Scammers are almost always financially motivated.
But it’s most common to ask for a freeze if: The only difference is that any new creditors and credit card companies who try to run a credit check will be turned away. Your current creditors will continue to report back to the credit reporting agencies and impact your overall score. You’ll still be able to use all of your current credit accounts and make loan or credit card payments.Your credit score will still change based on your credit card statements and payment history.
You’ll need to opt out of those individually. A freeze won’t stop you from receiving offers for new credit.
Most creditors need to see your credit report before lending to you or opening accounts in your name. What Is a Credit Freeze? What Happens When You Freeze Your Credit?Ī credit freeze - also known as a security freeze - restricts access to your credit report until you “thaw” it or remove the freeze. Try Identity Guard risk-free today with plans starting at $6.67/month (and a 60-day money-back guarantee). For over 25 years, more than 38 million people have trusted Identity Guard to help keep them safe. □️ Protect your identity, credit, home title, and assets. In this guide, we’ll explain when to know if you should freeze your credit, what happens when you do, and what other options are available for staying safe. Luckily, Larry shut his computer down and contacted his bank before the scammers could do any real damage - but not everyone is so lucky.Īccording to the Federal Trade Commission (FTC) : Americans lost over $6 billion to fraud in the first 9 months of 2023 alone.Ī huge portion of those losses came from fraudsters opening new accounts or taking out loans in their victims’ names - something a credit freeze could help protect you from.īut while many experts tout the benefits of a credit freeze, they’re not the only tool you can use for protecting your financial accounts from fraudsters. But he got suspicious when the person he was speaking with got him to download software that gave them access to his computer to “help” with the refund. When Larry received a bill for $349 for virus protection software he hadn’t signed up for, he quickly contacted the company to cancel the service. Can a Credit Freeze Protect Your Identity?