Has anyone done this?
Are there pros and cons besides what's listed here?
- The Equifax Breach: What You Should Know
Q: So should I take advantage of the credit monitoring offer?
A: It can’t hurt, but I wouldn’t count on it protecting you from identity theft.
Q: Wait, what? I thought that was the whole point of a credit monitoring service?
A: The credit bureaus sure want you to believe that, but it’s not true in practice. These services do not prevent thieves from using your identity to open new lines of credit, and from damaging your good name for years to come in the process. The most you can hope for is that credit monitoring services will alert you soon after an ID thief does steal your identity.
Q: Well then what the heck are these services good for?
A: Credit monitoring services are principally useful in helping consumers recover from identity theft. Doing so often requires dozens of hours writing and mailing letters, and spending time on the phone contacting creditors and credit bureaus to straighten out the mess. In cases where identity theft leads to prosecution for crimes committed in your name by an ID thief, you may incur legal costs as well. Most of these services offer to reimburse you up to a certain amount for out-of-pocket expenses related to those efforts. But a better solution is to prevent thieves from stealing your identity in the first place.
- Consumers Union’s Guide To Security Freeze Protection
When a security freeze is in place at all three major credit bureaus, an identity thief cannot open a new account because the potential creditor or seller of services will not be able to check the credit file. When the consumer is applying for credit, he or she can lift the freeze temporarily using a PIN so legitimate applications for credit or services can be processed.
- How I Learned to Stop Worrying and Embrace the Security Freeze
Freezing your credit involves notifying each of the major credit bureaus that you wish to place a freeze on your credit file. This can usually be done online, but in a few cases you may need to contact one or more credit bureaus by phone or in writing. Once you complete the application process, each bureau will provide a unique personal identification number (PIN) that you can use to unfreeze or “thaw” your credit file in the event that you need to apply for new lines of credit sometime in the future. Depending on your state of residence and your circumstances, you may also have to pay a small fee to place a freeze at each bureau. There are four consumer credit bureaus, including Equifax, Experian, Innovis and Trans Union.
- Frequently asked questions about security freeze
Security freezes do not apply to any person or entity with whom the consumer has an existing account, nor to a limited number of other parties who may access the files for purposes not related to new accounts, such as law enforcement agencies and certain governmental agencies that need them for investigations and other statutory responsibilities.
- Things to Consider When Deciding Whether to Place a Security Freeze
Before opening a new account, most reputable creditors evaluate the creditworthiness of the applicant by checking the consumer credit report or credit score. A security freeze stops potential creditors from seeing the consumer's credit report and credit score unless the consumer decides to unlock the credit reporting file with a PIN. The freeze stops the new account in the name of a thief because the creditor who is considering the thief’s application can’t check the real consumer’s credit report or credit score.
A security freeze does not stop misuse by a thief of your existing bank account or credit accounts, which is called existing account fraud. You still have to check the monthly statements on your existing accounts for any erroneous charges or debits.
- Identity Theft, Credit Reports, and You
Do not use the following advice to correct a problem with an account which is factually yours. If someone has stolen your credit card number and used it to buy things, you should not send letters. Just call your bank; they’ll take care of it. For reasons beyond the scope of this post, that is a really well-understood scenario that banks are very customer-friendly about. The only thing we’re talking about here is accounts / debts which were never yours.
Was an account opened in your name without your consent? Great, you’re in the right place. The rest of this article assumes that you’ve either checked a credit report or been told by a bank that an account exists in your name which you didn’t open.