SAN JOSE, Calif., August 27, 2024–(BUSINESS WIRE)–One way criminals steal money is by opening new credit accounts in someone else’s name. If you think someone has your personal information, you can use credit freezes or fraud alerts to protect yourself from fraud. However, credit freezes and credit freezes do not completely prevent access to your credit reports or FICO® Scores.

For more information on credit, visit myFICO’s blog at https://www.myfico.com/credit-education/blog

Credit freezes vs. credit freezes vs. fraud alerts

Credit freezes, credit defaults, and alerts are all protective measures, but each option works differently:

• Credit freezes: Credit freezes, also called security freezes, limit access to your credit reports. You can add and remove freezes at any time for free, but you must manage your credit freezes separately with each credit bureau (Experian, Equifax, and TransUnion).

• Credit freezes: Restrict access to your credit reports, similar to credit freezes, but credit freezes are generally a feature that comes with a free or paid account with one of the credit reporting agencies.

• Fraud alerts: A fraud alert doesn’t restrict access to your credit report. Instead, it tells creditors that you may have been a victim of identity theft and that they should take extra steps to verify your identity before opening a new account. You can add a fraud alert to one of your credit reports, and the bureau will forward your request to the other two.

Credit holds and freezes are two ways to limit access to your credit report.

If your credit report is frozen or locked, the bureau won’t share it with creditors who make credit decisions. The creditor may automatically deny the application if they can’t see your credit history or get a FICO® Score based on the report – even if you’re the applicant.

Therefore, credit freezes can protect you from fraudulent claims. However, you should also release or unfreeze your reports before submitting a legitimate claim. This is often a quick and easy process, and you can temporarily release the reports and then automatically unfreeze them again to protect yourself.

Who can access your frozen or blocked credit reports?

Although credit freezes limit access to your credit reports, credit bureaus can still send your report and your FICO® Score to certain people and organizations. These include:

• You: You can check your own credit reports and FICO® scores at any time.

• Your current creditors: Your lenders and card issuers may also continue to review your credit score, which they may do to manage your account. For example, your card issuer may increase your credit card credit limit if it sees that your FICO® Score has improved.

• Certain government officials: In certain situations, government agencies and their employees may still be able to access your credit report, such as when there is a court order, warrant or subpoena.

• Landlord: A landlord or property manager may want to check your credit and FICO® Score before offering you a rental property or determining the amount of your security deposit.

• Insurance companies: In some states, insurance companies may check credit reports and credit-based insurance scores to help decide who to offer policies to and what premiums to charge.

• Telecommunications and utility providers: Your credit history and FICO® Score can also affect your options when you want to open a new phone or utility account.

• Employer: Employers may sometimes check a person’s credit report before offering them a job or promotion, but employment and background check reports are not part of the FICO® Score.

• Other companies that do not make credit decisions: Businesses may also access suspended credit reports to verify your identity, collect debts, and for marketing purposes. However, you can opt out of receiving pre-approved credit offers from businesses at OptOutPrescreen.com.

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Regardless of whether your credit report is frozen, only people and organizations with a legally defined, permissible purpose can obtain copies of your credit reports.

Is it worth freezing your credit?

Locking your credit doesn’t completely block access to your credit report or FICO® Score. You’ll need to remember to unlock your reports before applying for a new credit card or loan. However, it’s still a free and easy way to protect yourself from credit fraud. Additionally, you can lock your reports with other consumer reporting agencies to protect yourself from other types of fraud.

And even if your reports are frozen, you can still access and monitor your FICO® Score from FICO for free.

About myFICO

Get your FICO® Score for free from the people who create FICO Scores. Plus, get free Equifax credit monitoring and a free Equifax credit report each month. No credit card required. Learn more at https://www.myfico.com/products/fico-free-plan-a

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Contacts

Elizabeth Warren
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