Recently Experian announced that, starting November 1, they were voluntarily joining Equifax and Transunion to allow consumers in all 50 states to place a credit freeze on their credit files.
A credit freeze helps prevent access to your credit file. Since no one can check your credit(without your PIN number), would be identity thieves cannot open new lines of credit in your name.
Credit report freezing is one way of preventing financial identify theft should personal financial information fall into the hands of an undesirable third party. A freeze prevents your credit history from being accessed by a potential creditor. If a creditor cannot access a credit history than there is a very good chance you or anyone pretending to be you will not be given a loan or a line of credit.
A freeze doesn't guarantee someone cannot acquire credit under your name, however Experain says it is an affordable and quick way for consumers to take action to prevent identity theft in a worst case scenario.
- PC World
Only consumers in 39 states were able to place a credit freeze on their files, until the three credit bureaus allowed consumers in all 50 states to do so. that means consumers in 11 states were not protected.
Those 11 states (with no credit freeze laws) are:
Thankfully, the bureaus have decided to protect all consumers, unlike this handful of states.
The Federal Trade Commission, which provides a wealth of consumer guidance on credit freezing, agrees with Experain, yet cautions: A credit freeze may prevent an identity thief from opening a new account in someone's name, it will not protect the victim from a thief who is using their existing credit cards. Additionally, if the theft is ongoing when you place a credit freeze, the freeze itself won't prevent the crime. That said, the FTC does see credit freezing as effective against the "vast majority" of identify thefts that entail opening new credit accounts.
For victims of identify theft, Experian's file freeze option will be free of charge. Others who simply want to freeze access to their credit history will be subject to a $10 fee to place or lift a freeze. Some states mandate a specific price for placing and removing freezes.
- PC World
I think this is an option, that I will certainly take advantage of.
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