The most possible reason why you ended up on this article is probably because you dealt with an identity theft, and measures like fraud alerts aren't working for you. The credit freeze is a security freeze that allows users to limit other people from viewing their credit reports.

While this aspect works as an excellent preventive measure in protecting you from identity thieves opening credit accounts in your name, one thing you should not forget is that it is also an extreme step to take. Hence, understanding all the attributes related to it is essential. Wondering what these attributes are? Well, we have covered six of the most essential aspects you should know before freezing your credit below.

The Top 6 Factors to Know Before Freezing Your Credit

We understand that freezing and then unfreezing your account would hardly take a few minutes. However, instead of diving first into carrying out this action, it is essential to consider a few aspects before it. Here are six things you should know before freezing your credit:

Understand What Credit Freeze is

The first aspect to focus on when freezing your credit or planning to do so is understanding what this aspect actually is. The credit freeze is a tool that allows users to protect themselves against any credit fraud. This particular freeze allows users to freeze their credit file reports, which prevents companies, lenders, and fraudsters from viewing their credit reports. How so?

When an individual freezes their credit report, they stop any personal data from being reported to lenders and creditors. Sim when a fraudster tries to access your credit using your social security number to apply for a credit card, the application is rejected because the bank cannot verify the credit score.

Understand the Credit Freeze Process

The next thing you should know about credit freeze is that you'll be answerable and would have to request all three major credit bureaus for your freeze to become effective.

The person who wants to implement the freeze will have to provide their social security number, proof of residence, a copy of their photo ID, and a recent utility bill. Based on the bureau, users will create an account on the site and can then use it to freeze and unfreeze their files in the future.

You Can Freeze your Credit for Free

Many people believe that to freeze their credit, they would have to submit a cost or fee. However, this is certainly not the case now. While initially, there was a fee implemented to carry out this action, and the fee for freezing your credit ranged from state to state, the rules have changed.

Now, users are not charged with any fee to freeze their account despite whichever they live in. The fee is also free regardless of whether you have been a victim of identity theft. So, don't get trapped into paying a fee to someone, and understand that you will get this work done for free.

Understand that Freeze Doesn't Protect Everything

While you may believe that a credit freeze may protect you from all frauds related to credit, this is certainly not the case. What users need to understand is that this freeze can only protect users when someone else commits credit fraud by opening a credit account in their name without permission. However, it cannot protect you from a stolen identity.

So, if someone steals your credit card, they can still use your credit number to make purchases and your social security number to file tax returns. Hence, it is essential that one understands this essential aspect and not fall into believing that with a freeze, all of their credit aspects are secured.

Expect Credit Delays

Given that you have asked for your credit to freeze, users should be all set for credit delays. This is because credit freezes can create delays when credit is needed quickly when applying for a loan, applying for a credit card, or even job hunting.

This is because when you sign the credit freeze and then hop on to make a credit withdrawal, your credit company will not immediately proceed with the transaction. Instead, during the freeze period, before proceeding with confirming any credit withdrawal, a company will first check in one of the three major credit bureaus about your authenticity. This entire process can take time, and hence, you should expect credit delays.

Stay Vigilant

While freezing your credit is a relatively simple process, what one should understand is that it is also a crucial one. Hence, one should protect themselves from fraud in order to ensure that they do not reach a point to freeze their credit reports.

This can be done by checking in on their financial statements regularly and updating their passwords immediately if they detect any data breach. Moreover, it is also essential to report to the authorities if you report any unusual happenings before your credit is used for illegal aspects.

Conclusion

The world of banking and finance is highly crucial, and there are many aspects one should understand and get used to. If you are someone who has credits on their hands or is someone who recently encountered some unusual happenings with their credits, then we are sure you must have come across the concept of credit freeze. If this is the case, and you want to know more about the measures one should know and take before hopping on to make this freeze, then we hope this article was helpful for you.