Reasons Why a Credit Report is Frozen
If you live in the United States, you can place a freeze on your credit reports. A credit freeze means that no one, not even you, can open new credit accounts under your name. There are many reasons why you would want to put a lock on your credit profile.
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Identity Theft
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If you have been the victim of identity theft, freeze your credit profile to prevent any further damage to your credit. There is no charge for placing a freeze on your credit if you are an identity theft victim.
Senior Citizens
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According to the FBI, senior citizens are more prone to credit card fraud because of the possibility of a lifetime of retirement savings, and because they tend to be more trusting to strangers as they grew up in a time when fraud was not so prominent. To protect themselves, senior citizens should have their credit reports frozen, and states such as Oklahoma allow seniors to put a freeze on their profile for free.
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General Protection
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Anyone is allowed to put a freeze on his or her credit report. The fee for placing a lock on your profile varies depending on the state. The three credit reporting agencies can supply you with the pricing information.
Lifting a Freeze
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If you have a frozen credit profile and you would like to add a credit account to your name, contact the reporting agencies and pay a fee to have the freeze lifted. Once your account is in place, you can pay to have your credit profile frozen again.
Considerations
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You must initiate a separate freeze with all three credit reporting agencies. Freezing one account does not automatically freeze all three of them.
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References
Resources
- Photo Credit Image by Flickr.com, courtesy of Eric Jusino
