Credit Report: Reasons to Freeze It

Identity theft cases have become as common as dirt. The crisis US economy in at the moment triggers the rise of credit crime rate. Crooks do not even have to invent new more sophisticated ways to steal credit cards or identities themselves. Credit consumers struck by credit market crunch do not think much about protection against thieves now.

But now taking security measures against credit fraud is more important than ever. Say you discovered that you fell victim to identity theft. Do you have an instant action plan? Do you know what to do in order to minimize the grave consequences the fraud can bring about? Credit report freeze is the answer.

Your credit report is a treasury of information on all your credit moves and financial standing. Your current and past loans, balances you carry, your payment history, credit score, etc. - all this data can be found on your credit report. If this info falls among thieves, your credit status and reputation could be ruined. ID theft can turn a customer with excellent credit owning best cash back and low rate cards into a bankrupt who can qualify for secured cards only. Scammers can open new credit accounts in your name and use your funds to make all sorts of purchases. What happens when you freeze your report?

Credit report freeze locks down your credit file and no one, even you, cannot access it without providing a PIN. No denial this is a surefire way to protect yourself from fraudsters. But you should keep in mind that lenders will also be denied access without your permission, if you decide to shop for or apply online another credit card deal or loan, get a new job, or rent an apartment. In this case you can lift the freeze for a while, so that lender can check your report and make a decision.

Think about freezing your report if:

• You have become a victim of ID theft
• You credit card number or SSN has been stolen
• Scammers hacked your mail
• You want to prevent identity theft.

How can you put a freeze on your report? You just need to contact all three major credit bureaus (Equifax, TransUnion and Experian) and tell them about your intention to freeze your report. Send a request in writing.

You will have to provide the bureaus the following persona information: your full name, SSN, current address with a proof (a copy of your utility bill will do), date of birth, and a copy of valid identifying documents. Send copies, not originals. You will not get your letter with documents back. Use certified mail to send your letter.

This is a pay service, but a rather cheap one. You can pay with a credit card or check. The cost of the service varies from state to state. As a rule the cost ranges from $5 to $20. Victims of ID theft can get a report freeze free of charge. But they will have to provide a proof first (a copy of police report, for instance). In some states seniors of a certain age can get a credit report freeze for free.

After a credit reporting agency gets your request letter and puts a freeze on your file, they send you a confirmation and a PIN that you will need in case you decide to unfreeze the report or temporarily lift the freeze. As a rule, the freeze lasts until you unlock it. But according to some states' laws the bureaus remove the freeze after 7 years.

Credit report freeze is not a panacea for ID theft, but it significantly reduces the risk of your FICO score and credit report damage and saves your money. Your credit score will be safe and sound and you will keep on taking advantage of using best credit cards for you.