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What Is Credit Freezing And How Can I Use It To Protect Me?

By Derek Brown
Published: Wednesday, December 15th, 2010

The threat of fraud nowadays is just around the corner. The troubles it can leave us with can seriously damage not just in a single facet of our life but it can ripple its effects influencing our entire life. To avoid being victims of fraud the first guard we have to put up is being wary in disclosing any of our information to people.

Identity thieves for instance can be very creative in extracting personal information about you from you yourself. They can create a bogus online transaction to which you will be asked to feed them with pertinent information about you to be able to complete your transaction with them. They can allure you with a counterfeit phone call and ask you for the same identification information. Once you gave in providing them your information you are also giving away your identity for them to steal.

Thieves will spend every single cent from your accounts moreover they can also open other accounts under your name, make big time purchases leaving you totally bankrupt. This is the worst nightmare in today’s world of credit-cased economy and this can happen to me or to you, no exemption.

To protect us from this distressing scenery we can actually request credit bureaus to flag a fraud alert on our credit file. A fraud alert would require your permission in case an account will be opened under your name however this fraud alert is ineffective since creditors do not consider this alerts before they open an account.

Another way to keep your record protected to some extent is freezing your credit report. If you requested your account to be frozen no one other than you can access your information. You will be assigned with a personal identification number to have an access to your account thus you have the chance to decide who can view your information and who cannot.

This service however is not available for everyone. People who are victims of theft, stolen credit cards, stolen or tampered mails are the most common people who generally can apply for credit freezing.  Who can use this service is state-specific matter.

In case of identity theft the perpetuator will not be able to open new accounts under your name if the creditor will exercise credit check before proceeding to creating a new account. This is the best thing freezing can do for you. Indeed it can only protect you to some extent.

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