Should You Freeze Your Credit Report?

No one plans to become a target of identity theft. Having your identity stolen can seriously damage your financial situation, not to mention take a toll on you mentally. Freezing your credit report is one way to combat ID theft.

Check Credit Report for Activity

You may already be on a schedule of checking free credit reports from the three major credit bureaus each year. Go a step further  and ask for a credit freeze. This basically seals your credit report and requires you to give a PIN number to thaw it for a short period of time when you apply for credit.

A credit freeze is free if you’ve already been a victim of identity theft. Otherwise it costs about $3 to $10 depending upon where you live.

Help with Debt

Not only can freezing your credit report keep away ID thieves, but it could help with debt you already have. You may be less likely to apply for a lot of credit if you have to go through the hassle of paying a fee (up to $10) each time you want to unfreeze the report. That can keep you from taking on new credit and give you more motivation to pay off existing credit card debt.

If you plan to apply for a mortgage, auto loan, or other type of credit soon, it may make sense to hold off on doing a credit report freeze until after that. Contact each of the credit bureaus when you are ready to freeze your report.

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