Once you've established a credit score and have the credit cards and accounts you need, it might be time to consider freezing your credit. While it feels like you spent all this time to warm things up and surely it's too soon to freeze, this step will save you from identity theft and unauthorized credit applications—and it's free.
If you'd like to know about what exactly a credit score is, to start, then check this guide to credit here.
Why Freeze Your Credit?
As you'd now know, your credit reports are held by three Credit Bureaus/Agencies: Equifax, Experian, and TransUnion. They each have a similar but different way of calculating you a credit score that impacts how and when you can borrow money or get access to credit cards.
When you apply for a line of credit, the provider will do a “hard-pull” on your credit which gives them full access to your credit report for one or more agencies. Freezing your credit essentially puts a lock on these credit reports, preventing anyone, including yourself, from opening new credit accounts in your name without first lifting the freeze.
This acts as a powerful deterrent to identity thieves who may try to use your personal information to apply for loans or credit cards.
This is especially important as in recent months and years there have been a range of leaks of private information including social security numbers which would mean that pulls on your credit, and cards being opened in your name is a very likely possibility.
Freezing your credit means that only you can make the request, when you are good and ready.
When Should You Freeze Your Credit?
Freezing your credit is a particularly good idea if you're not planning to apply for new credit anytime soon. It's also a highly recommended step if you've been a victim of identity theft or data breach, as it helps to prevent further damage.
If you've gotten yourself established, and have a decent number of credit cards so that your credit score is climbing steadily—it's a good time to do it.
Freezing your credit reports does not mean that your credit score won't change (and grow!) it just means that no new lines of credit can be opened.
How to Freeze Your Credit
Most importantly: Freezing your credit is free (and relatively easy to do).
This is important because while it is a legal requirement for the credit bureaus to give you access to this functionality, they have all masked this behind language that makes it sound like you have to pay for the privilege.
You also importantly have to freeze your credit with all three Bureaus separately, and not just one. The reason is that different lenders look to different Bureaus when you apply, so if you freeze one, the others are still accessible.
How to freeze your credit with Experian
Experian calls their legally required functionality “Security Freeze” (ignore “Experian CreditLock” as that's a paid-for service you do not need.
- Download the official Experian app
- Jump through all the hoops to get access to your account (you can share everything with them because they know it already, anyway)
- Scroll down the dashboard to “Security Freeze” and slide the slider across—it may prompt you to upgrade to CreditLock or ask some extra questions, but you want to make sure that you end up with Security Freeze active
How to freeze your credit with Equifax
Equifax calls their legally required functionality “Freeze” or “Security Freeze” and their paid-for and unnecessary service is “Equifax Credit Monitor”.
- Go to equifax.com and start a myEquifax account
- Jump through all the hoops to get access to your account (you can share everything with them because they know it already, anyway)
- Go down the left menu to “Freeze” and activate the freeze on that subsequent page
Equifax have a very poor app that is meant to do this too, but my recommendation is not to trust it as they don't appear to be putting any energy into making this tool useful for you.
How to freeze your credit with TransUnion
TransUnion have a very frustrating process in place to get access to your account and I can't work out whether it's intentional or just poorly created. I tried using the app, but there are many places that it falls down (e.g. It requires a password that is between 8 and 15 characters whereas the website requires 12-64).
- Go to transunion.com
- Go to Member Login top right
- Go to Service Center
- Create an Account
- Jump through all the hoops to get access to your account (you can share everything with them because they know it already, anyway)
- Go to “Credit Freeze” and activate the Freeze
Benefits of Freezing Your Credit
- Enhanced protection against identity theft: A credit freeze makes it significantly harder for fraudsters to open new accounts in your name.
- Peace of mind: Knowing your credit is secure can provide peace of mind and reduce stress—you've got enough things to worry about and with fresh credit like yours, this could be a disaster if you don't do it
- Free and easy: Freezing and unfreezing your credit is generally free and can be done quickly online or by phone.
How to unfreeze your credit
In a similar fashion to freezing your credit, you also have the ability to remove the freeze, and temporarily lift the freeze (which some Bureaus call “Thawing”).
If you're going to the bank, renting a home, buying a car, getting a loan, or doing anything that might need your credit score and you don't mind them having access, the best thing you can do is temporarily lift the freeze on your credit (ideally just with the bureau they ask for) and then it will go back into place afterwards.
If you forget to do this, the lender will not be allowed access to your score and your phone may light up that someone is trying to hit your credit. In most cases this shouldn't matter and you can lift the freeze, then try again right away.
There's really no reason to leave your credit unfrozen.
Things to remember when freezing your credit
- Temporary lift: Remember to temporarily lift the freeze if you plan to apply for new credit.
- Multiple bureaus: You must freeze your credit at each of the three major credit bureaus to ensure complete protection.
Be safe out there!
