affecting nearly 179 million personal and financial records. (See also: Have I been hacked? Find out if the Equifax violation affects you.)

Freezing your credit report is one way to prevent identity thieves from stealing your information. A credit freeze restricts access to your credit to your existing creditors and can only be waived at your request, making it more difficult for someone to obtain a credit in your credit. name fraudulently.

Now, thanks to the new federal law that will come into effect on September 21st, you can freeze your credit by protecting your personal and financial information for free.

The new law also extends the duration of fraud alert in your case from 90 days to one year.

Credit Gel vs Surveillance

"Think of a credit freeze as a state-of-the-art home security system that protects bad guys against credit monitoring. window and left with your big-screen TV, "said CreditCards.com industry analyst Ted Rossman. "In the latter case, the damage has already been caused, so the alert is not very useful."

As a result of the Equifax Data Violation (EFX) in September 2017, one in five Americans chose to freeze their credit, up to $ 1.4 billion in credit freeze fees.

"In the past, a credit freeze or security freeze cost between $ 3 and $ 10 per credit bureau," says Ashley Dull, editor of CardRates.com. "Freezing your credit on all three desks could cost you up to $ 30, with additional fees to unlock your credit."

Previously, the costs of freezing or unblocking credit reports were determined at the state level. The new law, called the Economic Growth Act, Lightening the Regulation and Protecting the Consumer, removes nationally imposed charges on the three major credit bureaus – Equifax, Experian and TransUnion. Consumers can also "defrost" their files, temporarily or permanently, at no cost.

What's new for the freeze of credits

"This legislation is a step in the right direction to protect the identity of consumers," said Dale Dabbs, President and CEO of EZShield + IdentityForce. "It's essential to have open access to your credit reports, while designating those you want to see."

The law also includes a provision allowing parents to freeze free credit reports for children aged 16 and under. Identity theft of children can be easily overlooked if parents do not monitor the warning signs.

"If you're not vigilant about your own credit, chances are you're not thinking about stealing your toddler's identity and accumulating fraudulent charges," he says. Rossman. "This could potentially go unnoticed for many years until he or she grows up and starts asking for credit, only to find a big mess."

More than one million children have been victims of identity theft in 2017, resulting in $ 540 million costs for their families. Sixty percent of the victims of child identity theft were targeted by someone they knew.

"These scenarios are a good reason to freeze your kids' credit record, keeping their information secure at no cost to unlock it when they're old enough to start using credit," says Dull. (See: Protect your children against identity theft.)

How to freeze your credit for free

Freezing your credit file for free is simply to contact each of the three credit bureaus and ask for a freeze. The three offices allow you to freeze your credit online:

You can also start a freeze over the phone.

When you choose to freeze your credit, you must provide your name, social security number, date of birth, address and phone number. If you freeze your report online, you will also be asked to create an account using your email address and a unique password. From there, you just have to verify your identity and you are defined.

Once your credit is frozen, you will have to make another request to unlock it, but again, it will not cost you anything. Just be sure to take into account the timing of the thaw of your credit report.

Mr. Rossman says the new law requires that credit freezes be lifted in less than an hour, but he recommends giving you a longer window if you plan to apply for credit soon after. If you buy a car, for example, it suggests you lift three business days before you apply for a loan to avoid the risks of being taken in anticipation of funding approval because your credit file is inaccessible.

Another thing to note: the new law extends short-term fraud alerts to one year, compared to the old 90-day limit. By placing a fraud alert on your credit report, lenders must contact you to verify your identity when they receive a credit application on your behalf.

The bottom line

While free credit freezes are not an impenetrable barrier against identity theft, they can help keep your information in the wrong hands. You can also strengthen your defenses by checking your credit regularly, reviewing bank and credit card statements for suspicious activity, and setting up bank and credit card alerts to keep you informed of new transactions. The more proactive you are in protecting your information, the more likely you are to prevent identity theft. (For more information, see: How to read a consumer credit report.)