Credit Report News, Tips & Advice
Website CertifiedPrivacy Protected

Freezing points in your Credit Score

By Andy Snyder
Published: Tuesday, February 9th, 2010

Identity theft is a serious threat to everyone. It is not just about your financial aspect that can be greatly damaged but you and your entire reputation can also be put at stake. Following credit report advice on how you must handle disclosing of information to others however can help in lessening the probability of being a victim of this crime. 

To protect our credit reports we can actually request the credit bureaus to flag a fraud alert on our file. This would require your permission before a new credit account can be opened under your name. The lame part on this alert is that it never necessitated creditors to consider being “alert” about it before starting an account, thus ending up useless. In protecting credit reports, not until recently, another innovation was created to improve consumer’s welfare, it is called credit freezing. 

What is this credit freezing? Can this one work better than the fraud alert? 

When you requested for your credit report be frozen, no one can have access to it. If other people would try to open an account under your name, it wouldn’t be successful. How? The company to which someone else is trying to open an account with would contact the three main credit reporting agencies to request an access to your file for the credit checking process, but this request would be denied because your file is frozen. 

You will be provided by a personal identification number and this will allow you and you alone to have full right over your credit report. It is therefore you who will decide who can view your file and when. In this case it is a credit report advice that you keep safe of this PIN for this is one way to have your privacy protected regarding this matter. 

It is important to know that credit freezing is not available for everyone. The law providing the possibility of security freezes on credit reports is state-specific. The state of California pioneered the passing of such law in 2003 while others followed, others remain adamant about it. 

Who can apply for credit freezing is also state-specific but in general the following can be considered: victims of theft, victims of stolen or tampered mails, victims of stolen credit card number and those who are not victims yet but are aiming to protect themselves against identity theft. 

Credit freezing can protect you against creating new accounts under your name if the creditor will do a credit check before anything else. This way credit freeze can help you prevent being an identity theft victim. But we must be reminded that identity thieves have a lot of creative ways on how to perpetuate their wrong doings and creation of new accounts is just one among the many. Thus credit freezing cannot guarantee you of anything. Hence keep hold of the credit report advice and use them as preventive measures. 

Authorities are trying to help us deal with problems such as identity theft by providing laws that can somehow help us. However, we still do not have a perfect kind of law that would give us the maximum protection that we all desire. Perhaps nothing is really perfect for there are always loopholes. This might be a reminder for us to take part on everything to make things more effective. By simply understanding credit report advice we can actually protect ourselves. By ourselves alone, we can actually avoid being in trouble.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.