A simple guide to increasing financial security and minimizing your risk of identity theft

It was another brutally cold February day when my son came bursting through the front door; “They’re here! They’re here,” he yelled before disappearing back outside just as quickly as he’d arrived. My daughter shoved past me to run outside to join the Grandparent welcoming party. As the four of them migrated into the warmth of our home, my mom leaned in for a hug with her purse dangling from one arm and holding her phone up with the other hand, while elevator music played through the speaker. With a warm smile on her face she hugged me while saying through chilled frustration, “Hey honey!! Someone is trying to open a payday loan with my information.” She was on the phone with her credit monitoring company attempting to determine if there were any next steps she needed to take. Luckily, she had credit monitoring and a credit freeze in place that worked to mitigate easy access for the identity thieves.

Just 3 months earlier, right at the beginning of the Christmas shopping season, I had decided to put a credit freeze in place for my entire family, including our three minor children. This decision was spurred by answering a phone call from an unfamiliar number.

“This is the Chattooga County Sheriff’s Department. There’s a warrant for your arrest due to missed jury duty,” the caller claimed, requesting my personal details to ‘resolve’ the issue. Panic set in.

At first, I almost fell for it. But, I had recently attended a seminar on financial fraud and scams. I stopped answering his questions, I questioned him, cross-checked the sheriff’s department contact information, and realized it was a scam. He hung up the moment he sensed my skepticism.

Though no financial harm was done, I wasted hours verifying my records, calling the actual Sheriff’s Department, checking with the courthouse, and monitoring my credit for weeks. Worse, I felt embarrassed and vulnerable for nearly believing it.

I suddenly and deeply understood how easily someone can feel enough distress, or conversely excitement, and unwittingly become the next victim of identity theft, scams, and fraud. Then, the shame and embarrassment that follows that leads people to hide the theft or shrug it off rather than seek help or repair.

So, what can you do to protect yourself? One of the simplest yet most effective steps is freezing your credit. It’s a proactive way to safeguard your personal information and prevent unauthorized access. Let’s take a closer look at how it works and why it matters.

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Why Freeze Your Credit?

A credit freeze, also called a security freeze, is a simple way to protect against identity theft by preventing unauthorized access to your credit report, making it harder for fraudsters to open accounts in your name. It does not affect your credit score or existing accounts, allowing you to use your financial services as usual. Thanks to consumer protection laws, freezing and unfreezing your credit is free with all three major credit bureaus. Most importantly, it provides peace of mind, especially for those who have experienced or worry about identity theft.

A credit freeze, which is free, should not be confused with a credit lock, which is typically not necessary and part of a paid service.

How to Freeze Your Credit

Freezing your credit is a simple process and can be done online, by phone, or via mail. Here’s a step-by-step guide:

Contact Each Credit Bureau

You need to place a freeze with all three major credit bureaus individually:

• Experian: www.experian.com or call 1-888-EXPERIAN (1-888-397-3742)
• Equifax: www.equifax.com or call 1-800-349-9960
• TransUnion: www.transunion.com or call 1-800-680-7289

Freezing your credit online

The easiest way to freeze and thaw your credit is to create an online account on each of the three credit bureaus websites. You will be required to provide some personal information to verify your identity. Once you’ve created your account, you can apply the credit freeze to that credit bureau. Each credit bureau has their credit freeze located in a slightly different area of their website. 

–Experian: Hover over the Person icon at the top right corner of your account, then select “Help Center”. Under “Quick Actions” select “Manage security freeze”

–Equifax: On the left side of the page, after you’ve logged in, under the heading “Your Identity”, select “Freeze”

–TransUnion: On the dashboard of their Service Center website, select “Credit Freeze”.

Freezing your credit via phone

Each bureau will ask for personal information, such as your full name, Social Security number, date of birth, and address. They may also request additional verification documents.

Upon successfully freezing your credit over the phone, you will receive a unique PIN or password. Keep this information secure, as you will need it to lift or temporarily thaw the freeze when necessary.

Temporarily Lift or Remove the Freeze as Needed

If you need to apply for new credit, you can temporarily lift the freeze online by selecting “Manage Credit Freeze” on each of the credit bureau websites, or by phone using your PIN. Some bureaus allow you to schedule a temporary thaw for a specific period or for a designated creditor.

Credit Freeze for minors

Freezing a minor’s credit is a proactive step to prevent identity theft. Since children typically have no credit history, a freeze ensures that no fraudulent accounts can be opened in their name.

Although a little more time consuming, it’s still not a complicated task and can really protect your minor children. In fact, children are some of the most vulnerable, with recent studies suggesting that 1 in 50 children have their identity stolen every year. Therefore, it can be absolutely worth the process. Take it one step at a time and practice your patience.

• Step 1: Gather Necessary Documents
  You will need to prove your children’s identity and your own identity.
  • Your government-issued ID (like a driver’s license)
  • Proof of current address (like a utility bill)
  • Birth certificate for your child and you
  • Social Security card for your child and you
• Step 2: Make copies of all documents (Do NOT send originals)
  Make at least 3 copies of each of the listed documents above, one copy for each credit bureau.
• Step 3: Complete the forms for each credit bureau
  • Experian- Visit Experian’s Child Identity Theft Protection website. Complete & print the online form “Add or remove a security freeze for a minor”
  • Equifax- Complete & print this Minor Security Freeze Request Form
  • TransUnion- Send a written request for a “protected consumer freeze” on your child’s file. (Mail to: TransUnion P.O. Box 380 Woodlyn, PA 19094). Additionally, you can check to see if your child already has a credit report by completing this Child Identity Theft Inquiry.
• Step 4: Mail the forms and copies of the required documents to the respective credit bureau using the mailing addresses listed on each form.
• Step 5: Practice your patience. It can take 10-15 days to receive a response and it will be in letter form. Once received, file all correspondence from each credit bureau in a safe place, including confirmation letters and how to lift the freeze in the future.

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Final Thoughts

Freezing your credit is a simple yet powerful tool for protecting your financial identity. While it does require some minimal effort to lift the freeze when you need to apply for new credit, the security benefits far outweigh the inconvenience. In today’s digital world, taking this extra step can help keep your financial future safe and secure.

Additionally, regularly checking your credit report can alert you to anything out of the ordinary in time to report and dispute it. Thanks to a Covid-era policy passed by Congress, you can check your credit report with all three bureaus weekly now at annualcreditreport.com.

Have you frozen your credit before? Share your experience in the comments below! And, as always, please reach out. I love talking with you all.

Thank you for being a part of this journey. Let’s create something beautiful together!

For any inquiries, please contact:

Shannon Himes,
Owner/Founder, Financial Compass Coaching
shannon@financialcompasscoaching.com
http://www.financialcompasscoaching.com