What is a credit freeze?

A credit freeze is a tool that consumers can use to help protect themselves from identity theft and fraud. It is a way to “freeze” access to your credit report, which means potential creditors will not be able to access your credit report or score to approve new accounts. A credit freeze does not prevent you from using your existing accounts. In New Jersey, credit freezes are regulated by the New Jersey Credit Card Dispute Resolution Law, which requires the three major credit bureaus to provide consumers with the right to set freezes on their credit reports. When consumers set a freeze, they will get a PIN (personal identification number) to use when they want to lift the freeze. This PIN will be needed whenever the consumer applies for new credit. A credit freeze is a useful tool for consumers to protect their personal information and to prevent identity theft. It is especially important if you suspect, or have been the victim of, fraud. Credit freezes are available to any consumer, regardless of age, and do not affect credit score. A credit freeze is one of the most powerful tools available to help protect your identity and financial information. It is important to understand the process and requirements to set up and use a credit freeze in New Jersey.

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