What is a credit freeze and what makes it different from
credit fraud alert? The credit freeze was first introduced
in California in 2003. Today, however, a credit freeze can
be done in all 38 States and can be requested from any of
the three major credit bureaus- Equifax, Experian and
TransUnion.
Once a consumer puts a freeze on his credit , no lender,
insurer, employer or anyone else can make an inquiry or
request on his credit report. The fact is, not even you,
can look into your credit report unless you order the
credit bureau to "unfreeze" or "thaw" your credit.
Unlike a credit fraud alert which only lasts for up to 90
days, a credit freeze will last for as long as the owner of
the report doesn't request that his report be thawed.
Therefore, if you want to apply for a new credit card or
you plan to get a loan, you need to notify the credit
bureau in advance to get the freeze be lifted.
The unfreezing of the credit report can take from within
minutes or up to a week, depending on the State or the
credit bureau issuing the report. You have the option to
choose whether you want to unfreeze your credit report
permanently or for just a limited time period. Also, within
this period, you can limit the list of people who can look
in your report.
Why Freeze your Credit
Putting your credit report on a freeze definitely gives you
more protection from identity theft or fraud. Going through
the procedures of freezing and unfreezing and paying a
certain amount, usually about $10 each time is definitely
worth spending your money on rather than risk being
victimized by ID theft or fraud.
How do you ask for a credit freeze?
A fraud alert can be done by phone but if you want to
freeze your report, you need to send a letter of request to
the credit bureau via registered mail. Generally, at least
two proofs of residency such as a billing statement or a
copy of your driver's license is required. The cost for a
credit freeze ranges from $10 to $12. Unfreezing or thawing
will also cost you about $10 to $12 for each bureau.
More Credit Precautions
But aside from putting your credit report on a freeze, what
other steps can you do on your own? Here are valuable tips
you should not overlook:
* Shred all receipts, past billing statements, and old
documents that contain your bank information or any of your
personal details on it. If you don't have shredder, tear
the document into tiny bits and throw the pieces in
separate trash bins.
* Don't write your bank information, credit card numbers,
PIN codes or passwords on just any sheet of paper. Keep all
these important details in one log book and keep it in a
secured place or a locked storage.
* If you want to use your credit card for shopping online,
ask your credit card company for a different credit card
number that you can use exclusively for online transactions.
* Access your online account regularly. Most credit cards
today provide an online account service where you can check
the status of your account over the internet at any time.
Thus, you don't have to go out of your way to visit your
local bank to update yourself. It takes only five minutes
at most to access your account from your computer.
* Sign up for your credit card's fraud protection service.
Some credit cards provide this feature automatically but if
your credit card doesn't, it's a good idea to sign up. This
service will give a quicker response from your credit card
issuer in case your wallet or your credit card gets stolen.
* If you need to get in touch with an agent from any of
three credit bureaus- Experian, Equifax or Trans Union- by
phone, visit gethuman.com to access the latest contact
numbers where you can speak with a human representative
from the credit bureaus and not just a recorded message.
----------------------------------------------------
Melanie Mathis is a credit analyst and a writer for 8
years. She has been participating in the programs of NHBS,
Inc such as their continuous effort in giving out Free
Credit Repair and Building Ebook. NHBS also has a list of
recommended bad credit credit cards.
Copyright 2008.
http://www.newhorizon.org/Info/unsecured.htm
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