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Credit Report & Credit Score; Credit Repair, Debt Management > Credit Report > Freezing Your Free Credit Report – The Perks and Quirks

Freezing Your Free Credit Report – The Perks and Quirks

By Ruth Racey
Published: Friday, September 4th, 2009

Identity theft is not an extraordinary thing these days – thousands of Americans have become victim of this unfortunate crime. Fortunately, there are certain things that we can do to further protect ourselves from infiltrators and scammers who are out to make thousands of dollars’ worth of purchases all on our expense.

One thing that you can do is to actually freeze your free credit report. If you are a bit worried about freezing your credit report, you shouldn’t be. Most credible credit monitoring services, if not all, actually offer a credit report freeze service – and this is even held as one of the more revered services that they offer.

However, if you do decide to free credit report, you have to be aware of the pros and cons that come with such an endeavor. Just like any other tool or scheme, there will always be both advantages and disadvantages. Thus, it is better to keep yourself as informed as possible before taking on any course of action. This way, you would not end up worsening the problem for yourself.

To start, here are the pros of freezing credit reports. The first advantage, obviously, is that you would reduce the chances of falling victim to identity theft, as well as the unauthorized usage of your credit account. Plus, when you do freeze your credit report, this would not have any negative impact on your credit score at all. And you are still allowed to open new credit accounts in spite of the freezing of your free credit report. In such an event though, you might need to lift the freeze of your credit report just temporarily – just long enough for you to open your new account. Lifting a credit freeze is quite fast so there are no worries to think about here – just as placing a credit freeze is as fast as well. Moreover, you can still ask for a copy of your credit report in spite of the freeze implemented.

One particular disadvantage, however, is that applying for mortgages, car loans, and other types of loans can become cumbersome if your credit report has been frozen. This is because it is virtually impossible for your potential creditors to check your credit score with the freeze in place. The wise thing to do here is to ensure the successful approval of all applications first before freezing your free credit report.

Also, implementing a credit freeze does not really prevent access to your existing credit file. Your current creditors as well as collection agencies would still have access to all of your credit information. Consequently, this means a credit freeze will not thwart off collection efforts for accounts that are deemed overdue.

These are just some of the pros and cons of freezing your credit report. Weigh each of them carefully so that you can make an informed decision in the long run.

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