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Stop Identity Theft Cold: Freeze Your Credit

frozen credit There was an article about "stopping identity theft" in the latest issue of Newsweek. As much as I work with credit reports as a mortgage broker, I was not aware that you could do this.

Freeze your credit.

Freezing your credit report is relatively new. In fact, you can only do it in 39 states right now, plus the District of Columbia. To find out if your state participates (and what the procedures for your particular state are) visit Consumers Union.

In a nutshell: you simply "freeze" your credit so that identity thieves can not open new credit in your name. Until you lift the freeze, nobody-- not even you-- can file for new credit with your social security number.

This would be ideal for me.

1.) I have no intention of messing with my mortgage right now or anytime soon. I have a good, fixed interest rate and I have no plan to refinance right now.

2.) I have all of the credit cards that I could need. In fact, I have way too many credit cards.

3.) We (my husband and I) still owe about 1 - 2 years of payments on each of our cars. Once those are paid off, we plan on driving them to the ground. (Neither my husband nor myself have "car egos".)

4.) In addition to what was stated above, I just realized I haven't applied for any new credit in over a year. I haven't been using my credit at all. What if somebody else had wanted to? I probably wouldn't have noticed for a while! They would have already purchased the dirt bike and left town; I would be several months late before they tracked me down!

You can "unfreeze" any time you want. I think it would benefit anybody (who isn't currently seeking a loan or lease) to freeze their credit report while it sits, unused. Stop identity thieves cold! (Yes, pun intended.)

The freeze will not change your credit score.

Do you have enough credit cards at this time? No plans to refinance or buy a car for a while? Gail Hillebrand of Consumers Union recommends that every consumer considers this option. Again, here is the link...go for it:

http://www.consumersunion.org/securityfreeze.htm

Posted by Michael and Karen George on 09/20/2007 03:20 PM

Comments (254)

mortgage credit

254 Comments on Stop Identity Theft Cold: Freeze Your Credit

SEP

2007

Woo-hoooooooo....Nevada is one of the states listed. I'm going to do it for us. Thanks Karen, great post!

Karen, Not a bad idea. I'll send the word out to my clients. Thank you.

Karen, Thanks for a great tip. Not a very well publicized option.

The question that is not answered by this is - how does the FICO scoring model handle a "freezing" of credit? Make sure that it won't somehow hurt you when you decide to "unfreeze" it.

Better safe than sorry!

Clearly I don't trust Fair Issac.

Karen - Thanks for the info - it is worth checking into for many people.

Karen,

Most people aren't aware of this option to foil the crooks. It depends on your situation if you should do it. To unfreeze your credit when you need it takes some paperwork and a dose of bureaucracy, but the process is well worth it. Nevada does have an active freeze option.

This is a great idea, Karen. Thanks for sharing. Off to see if CA is one of the 39.

Jeff

Hi Karen, great post. Thanks for letting us know about this.

Karen,

Nice post! Good info for everyone! Thanks, Fran

What a great thing to pass out...thanks, Karen.

How would you feel about me posting this information (not word for word, of course) to localism for my town? What kind of credit or permission would you like?

This information was re-introduced to me recently. I think I'll probably do it since I don't plan on applying for any new credit soon.

I wasnt aware that you could "freeze" your credit, thanks so much for the great advice!

Karen, great information! I checked and Texas is online starting September 1st. We have much more credit than what we need so this sounds GREAT! I had a friend whose identity was stolen and it was such a MESS! They had to get the whole mess straightened out before they could buy a home.

I can't wait to forward this gem to my clients! What a terrific service and I'm thrilled that it's available here in Oregon.

Thanks Karen!

Great information Karen!!! I, too, will be spreading the word to my clients!!!

Joey-- you can do whatever you want! Feel free to post in Localism, for your area. I don't need credit...in your case. Like I said, I just read it in Newsweek!

Hi Karen,

I was a victim of identity theft back in Dec. I think I told you that in my emails to you. They have an alarm on my report for the next 7 yrs..but I did have to put it in writing with a police report of the actual crime. They intend to contact me if I ever open or some opens accounts under my name before they will allow you to proceed. All you need to do is show the police report..generally they only do this for 90 days..but if they see the report..it is automatically 7 yrs at your request.

Karen, Thank You! I am copying this info immediately and passing this along to my friends, customers and colleagues. You give us the best information. Blessings!

Thanks, Karen. I wasn't aware of this. I've just checked the web site you listed and Georgia, unfortunately, isn't one of the states.

