Credit freeze is cool way to fight identity theft

Herb Weisbaum • Profile • E-mail

I finally did it. This week I put a security freeze on my credit files at the big three credit reporting companies: Experian, Equifax and TransUnion. I know this won’t stop all identity theft, but it will make it harder for a thief who steals my personal information to get a credit card, open a bank account or start cell phone service in my name.

All three companies let you place the freeze online. You can also do it by mail. It was easy and took less than five minutes. I was even able to create my password/PIN code. I’ll need this if I ever want to thaw my account.

A security freeze tells the credit reporting companies I do not want them to release information from my file to anyone. Without access to my file, a lender is unlikely to grant credit to someone pretending to be me.

If I want to buy a car, rent an apartment or apply for a new credit card I'll need to use my  PIN code and pay $10 per credit bureau to temporarily thaw my account, but it seems a small price to pay for the added security.

“If anyone is worried about the prospect of identity theft scrambling their financial situation and messing up their lives, there is no better thing you can do than freeze your credit report,” says Joe Rideout with the advocacy group Consumer Action.

The price to place the freeze varies from state to state.  It ranges from free (for people in Colorado, Indiana, New Jersey, New York and South Carolina) to $20. Most states set the fee at $10. Right now, TransUnion waives the fee if you request a freeze online.

If you are the victim of identity theft — and can prove that with a police report — your freeze is free. And in 10 states, seniors can freeze their credit files for free.      

The charge to thaw an account temporarily or permanently varies from state to state.  Currently, TransUnion will unfreeze an account for free.

Benefits and downsides
Linda and Jay Foley have a security freeze on their credit files. The Foleys, who live in San Diego, were both victims of identity theft. They founded the Identity Theft Resource Center to help prevent this crime and help those hurt by it.

Free freeze A security freeze is free for anyone who is the victim of identity theft and can prove that with a police report. It’s also free to anyone 62 and older in: Florida, Illinois and Louisiana. And anyone 65 and older in: Georgia, Nevada, New Mexico, Oklahoma, Pennsylvania, Rhode Island and Washington. You can look up your state’s law regarding the price of a credit freeze at FinancialPrivacyNow.org Also: Things to consider when deciding whether to place a security freeze

Linda believes a credit freeze “has a lot of benefits.” Even so, she admits it “can be a little bit burdensome” in situations where you need an immediate credit check, such as buying a car or applying for credit.

Because I don’t have plans to do any of those things in the foreseeable future, a freeze works for me.

While a permanent thaw can take up to 3 days, a temporary thaw — to allow a specific company to access my file — can happen more quickly.  Fifteen states require a temporary thaw within 15 minutes if requested electronically. Experian and TransUnion tell me they normally process all temporary thaw requests in that time frame. Equifax says it hopes to have this quick online thaw capability in place for all 50 states by early next year.

What a security freeze does not do
A freeze does not stop creditors from reporting to the credit bureaus. So negative information, such as late payments, will still show up and could have costly consequences. A lender could find out about those late payments and bump up your interest rate.

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