When a credit report freeze is done, the file becomes inaccessible from all unauthorized views. All new inquiries will be blocked and only the owner of the report can request for the freeze to be lifted. Once it has been lifted, only the specified company will be able to access the report. Furthermore, the credit report score owner can decide how long the account can stay open to new inquiries.

What if you want to apply for a new account? Before submitting application to your chosen lender, you need to request for the freeze to be lifted. Lifting or thawing can take only a few minutes to a few days depending on the credit bureau. As mentioned above, you can specify the company that will be given access to your report and for how long you want your account to be accessible.

Is it the same as fraud alert?

Fraud alert is an option to protect against fraud. When your credit report is on fraud alert, creditors are supposed to notify you if someone tries to open a new account under your name. However, some creditors may ignore the alert and approve a new application without first notifying the owner of the credit report.

Unlike a fraud alert, credit freeze is more restrictive. You can request for a fraud alert simply by calling the credit bureaus but if you want to request for credit freeze, you must send a letter through a registered post mail with at least 2 copies of proof of residency or identification. There is also a charge of $10 to $12 for each credit bureau.

Once your credit report score has been frozen, it will stay frozen for an unlimited time unless a request for a lift has been made. Take note that there is also a a fee of $10 to $12 for lifting and you will be required to provide the PIN code that you were given when your account has been frozen.

Despite the fees and minor inconveniences, placing your report on freeze is a great way to protect yourself from the risk of ID theft and fraud. It prevents identity thieves and scammers from committing crimes such as opening a new account using other people’s identity. Without access to the report, a creditor will not be able to grant approval to a new application. In addition, identity thieves will not be able to take a look into your credit file and steal information against you.

About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website EZCreditRepairSolutions.com. She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2010