Credit Freezes and Their Importance
Understanding the significance of a credit freeze is crucial in protecting your financial identity. A credit freeze, also known as a security freeze, is a preventive measure that restricts access to your credit reports. This makes it harder for identity thieves to open accounts in your name because most creditors require access to a credit report before approving new credit. Even if a thief has your personal information, a freeze will stop them from utilizing this data to open fraudulent accounts. Credit freezes are now federally mandated to be free and you can place or lift them within an hour, all without affecting your credit score.
