What is a credit freeze?

A credit freeze is a consumer protection instrument that allows individuals to restrict access to their credit file. By placing a credit freeze on their account, individuals can prevent potential creditors from accessing their credit report, thereby preventing them from opening new accounts in the consumers’ name. This security measure is especially helpful in instances when an individual’s credit card or personal information has been stolen or is potentially at risk of being stolen. In Florida, consumers can place a credit freeze either free of charge or for a small fee, depending on the agency. The freeze can be removed at any time if the consumer decides to allow access to their credit report. To do so, the consumer must contact the credit reporting agency and provide a unique PIN or password. While a credit freeze does restrict access to credit files, it does not affect existing accounts or the ability to use a credit card. Additionally, the freeze does not prevent individuals from obtaining their own credit report or score. A credit freeze also does not prevent creditors from seeing approved credit checks. Creditors may still access the credit report when an account is being reviewed for credit limits, term extensions, or other account modifications. In addition to freezing an individual’s credit report, consumers can also request a fraud alert be placed on their credit file. A fraud alert is a notice to creditors to take additional steps to verify the applicant’s identity before extending any credit.

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What is a credit freeze?

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