Disclaimer: this is not financial advice. What follows is my own experience, information I found helpful to understand the credit freeze process, and what’s working for me.
Identity theft is a serious issue that can have long-lasting financial consequences. In this article, I’ll share my personal experience with identity theft, the steps I took to resolve the situation, and why I ultimately decided to freeze my credit. This story highlights the importance of staying vigilant and taking proactive measures to protect your financial identity. Learn about the process of freezing your credit and how it can provide peace of mind.
A Surprise Piece of Mail
After visiting my parents for dinner one weekend, they handed me a stack of envelopes. They were collecting any mail that came for me just in case it was important. I’d been living somewhere new for over a year, but that doesn’t stop advertising.
Among the pile of ads, there were a few letters from credit card companies. One of them felt off. Like it had a card inside. I was expecting one of those cardboard this-is-the-card-you-could-have-if-you-apply-TODAY things. Except, this wasn’t cardboard.
It was a piece of hard plastic with a sticker that said “activate now.” I knew for a fact I hadn’t applied, and I certainly wouldn’t have sent it to my previous address and waited for my parents to give it to me.
What happened? Someone applied for a credit card in my name, with my old address. Luckily, my parents checked their mail in time to intercept it.
What to Do If You Experience Identity Theft
I went through the recommended identity theft response steps, contacting the issuer to let them know the account was fraudulent. Placing fraud alerts at the credit bureaus, contacting my bank and any other credit card companies I actually had accounts with. Making a police report.
If you have the misfortune of being in this situation, your bank can likely provide you a good up to date checklist for this process. You can also check out the FTC identity theft site.
I got lucky. I caught it before any money was spent. The card issuer was helpful in shutting it all down. I monitored my credit carefully after that.
When I made the police report, the officer asked if I had any idea who had done it. Could it be a rogue friend or family member? I found that unlikely. The identity of my thief was a mystery.
Deciding to Freeze My Credit
A few years later, I decided to get a card with the company that issued that unrequested plastic. They had good rewards, and I thought their customer service had been good enough during that fiasco, which is important.
When I went to set up a real account with them for the first time, their website said there was a closed account in my name. It asked me to confirm my contact information from their records. I clicked through to the next page. There on the screen was an email address with a man’s name. A man I’d never met. An email that wasn’t mine.
I called their customer service right away.
Seeing that stranger’s email attached to my information brought it all back. I wasn’t going to leave my credit in a state where all it takes is a bad actor and a data breach (which seem to happen all the time) to let this happen again. I decided to freeze my credit.
What Does Freezing Your Credit Do?
Freezing your credit limits creditors’ ability to access your credit report, preventing applications from being approved in your name. It’s completely free at all three credit bureaus by law in the US. Yes, even the ones that make you click through three pages of ads about identity theft protection before they let you see your free score.
How to Freeze Your Credit in the USA
You can freeze your credit by phone, online, or by mail. I found the online process to be relatively straightforward. Create free accounts at each of the three major bureaus: Equifax, Experian, and Trans Union.
Once you’ve created the accounts, look for the free credit freeze or “security freeze” option. You will have to do this for each individual bureau. It’s sometimes as simple as clicking a button and reading some information about what a credit freeze does, but it may take a bit of navigation to find on the site.
Don’t Forget to Un-freeze Your Credit When Necessary
There are times when a credit freeze may not make sense. Freezing your credit does add an extra step to certain financial activities. You’ll need to un-freeze your credit whenever a creditor needs to see it, such as for:
- Loan applications like mortgages, car loans
- Credit card applications
- Some apartment and utility applications
By law, the credit bureaus have 3 business days after receipt to un-freeze your credit if you notify them by mail, and 1 hour to un-freeze it if you request this by phone or online. You can also request a temporary lift on your security freeze to minimize how long your credit is accessible.
If you’re worried about identity theft, especially if you’ve experienced it before or know your data was exposed in a breech, this is a free way to gain some peace of mind.
Taking proactive steps to protect your financial identity is crucial in today’s digital age. Freezing your credit is a simple yet effective way to minimize your risk of becoming a victim of identity theft. While it adds an extra step to certain financial activities, the peace of mind it provides is well worth the effort. Stay informed, stay vigilant, and take control of your financial security.
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