What is a Credit Freeze?

By
Mortgage and Lending

Identity theft is now passing drug trafficking as the number one crime in the nation-with more than 15 million victims every year. Rather than lie awake at night worrying and wondering if your identity has been stolen, you can actually take a simple step to protect yourself...it's called a credit freeze (or, sometimes, a security freeze).

Here's How It Works. When someone tries to open an account in your name, they'll be stopped in their tracks. That's because one of the first things a creditor will do before opening the account is pull a credit report. By having a credit freeze in place, creditors aren't able to pull your credit report. And, since very few lenders will issue credit without first seeing a credit report, identity thieves can't open fraudulent accounts using your name. However, when you want to apply for credit, you can temporarily lift the freeze using a PIN... thus, allowing your legitimate application to be processed.

The Flip Side. It's important to remember that when the freeze is active, you'll have to lift the credit freeze before you can purchase a car, get a new credit card, or refinance a mortgage. For most major purchases, this won't be much of an issue. However, a credit freeze can be problematic if you want to open an instant credit card with a store.

To learn more about these issues and to find out if your state allows credit freezes, visit
www.ConsumersUnion.org/finance/creditfreezeinfo.htm.

Mortgage Interest Rates*

Rates as of Friday, 14th November, 2008:

 

Conforming

APR

Payment per
$1,000

Jumbo

APR

Payment per
$1,000

30-Yr. fixed

6.125%

6.265%

$6.08

6.500%

6.596%

$6.32

15-Yr. fixed

5.875%

6.107%

$8.37

5.875%

6.030%

$8.37

7-Yr. fixed ARM

6.250%

6.391%

$6.16

5.875%

5.967%

$5.92

5-Yr. fixed ARM

5.500%

5.635%

$5.68

5.625%

5.716%

$5.76

3-Yr. fixed ARM

5.500%

5.635%

$5.68

5.500%

5.590%

$5.68

5-Yr. Interest Only

5.625%

5.761%

$4.69

5.875%

5.967%

$4.90

 

 

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Licensed Mortgage Banker, NJ Department of Banking and Insurance. Corporation also services CO, CT, DE, FL, GA, IN, MA, MD, MN, MI, NC, NH, NY, PA, SC, TN, VA, & RI.

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Julie Staradumsky 11/14/2008 02:57 PM
  2. Christine Wade - Real Estate Virtual Assistant 11/18/2008 07:53 AM
Topic:
ActiveRain Community
Location:
New Jersey Atlantic County Hammonton
Groups:
Delaware Valley Region
South Jersey
New Jersey & Pennsylvania -- Realtors/Loan Officers/Title Clerks/Real Estate Lawyers
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Tags:
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Show All Comments
Rainmaker
224,219
Nancy Larson
I am a licensed referral agent in NJ - Hutchinson Island, FL

I was one of the clients who had her portfolio paperwork stolen via transport, so I truly understand the importance of a credit freeze.

Every day the thieves get smarter. I would prefer the freeze to the availability of my credit to someone who didn't take years to build.

Nov 15, 2008 11:00 AM #1
Rainer
108,048
Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Nancy - It's very scary to have your paperwork stolen.  Using a credit freeze is a minor inconvenience compared to the problems identity theft can cause.

Nov 17, 2008 04:16 AM #2
Rainmaker
194,826
Christine Wade - Real Estate Virtual Assistant
Christine Wade - Townsend, MT
Proud to Serve Your Real Estate Support Needs

I have heard of a credit freeze before, but didn't really understand it!  Great post, thanks for helping to clarify the information for me.  This info is useful for everyone, not just real estate professionals.

Nov 18, 2008 07:24 AM #3
Rainer
108,048
Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Christine - Thanks for stopping by and commenting.  This is definitely information that could help everyone.  You are welcome to re-blog it if you'd like so more people will see it.

Nov 18, 2008 07:46 AM #4
Rainmaker
194,826
Christine Wade - Real Estate Virtual Assistant
Christine Wade - Townsend, MT
Proud to Serve Your Real Estate Support Needs

Thanks, Karl - but I did better than that...I flagged it for a feature!  (I'm still scared of re-blogging, I haven't done it yet! LOL - since you gave me permission, perhaps I will try it with your article!)

Nov 18, 2008 07:51 AM #5
Rainer
108,048
Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Thanks Christine.  I've never had a blog featured before.  I'll give you carte blanch permission to re-blog any of my posts.  Most of my blogs are informative/educational.  The more people we can help educate, the better it makes our entire industry.

Nov 18, 2008 08:01 AM #6
Rainmaker
194,826
Christine Wade - Real Estate Virtual Assistant
Christine Wade - Townsend, MT
Proud to Serve Your Real Estate Support Needs

Thanks, Karl!  Good to know!

Nov 18, 2008 08:09 AM #7
Rainer
45,021
Jenn Neumann Deer
RE/MAX Southern Shores - Surfside Beach, SC
Surfside Beach Real Estate

Hey Karl!  Thanks for the information.  I had heard the term credit freeze but didn't really understand it.  Scary how easily information can be stolen these days!  A credit freeze may be a little annoying if you're trying to get instant credit at a store or somewhere but it would be preferable than having your credit stolen.

Nov 18, 2008 11:52 AM #8
Rainer
108,048
Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Christine - I'm glad to help.

 

Jenn - You are absolutely right.  I'd take a minor headache from time to time if it means I could avoid a migraine. 

Nov 19, 2008 03:19 AM #9
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Rainer
108,048

Karl Peidl

Accredited Loan Consultant
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