Credit Freeze
Today, credit freeze is widely known as the best possible defense against the increasing malaise of identity theft. In simple terms, it is the process of locking the credit report of an individual.
Without access to the credit report, no reputable financial institution will provide any credit or loan to an individual. If the person himself or herself is seeking a loan or credit, he or she can request the agencies for lifting the credit freeze. By this way, one can be pretty certain that even if some fraudsters manage to get hold of one's critical personal information such a password or social security number, they will not be able to exploit the data for any financial or personal benefits.
To reap all the benefits of credit freeze law, one has to apply to all the three companies. It is not a very complex process, but not an absolutely hassle-free one either. A major problem with this rule is that it will delay the processing of any loans when the person actually applies for one. For getting loans, one has to get the credit freeze removed, which is again not a hassle-free process. Therefore, this option might act as a speed-breaker for one's own loan application.
A good way to overcome most of the problems associated with this provision is to hire the service of a credit freeze agency. An agency that provides identity theft service also provides the service of credit locking. Once a person hires the service, the agency registers the person's details with all the three credit-reporting agencies. Moreover, the credit freeze agency also renews the fraud alert option automatically, after it expires in 90 days.
How Credit Freezes Works
Credit freeze is a legal necessity in many states of the country. The first state to have introduced this concept into its legislation is California. This rule was introduced after the complaints and cases about credit-related identity theft increased in the state. The rule allows a person to request the three credit-reporting agencies in the country – namely, TransUnion, Experian, and Equifax – to not to issue a credit report to any financial institution or credit agency. In such cases, the companies cannot and will not release the credit rating information, unless the customer has requested for the same.To reap all the benefits of credit freeze law, one has to apply to all the three companies. It is not a very complex process, but not an absolutely hassle-free one either. A major problem with this rule is that it will delay the processing of any loans when the person actually applies for one. For getting loans, one has to get the credit freeze removed, which is again not a hassle-free process. Therefore, this option might act as a speed-breaker for one's own loan application.
A good way to overcome most of the problems associated with this provision is to hire the service of a credit freeze agency. An agency that provides identity theft service also provides the service of credit locking. Once a person hires the service, the agency registers the person's details with all the three credit-reporting agencies. Moreover, the credit freeze agency also renews the fraud alert option automatically, after it expires in 90 days.
