Credit File Security Freeze
After the 2017 Equifax breach of 143 million credit files, you have a 50% or better chance that your financial information was leaked. What should you do? Thanks to a law passed in May 2018, all credit bureaus are required to allow you to freeze your file without any cost (previously this was $10 per bureau).
Read more about the huge benefits of security freezes and the new "Ice Age". The credit bureaus profit by selling your information to their customers (banks, escrow companies, car dealerships). You are not their customer; you are the product they are selling!
No Impact to FICO Score
The freeze does not freeze your FICO score, which will continue to fluctuate as normal. This does not affect your use of credit cards that are already issued. Once the freeze is in place, nobody can pull your credit history without a unique 10-digit PIN sent to you via postal mail. If you (or anyone) requests your credit report, it will be blank.
How to Temporarily Thaw
On the infrequent occasion when you need to apply for credit (new card, new house, new vehicle), you will need to temporarily "thaw" your security freeze for a few days while the bank, escrow, or dealership runs a credit check. That's it!
Security Freeze vs Security Lock?
Credit bureaus are not happy about freezes as it prevents them from profiting on your information. Resist the marketing temptation from companies to convert your security freeze (federally protected by law) into a security lock or security monitoring (like LifeLock)! Ensure you have a deadbolt for your credit (freeze) not just a passive monitor.
Innovis and ChexSystems are two lesser-known credit reporting agencies used by mobile carriers and banks, respectively. Federal law allows all Americans to review their credit report COMPLETELY FREE. Previously, this was permitted once a year, but post-pandemic this program was extended to free reports WEEKLY.