Kathy

This is awesome! I had never heard of it before. Thank you for sharing this information and the link as well.

peace

Karen - I knew about this but had not follow through, thanks for the reminder. Doing this can save us future headaches

Karen - I'm so with you in the fact that I don't have a 'car-ego'. To me, it is nothing more than a depreciating liability.

Karen, this is a fantastic post. I try to gather information on credit for my clients and this is a great find. I have never heard of this before but its something I can use as well.

very cool

I agree that it is for people who have no plans to make changes

if you get a mortgage and finish up all the credit pulls, it is a good thing to do... looks like it would also be a good thing for people who have a tendency to get a new card for the holidays ...

it should also keep track of those obligatory random "inquiries"

I just finished working with a lending company and occasionally a credit check would ‘come back' with an Extended Fraud Alert on the account. This was via the Fair Issac with Equifax. The Extended Fraud Alert was placed on the account voluntarily by the individual.

I know the name Extended Fraud Alert does not really sound like something that the consumer would place on the account but none-the-less, that is what the title was. Anyhow, the EFA alert allowed for three options for the consumer to allow the ‘credit pull' against their name.

Option 1. was for them to put an alpha-numeric code (password) on their credit report and we could merely ask them to tell us the code over the phone.

Option 2. was for them to have us call them back at a preset phone number that was on the credit report.

Option 3. was 1 & 2 combined; call them back at the phone in the credit report and have them validate the password.

I think it costs ten bucks to put it on your credit report. After seeing what can happen to peoples credit, I have been thinking about doing it also. If your credit gets screwed up you can be screwed for years. Just the effort to straighten out your credit from a credit fraud can be enough to drive a sane person crazy.

I am not sure about this 'state' involvement/approval. I think some of the states have mandated that the credit agencies (extortionists) can only charge you $10 for the service. However, I think any credit account can get the Security Freeze / Extended Fraud Alert directly from the credit agency. If you live in a state where the $10 is not mandated, the credit agency probably charges approx. $35-75 per year. Go directly to the credit agencies and check with them Equifax, TransUnion, Experian. They are all WWW.xxx.COM. ( <<< silly computers) There is also a place called Innovis that does this for consumers. Also, the EFA is for 7 years unless you choose to end it prior to that.

This is a great thing. The real estate computers were broken into here in Northern Illinois - they don't THINK our social security numbers were taken...this could really help a lot of Reators in my area. Sherry

What you said makes sense Dwight. I'm with you on the state approval (assumed) B.S.

SEP

2007

I know Dwight mentioned this a couple posts ago and I want to second that...A Fraud Alert on your credit report. I have one and I love it!

No one and I mean no one can open an account ulness they absoutely verify by a direct phone call and asking me a zillion questions to verify my identity.

You should get one too. You can never be too careful.

what a great plan - and this makes so much sense and would stop thieves in their tracks - thanks for sharing :o)

Karen, Every time you speak you amaze me. I find it hard to believe that you manage to find such juicy tidbits when to all of us here on the rain your plate seems so full. All the reason why each and everyone of us here on the rain Cheer you on. You are a dynamo! There is not a day that goes by that you are not in our thoughts. Thank your for the swell information.

Blessings to you and your whole family.

Excellent post Karen. We need to recommend this to all of our customers (after they close). Thanks for the info.

Hi Karen. First, it's good to see you post. Second, I listen alot to the Clark Howard show on talk radio. He's a credit and money expert. His website is his name if you're really looking for some detailed info on the matter.

Karen, this also helpful for those of us who pay cash for most things. I will do this. Thanks for sharing.

I had no idea this could be done. One more thing to add to my 'to do' list. Thanks, Karen!

Thanks for the well written and well thought out information.

WOW Karen....what valuable information. Thank you so much for this information!

Jeanean Gendron

More great information! Thanks, Karen. I hope you are feeling well today! :)

Thanks for the info. Identity theft is not something to take lightly at all as we all know. Hopefully,something can be done to stop this because this thing seems to be getting out of hand.

Karen, I have been recommending this to my clients with good credit to be safe. The funny thing is people think that it is hard to obtain credit if you need it. It is really the opposite. The credit bureau just needs to speak to you on the phone and ask you questions that only you would know. After that they release it. It is about an extra 10 mins at the most. 10 mins and its a free Insurance policy.. what a Deal..

A VERY good idea for people who have recently lost a wallet or purse.

