Your browser does not support JavaScript
 

Blog & News

Credit Protection - Freezing and Thawing
Posted By:  Rob Siegmann MBA
Monday, February 25, 2019

Credit Protection - Freezing and Thawing

WHAT DOES FREEZING MY CREDIT DO?

When you freeze your credit, the credit reporting bureaus are not allowed to give information to someone or a business who makes an inquiry about you. Typically, businesses inquire about your credit when you (or someone posing as you) attempt to open a new line of credit, such as a credit card, car loan, mortgage refinance, or similar. This credit check helps the business decide whether to extend credit to you, and at what terms.

When your credit is frozen and the business can’t get any information about you, it stops the process — which means a fraudster will be unable to open an account while using your identity.

Based on a new law in response to the Equifax breach, freezing your credit can be done at no cost. Previously, this request would have cost $10 per credit bureau, or $30 total.

WHY DOESN'T EVERYONE JUST FREEZE THEIR CREDIT THEN?

While freezing your credit won’t guarantee safety, it’s a pretty strong defense against identity theft. The only catch is that you must thaw (or unfreeze) your credit when you legitimately want to apply for a loan. You do this with a PIN that you get when you freeze it. While it’s not a heavy burden, it does add extra steps anytime you do something that requires a credit check.

Alternatives to freezing and thawing credit is to manually check your credit files. You can request a free copy of your credit report annually from each of the major credit bureaus at www.annualcreditreport.com, then carefully review for any activity you don’t recognize. If you find anything suspicious, report it immediately and take steps to lock down your credit through a fraud alert or credit freeze.

You can also pay for a credit-monitoring service, which effectively automates this process and alerts you about any activity involving your credit report. This approach can alert you of potential problems, but typically has a monthly cost of $20 per month.

It’s important to understand that checking or monitoring are not preventative, and any issue you find may be the result of someone using your identity already.

HOW DO I FREEZE MY CREDIT?

If you want to freeze your credit, you need to do it with each of the three credit bureaus: If you request a freeze, be sure to store the PIN to unfreeze your accounts in a safe place.

Whether or not you choose to freeze your credit, fraudsters could still take advantage of you by getting things like your credit card number(s) or passwords to online accounts. Make sure you’re taking the proper steps to secure your information so that it doesn’t fall into the wrong hands.



 
 
Subscribe To Our Blog

Blog Categories

  • Business Owners
  • Charitable Planning
  • Client Experience
  • College Planning
  • Estate Planning
  • Executive Compensation
  • Firm Updates
  • In the News
  • Investments & Market Updates
  • Net Worth
  • Retirement Planning
  • Security & Privacy
    • 02/25/2019 - Credit Protection - Freezing a
    • 09/21/2018 - The Equifax Breach - One Year
    • 02/22/2018 - Signs of Tax Identity Theft
    • 09/08/2017 - Equifax Data Breach
    • 05/17/2017 - How to Protect Your Personal D
  • Taxes
 

INVESTMENT
MANAGEMENT

Your investment philosophy should be grounded in academic research and financial science. Our team will build you an investment portfolio that aims to give you the highest probability of achieving your goals with the least amount of risk.

Learn More
 

RETIREMENT AND
TAX PLANNING

Figuring out how to recreate your paycheck or developing a spending policy should not be an overwhelming exercise. Our team has the expertise to help with retirement portfolio, tax strategies, distribution planning, social security maximization strategies and more.

Learn More
 

HOLISTIC/COMPREHENSIVE
PLANNING

We’ll have discovery conversations, gather and organize your data, then craft comprehensive plans to achieve your life and financial goals. As our ongoing commitment, we consistently monitor and tweak your plan to ensure you’re on track and surprises are minimized.

Learn More

WE'VE BEEN LISTENING
FOR OVER 25 YEARS

Life brings many transitions. Find the right advisor to fit your needs on a fee-only basis, and take the first step in the journey. Total Wealth Planning's team of Certified Financial Planners® guides Cincinnati families and associates through transition.


Total Wealth Planning Associations
WE ARE PROUDLY ASSOCIATED WITH

CONTACT INFO


 

WHAT'S NEW AT TWP


       
CORPORATE EXECUTIVES

WEALTH-BUILDING FAMILIES

RETIREES

BUSINESS OWNERS
ECONOMIC OUTLOOK

BLOG & NEWS

VIDEO LIBRARY

   
4665 Cornell Rd. Suite 160, Cincinnati, OH 45241 4665 Cornell Rd. Suite 160, Cincinnati, OH 45241
513-984-6696 513-984-6696
info@twpteam.com info@twpteam.com
Total Wealth Planning named finalist in Cincinnati Business Courier's 2-10 Best Places to work!
Monday, September 16, 2019


SEE MORE >

Follow us on Google+
Blog & News
Follow us on Twitter
Find us on Facebook
DISCLOSURES | COPYRIGHT © 2019. TOTAL WEALTH PLANNING. ALL RIGHTS RESERVED.
GET STARTED
READY TO
GET STARTED?