Credit Freeze

[AvaMommy]

I have read multiple forums via google that touches on freezing your credit report; however, how beneficial is it? What is its purpose overall?

[p-]

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@AvaMommy wrote:

I have read multiple forums via google that touches on freezing your credit report; however, how beneficial is it? What is its purpose overall?

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It is intended as a defence against identity theft in case of a breach.  Let's say for example you left your purse on a bus, and your ss card and all of your information was in there.  After calling your credit card companies and bank, your next move would be to go online and freeze your credit.  Essentially, what a credit freeze does is prevent anyone from pulling your credit.  You pay a fee (sometimes waived if you have a police report) and your file gets locked down, with a password.  

Should you want to apply for new credit, yuo first have to "thaw" your file with your password and a small fee to allow credit pulls, then lock it again after.  Anyone attempting to apply for credit under your name will not be able to, as they haven't thawed it.  This will prevent most types of identity theft.

Many people go ahead and pay the fee to freeze their credit even before a breach, just in case.  There is an additional level of steps involved whenever you want to use it, and of course a debate about whether it is necessary. 

[AvaMommy]

Awesome Thanks!!

[DeadSpider]

I was thinking of freezing as well, it's $10 I think for each CR and $10 to unfreeze. 

So every time you app for credit you'll pay $10 for temporary lift.

[AvaMommy]

I deally when you "freeze" you keeo the score you have. What if you are reparing credit and there are deletions that occur. Does it stay on since you are freezing it? Can CAs still access your info etc?

[pizzadude]

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@AvaMommy wrote:

I deally when you "freeze" you keeo the score you have. What if you are reparing credit and there are deletions that occur. Does it stay on since you are freezing it? Can CAs still access your info etc?

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Freezing your reports does not freeze your FICO score.     Accounts / Balances / late payments, etc will continue to be factored into your score regardless of whether your CRs are frozen.

[p-]

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pizzadude wrote:  Freezing your reports does not freeze your FICO score.     Accounts / Balances / late payments, etc will continue to be factored into your score regardless of whether your CRs are frozen.

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Exactly.  It only prevents new credit applications.  Not new accounts.  So if your power bill went to collections it would still pop up.  Any credit limit changes, payment history, utilization, etc. will show and score as normal.  

[jsucool76]

Some people here also do this in order to try to force a creditor to pull a different report than they normally do. For instance say CreditCards R' Us pulls TU, but I want them to pull EX, by freezing my TU and EQ, they MIGHT pull EX, or they could just flat out deny you with no pull. 

[Shogun]

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@p- wrote:

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pizzadude wrote:  Freezing your reports does not freeze your FICO score.     Accounts / Balances / late payments, etc will continue to be factored into your score regardless of whether your CRs are frozen.

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Exactly.  It only prevents new credit applications.  Not new accounts.  So if your power bill went to collections it would still pop up.  Any credit limit changes, payment history, utilization, etc. will show and score as normal.  

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+1  Only keeps new credit from being opened.  Does not stop any kind of reporting from OCs or CAs.