Is Freezing Credit Reports Good or Bad?
Identity theft is very common in the world. Everybody can be at risk for identity theft, and we all often wonder what we can do to prevent this from happening. One idea would be to simply freeze your credit report. Freezing a consumer’s credit report is one of the most successful credit monitoring services. Just about everything we do brings with it ups and downs, so make sure you are aware of the pros and cons of freezing credit reports.
Some advantages of freezing your credit report are that your credit score will not be negatively tampered with. Also, this makes it very difficult for identity thefts to get new credit or open a new account using your identity. When the status of your account is frozen nobody can open an account by your name, but you can open new credit accounts after the freeze has been put into play, but it is necessary to temporarily lift the freeze. Within about 5 business days of the written request is when the freeze must be in place. If you would like to lift your freeze the Credit reporting agencies are obliged to lift the freeze within 3 business days of consuming the request. Checking your credit report once a year would be a great idea. Even though your credit is frozen, you are still able to order a copy of your credit report.
Along with many advantages of this action, it comes with its own set of disadvantages. If you plan to take out a loan, or even apply for a mortgage, it will be impossible for a creditor to view your credit score while the freeze is in play. Freezing and unfreezing your credit over and over can be very time consuming. If you are applying for a mortgage or loan, it is wise to wait until you are approved before freezing your account. Also, even though your credit will be frozen, it is still possible for governmental agencies such as child support collection services, and taxing authorities, to still have access to your file.
If you are in the process of seeking out a job, placing your account under the freeze option may hurt the chances of a potential employer to do a background check. Many times, there is a fee to this process. Pre-screened credit card offers will not be rejected by freezing your account. Nobody wants inaccuracies in their reports right? By freezing your account, you run a risk of these inaccuracies to happen.
Looking at both the ups and downs of this action, it is safe to say that thinking about this is a wonderful idea. Writing out your request for a credit freeze is very important. In marriages, when one spouse freezes their account, it does not freeze the others’ account. Not everybody enjoys unsolicited credit card offers, so contact the Federal Trade Commission and you can request that these mailings be put to a halt. There is a hot-line out there for consumer’s (1-888-5-OPT-OUT). It is not guaranteed to stop every offer, but it will minimize the amount of offers you will receive.