Two Easy Steps to Protect Yourself from Identity Theft
October 16, 2020- One of the many risks to an individual/family’s wealth is identity theft. Data breaches have been increasing significantly over the past few years, and identity theft is one of the most common results of these data breaches. It impacts millions of Americans each year and can be a time-consuming and expensive problem to fix. While you cannot control how companies protect your personal information, there are two easy steps you can take to reduce your risk by protecting your credit.
The first step is to monitor your credit by reviewing your credit reports each year. Under the Fair Credit Reporting Act, you are entitled to a free copy of your credit report from each of the three nationwide credit reporting bureaus (Equifax, Experian, and TransUnion) once every 12 months. This is an effort to protect consumers by allowing them to review their credit reports frequently, looking for inaccuracies or signs of identity theft. As a result of the COVID-19 pandemic, the credit bureaus are offering free weekly credit reports online through April 2021. It is prudent to take advantage of obtaining copies of your credit reports every year, or as often as weekly through April 2021, and report any inaccuracies to the credit bureaus.
The second step is to institute a credit freeze with each of the credit reporting bureaus. This makes your credit report unavailable, with a few exceptions, for opening new credit in your name. It is free to freeze or lift a freeze on your credit with all three bureaus. You may also freeze the credit for your children under age 16, helping protect their identity until they need their own credit for applying for financial aid, a credit card, etc. It is best practice to freeze your credit as well as your children’s, then temporarily lift the credit freeze when necessary.
See the frequently asked questions below to learn how to request your free credit reports and put a freeze on your credit.
FAQs
How do I request my free credit reports?
You have three options for requesting your free credit report each year. The easiest option is by submitting a request through www.annualcreditreport.com. This central secure website set up by the three credit reporting bureaus allows you to see your credit reports immediately after verifying your identity. If you prefer, you can call 1-877-322-8228 to verify your identity and request your credit report, which will be mailed to you within 15 days. The last option is mailing a completed Annual Credit Report Request Form, which you can print from www.annualcreditreport.com. This option will take the longest, as the report will not be mailed to you until 15 days after receipt of the form.
You may also set up online accounts with Equifax and Experian to view your credit reports. Both bureaus allow you to view your credit report more often than once every 12 months if you do so through your online account. See the link for each credit bureau below:
Equifax: my.equifax.com/
Experian: usa.experian.com/
What should I do if I find inaccurate information on my credit report?
If you find inaccurate or suspicious information on your credit report, you should let the credit bureau know what you believe is inaccurate. We recommend visiting that bureau’s website to find out how to address issues. You should also reach out to the creditor/business that reported the information.
Does my free annual credit report include my score?
The free annual credit report does NOT include your credit score. However, many banks and credit card companies do provide you access to your FICO score for free.
Do I request a report from all three bureaus?
You have the option to request credit reports from one, two, or all three of the credit bureaus. We recommend reviewing the credit report from all three each year, as they each may contain different information. It is up to you whether you request reports from all three at the same time or whether you spread them out throughout the year.
How do I freeze my credit?
You can request a credit freeze online or by phone from each of the three nationwide credit reporting companies. See below for the contact information for each:
Equifax
Equifax.com/personal/credit-report-services
Under “Freeze your Equifax credit report,” click “Place a freeze.”
Complete the information and steps to set up an account.
Once logged into your account, click “Manage a freeze” under “Credit Report Status.”
Follow the prompts to freeze your credit.
Experian
Click the “Security Freeze” tile, then the “Add a security freeze.”
Choose the “Freeze my own credit file” option.
Fill out your personal information, including selecting your own PIN, or let the system generate a PIN, and submit. Note: Your PIN is required to unfreeze your credit in the future.
TransUnion
Click the “Add Freeze” box under “Freeze My Credit.”
Complete the information and steps to set up an account.
Once logged into your account, you will see your credit report status and a button to freeze your credit.
You will have to select a PIN, which will be required to unfreeze your credit in the future.
How do I freeze my child’s credit?
Freezing the credit for your child is not as easy as freezing your own credit, as the request cannot be completed online. Each credit bureau requires parents to mail in a written request to freeze a child’s credit, along with proof of authority to act for the child (i.e., birth certificate, power of attorney, etc.), proof of identification, and the child’s identification (i.e., social security number, passport, driver’s license, etc.). It generally takes a couple of weeks for you to receive confirmation that your child’s credit has been frozen. The confirmation you receive will include a PIN, which is required to lift the freeze. This PIN needs to be stored in a safe location where you can access it years later, when you/your child are ready to lift the freeze. See links below for each of the credit bureau’s forms/instructions for freezing your child’s credit:
Equifax
https://assets.equifax.com/assets/personal/Minor_Freeze_Request_Form.pdf
Experian
https://www.experian.com/freeze/form-minor-freeze.html
TransUnion
https://www.transunion.com/credit-freeze/credit-freeze-faq#freeze-other
Does a credit freeze affect my credit score?
No. A credit freeze does not affect your credit score. Nor does it affect your ability to open new accounts; however, you will need to lift the freeze temporarily in order to do so.
Who can see my credit report if it is frozen?
You may still request your free annual credit report every 12 months, even if your credit is frozen. Existing creditors or debt collectors may also see your credit report.
How long does it take to lift a freeze?
You must contact the credit bureau to temporarily or permanently lift a freeze. If you know which bureau the creditor/business is contacting, you can lift the freeze at only that bureau; otherwise, you need to contact all three. If the request to lift the freeze is made online or on the phone, the credit bureau is required to lift the freeze within one hour. If the request is made by mail, the credit bureau is required to lift the freeze within three business days after receiving the request.