Credit freezes are free and usually take less than an hour to set up. Here’s how you can get started.

In today’s digital age, data breaches are alarmingly frequent. According to FBI statistics, scammers and cybercriminals swindled consumers out of more than $16 billion last year.

While companies often provide credit monitoring after a data breach, the consequences can linger for years. A financial coach from San Diego, Cally Ingebritson, has guided clients through the aftermath of identity theft. She helped one individual freeze their credit to prevent any new accounts from being opened in their name.

“Credit freezes can be vital for someone recovering from identity theft to avoid further damage to their credit,” Ingebritson explains. “Unfortunately, the recovery process from identity theft can take quite a while, so any steps to mitigate the impact should be prioritized.”

Moreover, freezing your credit can serve as a proactive measure. Ingebritson shares, “I assisted my dad and grandmother with freezing their credit reports after they were diagnosed with Alzheimer’s and dementia. Individuals with cognitive impairments are extremely susceptible to financial scams, which is why I advise my clients to freeze their loved ones’ credit reports.”

According to Courtney Alev, a Consumer Financial Advocate, freezing your credit also minimizes your risk of identity theft. If your wallet is stolen or you’ve experienced a data breach, considering a credit freeze might be wise.

It’s never been simpler.

A federal law enacted after a breach at a credit reporting bureau allows you to freeze and unfreeze your credit at no cost in the U.S. Having frozen (and unfrozen) my credit for a credit card application, I can assure you that it’s not a hassle. The initial setup, which involves contacting all three bureaus online, took about 30 minutes, and unfreezing took just about 10.

Despite its simplicity, surveys indicate that only 10 to 20% of consumers have taken the step to freeze their credit. If you haven't yet, let’s get started!

Steps to Freeze Your Credit:

  • Contact all three bureaus. Reach out to Equifax, TransUnion, and Experian. These links direct you to the right places, no need to search online. If you'd prefer to call, you can contact Equifax at (866) 478-0027, TransUnion at (800) 916-8800, and Experian at (888) 397-3742.
  • Keep your PINs accessible. When you freeze your credit, you’ll receive PINs necessary for unfreezing later. Make sure to write them down and store them safely so you can access them when needed.
  • Do it for yourself and your children. Parents can freeze credit for children under 16, which is advisable. In recent years, millions of children have fallen victim to identity theft, often through “synthetic” identity theft, where a child's stolen Social Security number is paired with data from a real adult to apply for credit. This is critical because an adult will eventually apply for credit and may discover issues in their file. If a child’s Social Security number is compromised, the fraud might go unnoticed for years.
  • Check your credit and your child's. Regularly checking your credit is essential. You can do this for free at annualcreditreport.com. Each individual can obtain one credit report from each bureau annually. By checking one every four months, you can monitor your credit throughout the year. If a credit report exists for a child who has never applied for credit, it indicates a potential issue, and recognizing the problem is the first step toward resolution.