Each of the three main national credit bureaus - Equifax, Experian, and Trans Union - have announced that they will offer national freezes which will let consumers 'lock down' their credit histories. This will be especially helpful if a person is a victim of identity theft. Previous only 39 states had allowed consumers to lock down their scores.
A credit freeze stops the bureaus from issuing your credit history to a creditor who asks for it. Since few lenders will issue credit without first seeing a credit score, freezing one's credit information means identity thieves will not be able to use stolen social security numbers to illegally open new accounts.
Freezes will be free for identity-theft victims. The fee for others is $10 - to freeze or unfreeze credit files. This fee may go lower if it is mandated by state law. A freeze can be requested by letter and unfrozen by e-mail, phone, and letter. Websites of the three bureaus should soon, if not already, have information on them about how to 'freeze' a person's credit history.
The website where one can go to get a free copy of one's credit report once a year from each of the credit bureaus is www.annualcreditreport.com. Experian's website is www.experian.com, Trans Union's website is www.transunion.com, and Equifax's website is www.equifax.com.
This is great news for consumers who have been victims of identity theft! Also, it's good to see this process is being streamlined and made 'easier' for the consumer. I've talked to some lenders who have seen this in action - the 'freeze' - and they say it is initially confusing (what? NO credit history?) - but it soon becomes apparent that this freeze is there and they definitely question the person trying to get credit!
Laura Piper, President - Consumer Credit & Debt Counseling Services, Inc.
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