Identity theft has somehow become a nation concern, according to some identity theft insurance reviews there are almost 10 million victims in the US and counting. Identity theft credit freeze is a type of identity theft protection, which secures you from frauds to enter your account information, credit reports and history. When you freeze your credit report, your creditors and lenders are not able to check your credit score (a value assigned to your credit report) unless you have been given a password by the credit bureau. You can freeze your credit report if you have already been a victim of identity theft; your credit card number has been stolen, if you are subscribed to credit monitoring service. Password protection is not common until now but according to some identity theft insurance reviews, it has been learned that by the end of this year all the three credit bureaus of US TransUnion, Experian and Equifax will allow customers to freeze their credit reports.
Different states have different laws relating to security freezes on credit report. Some states have certain laws, which the consumers have to go through to freeze their credit report. However, states like Alaska, Michigan, Ohio Virginia and few others don’t have such laws and allow consumers to voluntarily freeze their credit reports. In most states, the freeze remains in effect until you remove it. However, there are some of the states where the freeze expires after seven years.
Identity theft protection freeze do provide a greater level of protection, but just because it provide security and freeze your credit report does not mean you should instantly go for it. two things you should consider before freezing your credit report; first is the
TransUnion and Experian do not charge anything to the identity theft victims to freeze their account. But, consumers who are not a victim yet but still want to put a freeze on their account they must pay a fees of $10 to each of the bureau for a freeze password, unless they live in those states who have a lower fee. Details of Equifax have not published yet but if it has the same law then for freezing the credit report you have to pay $30. When applying for car loan or any other type of credit, banking institution normally view clients credit reports. For that purpose if you desire to temporarily suspend the freeze then you each bureau will charge you $10 for suspending the service. Second thing you must consider
Usually consumers have been unaware of how often their credit reports have reviewed. If your cell phone has stolen or you loose it, then your provider will not give you the new one until it reviews your credit history. Similarly you have to suspend your credit freeze if you intend to apply for a new job, to get insurance policy or buy an apartment. Some reports have also revealed that credit freeze does not guarantee 100% protection. If a lender or creditor bypasses the credit check, your account can be opened by an identity thief.
Many experts believe that in spite of freezing your credit report, people should go for fraud alert. It is a type identity theft protection service that requires creditors to contact you before issuing credit in your name and on top of that fraud alert is free. It must be noted that because of its overuse fraud alert provides little consumer protection because lenders and retailers does not take it seriously and importantly they are not bound to it.