Karen - Way to go! I can't get this out to my people fast enough. Thanks.

This has got to be the best blog ever!!!!! I just looked at the process for FL. This could literally save my life.

Karen G,

I have to say that last June, I was the victim of a car break-in in front of my office. It happened in 5 minutes while I was running back and forth to my car in a rather horrific storm putting my things into the car. I had quite a lot of things to put into my car, so it took 2 trips - umbrella in hand. I locked the car, covered my purse and bag I carry other needed items in - for listings, etc.

They broke into the car via the passenger window and took everything within reach - even my clothes that were on top of my bags.

Well, my like went into nightmare mode. My wallet, checkbook, SUPRA, $500. camera and a plethora of other things I used on a daily basis.

I called the police and a traffic accident officer arrived...it wasn't an accident!

Well, after running around to about 3 different police departments, this is still an ongoing mess.

They know who broke in - his grandfather sent me a letter and told me that it was his grandson. He has 8 other felony warrants out for his arrest and they still have not arrested him, nor the girl who rented the car for him. They also know who the 2 girls were that used my ID, they are 4 year repeat offenders, and the judges still let them out!

What a judicial system we have!

This is great info for me!

Thanks for your post!

Karen Monsour, Realtor®, Fort Lauderdale, Fl 954-464-4194

What a great idea. I just checked for Canada and it does not appear to be an option for us yet. Too bad.

Thanks for the info.

Jeff

I'm glad to see innovative ideas for stopping credit theives. It's very scary when you realize just how vulnerable we all can be.

Karen, what a wonderful idea, and thanks for sharing. I noted that Arizona is not one of the states included. I'm surprised since we are a state that has huge problems with identity theft. I will keep this in mind for out of state clients though, maybe put the info on my blog......thanks again,

This is excellent! Thanks for sharing!!

Karen - I took care of this a while ago. It is great. No more junk mail for credit card apps. Also, I feel safer now.

Karen, great post.

Thanks for all the info.

oh by the way, i am already a subscriber!
you have great posts
thank you.

Thank you my friend. I hope you are getting the rest you need and are not over doing it. Take care and God Bless.

Hi Karen - thanks so much for this info!! I'd never heard of freezing one's credit before, so really appreciate you sharing this with us!

Glad to see you writing another post - hope that means you're feeling pretty good! Take care of yourself!

Ann

Karen G from Karen M,

I hope you are doing well! Keep the faith girl friend, I've read the blogs. Worked in the Health Care field for 25 years!

I hope you are feeling well, you are in my thoughts and prayers!

Karen Monsour, Fort Lauderdale, Fl

Karen,

Good advice and a good reminder for me. I had someone charging on one of my credit cards about a year ago. I thought they got my ss#. I called one special 800 # and had a security alert put on all 3 credit bureaus for 6 months. I think I'm going to do it again. Any new credit in my name they have to call me. I can live with that. I rarely need new credit. I actually think it helps your credit score because there are none of those unsolicited inquiries and less junk mail.

I was going to do this and hadn't. Thanks for the reminder. Also, I'm from KANSAS!!! (Though I work quite a bit in Missouri.) Why does that silly widget you and so many have ALWAYS say I'm from Missouri? That's an insult out here! :) (Don't worry, Missourians feel the same way about Kansans.)

Karen - Great post and definitely worthy of that beautiful shiny star! So glad to see you're back in blogging mode. HOpe you're growing stronger with ever passing day. May God continue to touch you with His healing.

Karen, great post and information that will really be a benefit to us. Thanks for sharing!

Karen,

I had no idea we could do this. I fit into the category that would benefit by the freeze.

Thanks for the heads up.

SEP

2007

This is interesting. I am not sure we can do this in Arizona, but for other states it is a good thing.

Hi Karen,

Thanks for the information. Unfortunately, South Carolina doesn't offer this option. I have emailed my legislators asking that they look into it. You are such an invaluable source of great information. Please know how thankful we all are...

IT's great to see such a worthwhile and popular post about something so very useful! Thanks, Nancy

It is now standard practice that when you have an ssue with entries on your report that they put a fraud alert on your account. This security freeze is a great idea because of the epidemic of ID Theft.

What a great idea! I will share this site with everyone...

Karen, it is good to see you posting. I have mixed feelings on freezing credit. Like one of your other commenters noted you can "unfreeze" for the purpose of financing your house, etc but the real problem is how to do it. If you are not sitting in the credit grantors office you can't do that 10 minute telephone thing, plus you need to do it for all three bureaus separately. Also it plays havoc on your automated LOS's ability to download a tri-merge and populate the data into the LOS.

