Credit Report Freeze: What You Need To Know
If you're worried about who has access to their credit report, a credit report freeze maybe a way for you to have peace of mind. But before you go ahead with this, you should be aware of the consequences of taking this course of action.
A credit report freeze is a security measure that you can put in place and the credit reference agency will then not release any information from your credit report without your consent. In order to lift the freeze, either permanently or temporarily, you will be given a password or PIN number.
If you're applying for credit and have a freeze on your report, you have to go through the following steps: You must supply sufficient information to verify your identity. You need to give the password or PIN number that you have been supplied with. You need to name the person to whom you are giving temporary access to your credit report.
The advantage of a credit report freeze is that it adds an extra layer of security to your personal information. This could make it more difficult for people to fraudulently obtain credit using your name.
However there are also some downsides. It will make the process of obtaining credit much slower. If you are going to be making a major purchase like a house or car, then the process of getting approved maybe extended. There are many instances when a credit reference agency maybe called upon that many people do not realise e.g. getting a new mobile phone contract, renting a new apartment or even applying for a job. All of these could be affected by a credit report freeze.
If you know that you are going to be applying for credit such as a mortgage in the near future, you should plan ahead and get your credit report freeze lifted in plenty of time. This will ensure that there are no hold-ups when you apply for credit.