In the past year alone, we’ve witnessed significant data breaches affecting millions of people. Companies like Mr Cooper, North Kansas City Hospital, and many more who may have a letter sitting on your desk right now. With the increasing risk of identity theft, it’s more critical than ever to take proactive steps to protect your financial health—and freezing your credit is a key strategy.
Robert Mohon, a seasoned real estate investor and Professional Borrower, frequently shares valuable tips about managing credit on his Facebook page. Visit Robert’s page here for more great content.
Recently, Robert shared an insightful article written by George Skidis, explaining the importance of freezing your credit and outlining the steps to do so. Below, we present George’s detailed guide below:
Why to Freeze Your Credit
Freezing your credit, also known as a credit freeze, is an important step to protect yourself from identity theft and prevent others from opening new accounts in your name.
As a real estate investor, having an un-marred credit report is essential to obtaining the best loan and mortgage terms. If your credit and identity are damaged, you may be unable to buy that next deal you find.
- The credit freeze is free.
- The credit bureaus require a PIN or password to manage your freeze.
- Thawing or lifting your freeze is free.
- Freezing your credit won’t affect your credit score or prevent you from accessing your own credit report.
- You can temporarily lift the freeze if you need to apply for credit.
Reasons to lift a freeze include applying for a mortgage, car loan or a new credit card.
Monitoring Accounts: Even with a freeze, continue monitoring your accounts and credit reports for suspicious activity. You can obtain one free credit report per week (since the pandemic) from each of the three credit bureaus.
Get your report today and check for errors. This helps you stay on top of your credit.
How to Freeze Your Credit
What you’ll need to provide:
- Full name, address, date of birth, and Social Security Number.
- Proof of identity, such as a driver’s license or utility bill, may be required.
- What you might need:
- Answers to questions about prior loans and mortgages.
- Make and model of your car and where you bought it.
All three credit bureaus let you freeze your account online, over the phone or by U.S. Mail. By *far* the easiest to manage over time is setting up an online account.
Equifax
Online: Visit the Equifax website.
Phone: Call 1-800-685-1111 (automated line available).
Mail: Send a written request to Equifax Security Freeze, P.O. Box 105788, Atlanta, GA 30348-5788.
Experian
Online: Go to the Experian website.
Phone: Call 1-888-397-3742.
Mail: Write to Experian Security Freeze, P.O. Box 9554, Allen, TX 75013.
TransUnion
Online: Visit the TransUnion website.
Phone: Call 1-888-909-8872.
Mail: Mail a request to TransUnion LLC, P.O. Box 160, Woodlyn, PA 19094.
Steps to Freeze Your Credit
Here’s a step-by-step guide on how to freeze your credit with TransUnion, but the other companies are very similar.
Option 1: Online Credit Freeze
Step 1: Go to the TransUnion credit freeze page: TransUnion Credit Freeze.
Step 2: Create a TransUnion account or log in if you already have one.
Step 3: Follow the prompts to verify your identity. You will need to provide personal information such as:
- Full name
- Social Security Number (SSN)
- Date of birth
- Address
Step 4: Once your identity is verified, you can place a freeze on your credit report.
Option 2: Phone Credit Freeze
Step 1: Call TransUnion’s credit freeze hotline at 1-888-909-8872.
Step 2: Follow the automated instructions to request a credit freeze.
Step 3: You will need to provide your personal information, such as your SSN, and possibly answer security questions to confirm your identity.
Step 4: Once completed, you’ll receive confirmation that your credit has been frozen.
Option 3: Mail Credit Freeze
Step 1: Write a letter requesting a credit freeze. Include the following details:
- Full name
- Address
- Date of birth
- Social Security Number
- Copies of identifying documents like a government-issued ID and a utility bill or bank statement for proof of address.
Step 2: Send the request to:
TransUnion LLC
P.O. Box 160
Woodlyn, PA 19094
Step 3: Wait for a confirmation letter in the mail indicating that your credit has been frozen.
How to Lift or “Thaw” your Credit Freeze
If you need to temporarily or permanently lift the freeze, you can do so:
Online: Log in to your TransUnion account and choose to lift the freeze.
Phone: Call 1-888-909-8872 and follow the prompts.
Mail: Send a request to the same P.O. Box.
It is estimated that it takes 900 hours to repair your identity and credit after a significant breach. There can also be Medical identity theft as well. Consider an identity theft monitoring plan that includes restoration.
Robert Adds: Your homeowners or renters insurance policy may provide help with identity theft)
Step 1: Contact Your Homeowner or Renter’s Insurance company
Ask if they can help. Specifically, ask if there is a provision for identity restoration. Many insurance companies started adding this protection for free or very little charge a few years ago.
Step 2: Follow the Instructions in the Data Breach Letter(s)
You’ve probably gotten letters over the recent couple of years about your information being involved in yet another data breach or the “MoveIt”software healthcare data breach. In those letters, it will have instructions on how to proceed if you believe you have been a victim of identity fraud. Follow them.
Step 3: File a Police Report.
Call the non emergency line and NOT 911. Likely this report can be taken by them over the phone. All the police departments know that a police report is typically required in a fraud loss. But they’re not going to send a squad car out to write up something like this. (And you wouldn’t want them to.) Get a copy of that as well as the report number. Keep it in a safe place because you’re going to need it over and over as you begin the restoration process.
Step 4: File a Fraud Claim.
File a fraud claim with your bank or the money came from. I realize you probably don’t have a legitimate account there, but you should definitely file a fraud claim with them. Do it over the phone and then follow it up in writing, certified mail. Certified mail shows that you want the extra mile to legally and officially notify them. You’ll want to include a copy of that police report when you notify them.
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