Monday, November 12, 2007

Experian, Equifax and TransUnion Offer Credit Freeze to All Consumers



by Heather Wells (Recovery Advocate)




Starting this month, all consumers will be able to place a “security freeze” with the three major credit reporting agencies. This press release sent on October 31, 2007 details who is eligible to freeze their credit files for free and which folks may need to pay fees to each of the credit bureaus for this service. These fees are for "freezing" and "thawing" your credit files.


Before November 1st of this year, there were 39 states (and DC) that had laws on the books stating that their residents could freeze their credit files. Some other states had adopted freeze laws that applied to victims of identity theft only. With this new law, everyone is eligible, whether they are victims of identity theft or not.


A security freeze (a.k.a. credit freeze) prevents creditors and other entities from viewing your credit report without your express permission. When you apply for credit with a freeze in place, you must use a PIN provided by the bureaus to temporarily lift the freeze. The temporary lift lasts 2-3 days and the entire process adds a few extra days to the application process. The freeze is in place indefinitely until you decide to permanently lift it. Much has been written about the benefits and drawbacks of the freeze. If you are thinking about placing a security freeze, be sure to take into consideration all of the negative consequences as well as the positive.

For example, with a freeze in place, you may be denied employment because your potential employer is unable to conduct a background check. I have personally worked with victims of identity theft who were unable to purchase a new car at a "super sale" rate because they did not time the "thawing" of their credit files just right. On the other hand, there are many id theft victims who enjoy the peace of mind that the freeze offers them, and are more than willing to put up with any potential inconveniences or out-of-pocket expenses.

The three credit bureaus have more information on security freezes at their websites, www.experian.com, www.transunion.com and www.equifax.com.

3 comments:

Anonymous said...

Thank you for some other informative website. Where else may I am getting that kind of information
written in such an ideal manner? I have a undertaking that I am just now
running on, and I've been at the look out for such information.
Here is my webpage ; Maximum 10 Male

Anonymous said...

Thank you for some other informative website.
Where else may I am getting that kind of information written in such an ideal manner?
I have a undertaking that I am just now running on, and I've been at the look out for such information.
Also see my site :: Maximum 10 Male

ovei bardhan said...

Credit Repair Specialists that permanently delete and block negative accounts from your credit report, with a 99% effective success rate! We end the constant collection calls and letters and Fix Your Credit within 30 Days. identity theft credit repair