Learning & Guidance | Skyla Credit Union

What Is a Credit Freeze?

Written by Yanna | Jul 19, 2024 5:38:51 PM

In an age where identity theft is increasingly common, taking proactive steps to protect your financial information is essential. According to a 2023 report by the Federal Trade Commission (FTC), over 1.4 million cases of identity theft were reported in the United States alone.

One effective method to safeguard yourself from credit fraud is to freeze your credit. Lets dive into what it means and how you can start freezing your credit. 

 

what is a credit freeze?

A credit freeze is a security measure you can take to protect yourself from credit fraud due to identity theft. By placing a freeze, you block most companies from accessing your credit file until you decide to unfreeze or temporarily "thaw" it.

When your credit is frozen, you can still apply for loans or credit, but potential lenders won't be able to pull your credit report until you unfreeze it. This means you'll need to lift the freeze temporarily or schedule a thaw in advance when you plan to apply for credit.

To fully protect yourself, you need to freeze your credit with all three major credit bureaus:

Each bureau requires you to contact them separately to place or lift a freeze on your credit file. 

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Psst... I know it might sound like a bit of a hassle to reach out to each one individually but It's really quick if you do it online. trust me, it's worth it.  By contacting each bureau directly, you ensure that your credit report is securely frozen across the board. 

 

what are the pros and cons of freezing credit? 

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who can access my frozen credit reports? 

While freezing your credit report keeps your sensitive information safe from unauthorized access, there are some exceptions where certain parties can still access your records:

  • Personal Access: You retain access to your own credit report.
  • Debt Collectors and Current Creditors: These entities can continue to access your report.
  • Employer Access: You can permit an employer or potential employer to check your credit, though certain details may be omitted.
  • Marketers: Marketers might still see parts of your report to send you offers.

 

ready to take action?

Now that you understand what a credit freeze is and its pros and cons, it's time to learn how to implement one! Protecting your financial future is just a few steps away.

 

Have More Questions?

You can also always read more about Account Security and Identity Theft on the Skyla website. If you have any other questions, feel free to contact our customer service representatives by email, or give us a call at 704.375.0183.