How to freeze your credit

If you are worried about identity theft, a credit freeze might be the best free tool you have never used. It tells the three major credit bureaus to lock your credit file. Once it is frozen, most lenders cannot pull your credit report. That means a thief cannot open a new credit card or loan in your name, even if they have your Social Security number.

The good news is that a freeze is completely free. A law called the Economic Growth, Regulatory Relief, and Consumer Protection Act made it free for everyone in 2018. You can freeze and unfreeze your credit as many times as you need to, also for free.

Here is how to do it, step by step.

STEP 1: CONTACT ALL THREE CREDIT BUREAUS

You need to freeze your credit at each bureau separately. The three bureaus are Equifax, Experian, and TransUnion. Each one has its own website and phone number.

Equifax: equifax.com or 1-800-349-9960 Experian: experian.com or 1-888-397-3742 TransUnion: transunion.com or 1-888-909-8872

You can do it online, by phone, or by mail. Online is usually the fastest.

STEP 2: CREATE AN ACCOUNT OR ANSWER VERIFICATION QUESTIONS

Each bureau will ask you to verify who you are. You may need to provide your name, address, date of birth, and the last four digits of your Social Security number. Online, you may be asked to create a free account. Keep your login information somewhere safe.

STEP 3: REQUEST THE FREEZE

Once you are verified, simply request a security freeze. The bureau must put it in place within one business day if you do it online or by phone. If you mail a request, it takes three business days after they receive your letter.

You will get a confirmation. Save it. Some bureaus give you a PIN or password you will need later to lift the freeze.

STEP 4: FREEZE CHEXSYSTEMS TOO (OPTIONAL BUT SMART)

ChexSystems is a separate reporting agency that banks check when you apply for a checking or savings account. You can freeze your ChexSystems file for free as well at chexsystems.com. This adds another layer of protection.

WHAT HAPPENS AFTER THE FREEZE?

Your current accounts are not affected. You can still use your existing credit cards. You can still check your own credit report. The freeze only blocks new lenders from viewing your file.

If you want to apply for new credit yourself, you can temporarily lift the freeze. You choose which bureau to unfreeze and for how long. It goes back into place automatically. This means you are in control the whole time.

A FREEZE IS NOT THE SAME AS A FRAUD ALERT

A fraud alert is a softer step. It asks lenders to take extra steps to verify your identity before opening a new account. A freeze is stronger because it actually blocks access. You can have both at the same time.

WHO SHOULD CONSIDER A FREEZE?

Anyone can benefit from a credit freeze, but it makes the most sense if you have been a victim of identity theft, if your personal information was exposed in a data breach, or if you are not planning to apply for new credit anytime soon. Even children can have their credit frozen. If you have kids, freezing their credit files can protect them before they are old enough to know what credit is.

A credit freeze will not hurt your credit score. It does not show up as a negative mark. It simply keeps your file locked until you choose to open it.

Taking this one step can give you real peace of mind. It costs nothing and takes less than an hour to set up at all three bureaus. That is a small investment of time for a big layer of protection.