Bill Roberts

Thanks for the great info. I've never head of this before but I plan to pass it on to clients and agents in my office.

that is always a great tool to use. I have mine on a watch so I get alerts anytime credit has been pulled or if a new account has been established or if their has been any major changes to an account. great post!

Glad you promoted this issue. I am aware of it in Illinois.

Karen,

Thanks for the great information. North Carolina is on the list - I'll have to keep this in mind.

SEP

2007

Karen - Thanks for the info - it is worth checking into for many people.

SEP

2007

The thought of identity theft is concerning. This is good info.

Great tip! - not offered in my state yet, but will be great when it gets here. I have had my identity stolen twice. It would be nice to get a jump on the thieves.

SEP

2007

Great post. Thanks

Wow, thank you so much for sharing this. I will be doing this right away, what an easy way to stop worrying about identity theft. Kimberly

SEP

2007

Excellent point...This is a great idea... Thanks for sharing.

I didnt know that, Great thing to know

Great information, Karen. I was not aware of that, I read a comment about how bothersome it is to unfreeze your credit if you want to use it again. If it would help stop identity theft it will be worth it, I think.

SEP

2007

Karen this is awesome! So how long does it take to "un-freeze"...just in case one gets the impulse to buy a house? ;-)

I don't know Christopher! I hope it would be as quickly as they got the request. It is all computerized after all. They don't do it in Arizona; so I can't do it. But if you find the answer, be sure to come back.

Because of the unusual remarks I see from respondents to this post, I am rre-entering my reply info on this subject. The states do not control the Freeze, individuals accomplish this directly with the credit agencies. The 'unfreeze', i.e., credit pull, can be accomplished with a phone call.

I just finished working with a lending company and occasionally a credit check would ‘come back' with an Extended Fraud Alert on the account. This was via the Fair Issac with Equifax. The Extended Fraud Alert is placed on the account voluntarily by the individual.

I know the name Extended Fraud Alert does not really sound like something that the consumer would place on the account but none-the-less, that is what the title is. Anyhow, the EFA alert allowes for three options for the consumer to allow the ‘credit pull' against their name.

Option 1. was for them to put an alpha-numeric code (password) on their credit report and we could merely ask them to tell us the code over the phone.

Option 2. was for them to have us call them back at a preset phone number that was on the credit report.

Option 3. was 1 & 2 combined; call them back at the phone in the credit report and have them validate the password.

I am not sure about this 'state' involvement/approval. I think some of the states have mandated that the credit agencies (extortionists) can only charge you $10 for the Extended Fraud Alert feature. However, I think any credit account can get the Security Freeze / Extended Fraud Alert directly from the credit agency. If you live in a state where the $10 is not mandated, the credit agency probably charges approx. $35-75 per year. Go directly to the credit agencies and check with them Equifax, TransUnion, Experian. They are all http://www. xxx or abc or 123. com/. ( <<< silly computers) There is also a place called Innovis that does this for consumers. Also, the EFA is for 7 years unless you choose to end it prior to that.

After seeing what can happen to peoples credit, I have been thinking about doing it also. If your credit gets screwed up you can be screwed for years. Just the effort to straighten out your credit from a credit fraud can be enough to drive a sane person crazy.

Thanks Dwight. I agree with you, but I didn't / don't have the surety to say what you said. But I do agree. Thanks again.

OCT

2007

Choicepoint has recently announced that some customer’s personal information was compromise by imposters who identified themselves as legitimate operators.

Choicepoint was a company that spun out of the data revolution. In a short seven years, this company had collect records on almost every living adult in the US. It is a large data compiler, which also buys data from as well as collects info that is sold to governments, FBI, major corporations, credit bureaus, insurance companies and others for credit cards, employment and many other purposes.

When word came out about this it was characterized as a major national security issue. It is very had to get a hold Choicepoint and it has been suspected for some time that there is no accountability as to what this company does with information it collects.

Research this for yourself and see if you can find info as it is expected that 10 million records were affected. The Federal Trade Commission is supposed to be investigation this breach of security.

OCT

2007

I never knew about this what a great idea!

DEC

2007

If your purse is lost or stolen that might be a great idea until you get things back. It don't take long to do a lot of damage.

Happy holidays

NOV

DEC

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Stop Identity Theft Cold: Freeze Your Credit

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