It may now be possible that every American’s social security number has been leaked, leaving all of us wondering how to protect ourselves. One of the best ways to protect yourself from identity theft is to place a freeze on your credit reports. This prevents anyone from opening a new account in your name without your permission.

What is a Credit “Freeze”?

A “freeze” on your credit reports prevents lenders from pulling your credit report. This means that if a fraudster tries to open a new credit card or take out a loan in your name, the lender will not be able to pull your credit report and will likely pause the application until they can get in touch with you and have you “unfreeze” or “thaw” your credit report. This is a great way to prevent a thief from opening new loans in your name.

How to Freeze Your Credit Reports

You’ll need to go to each bureau’s website to freeze your credit report. If the credit bureau gives you a PIN, make sure to keep the PIN in a safe place and don’t lose it! Here are the links to the sites:

• Experian: https://www.experian.com/freeze/center.html
• TransUnion: https://www.transunion.com/credit-freeze
• Equifax: https://www.equifax.com/personal/credit-report-services/credit-freeze/

Other Services You Should Consider

• Chexsystems doesn’t report about your credit, but instead reports on your banking history, such as if you have an account closed due to too many bounched checks. Freezing your Chexsystems report can help prevent a fraudster from opening a new checking account in your name. Their site is at: https://www.chexsystems.com/security-freeze/information
• Add an Identity Protection PIN with the IRS to prevent fraudsters from filing a tax return in your name. You will be required to provide this PIN when you file your taxes. You can get a PIN for a free at: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin
• Your state’s Unemployment Office likely doesn’t offer “freezes”, but many states will allow you to register an account without filing a claim. It’s a good idea to register an account with your social security number before someone else does. Otherwise, fraudsters can register an account with your social security number and file fake unemployment claims in your name.
• Credit Karma is a free (but for-profit) service that gives you regular updates to your credit scores at Transunion and Equifax. It also allows you to see your Transunion and Equifax credit reports so you can check if any new accounts were opened in your name. Please be aware that Credit Karma is a for-profit company and makes money by recommending credit cards and loans to you, so be mindful of any of the marketing push notification and emails it may send you. Despite that, I found that Credit Karma is quick to alert me to any major changes (such as a new account) on my credit reports. You can sign up at: https://www.creditkarma.com/

Some things to keep in mind

• If you want to apply for credit (new credit card, refinance your home, etc), you must “unfreeze” or “thaw” your credit report. Ask the lender which bureau they use (Equifax, TransUnion or Experian) and then only unfreeze that one bureau. Please note that some companies may pull from 2 or all 3 bureaus, so you would need to unlock whichever bureau(s) they use. Just remember to refreeze your credit report after you’re done!
• If you already use a credit score monitoring service (like Credit Karma), freezing your credit report will still allow it to update. However, you may have difficulties registering for a new credit score service while your reports are frozen.
• Freezing your credit report still allows your banks to report your payment history, so you will still maintain a credit history and credit score.