Most commonly used in cased of identity theft, a credit report freeze is a term used with putting a hold on your credit report so that unauthorized people can’t access it. It is used most commonly in identity theft cases, but isn’t entirely used in that case.
Identity theft happens when someone tries to use someone else’s credit report and account by dishonest means. It is a serious offence. A credit freeze is one of the ways to fight it until the other person is found and prosecuted.
A credit report freezes impact creditors, financers, and thieves alike. The existing creditors and financers can continue to conduct transactions and can access the credit report, and credit score. However a person handles his or her credits from the continuing transactions will also reflect on the credit report. It just becomes a seal to the outside world, and the current group of people having access to credit report become the sole identity.
A written request for a freeze is supposed to be submitted to the three credit reporting bureaus. They usually charge a nominal fee of about $10 per request. However, in case of a complaint about identity theft, the agencies don’t charge any fee upon producing proof. A written request is mostly required, but online request is also open now following certain terms and conditions.
Depending on the method of freeze, it gets removed. For example, in case it was through a written request, a written request will be required to uphold the freeze. In case of online application, online process must be followed. A freeze stays on until and unless an application is given to remove it temporarily or permanently. It can stay on years when nobody requests to remove it. A temporary removal may mean removing the freeze for a few days or months to carry out some new credit transactions, and then again applying the freeze after it is over.
Fraud alert is another thing which can be used to prevent identity thieves. Fraud alert makes the agencies inform the related person when anyone tries to access or use the credit profile of the person. However, there is a huge difference between fraud alert and credit report freeze. In the freeze, there is absolutely no information exchange on the credit profile outside the group of already people already continuing the transactions.