Credit Guide

By: James Dimmitt

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In the wake of 40 million MasterCard, Visa, Discover, and American Express accounts recently being breached, consumers and legislators are scrambling for ways to protect their personal and financial information from being hijacked and used fraudulently by hackers and ID thieves.

The ability to see fraud only when it happens isn't enough, says Mr. Mitic. "Every consumer should be able to stop ID theft before it starts" through control of their financial information and credit given out in their name. TrustedID helps consumers use new "credit freeze" - - that let consumers lock their credit files so new lines of credit can't be opened unless they unfreeze their files first.

Credit Union One type of privacy protection being widely debated is the option to "freeze" your individual credit reports. Californians have been protected by such a law since 2002. Vermont, Texas, and Louisiana have also passed "freeze laws" and other states are taking a closer look at enacting similar types of consumer protection.

A security freeze (credit freeze) gives consumers the choice to "freeze" or block access to their credit file against anyone who may be trying to open up a new account or to get new credit in their name. When a security freeze is in place at all three major credit bureaus, an identity thief cannot open a new account. As of October 2007, only 33 U.S. states (plus Washington, D.C.) allowed consumers to place a freeze on their own credit file — which allows you to ban lenders and other businesses from viewing your credit report for up to seven years.¹ However, growing crimes in America, it should come as no surprise that more states are considering credit freeze or "security freeze" legislation. In fact, by the end of 2008, some industry experts predict that six additional U.S. states will adopt such legislation.²

Merchant Credit Guide Co Placing a freeze on your credit files with the three major credit reporting agencies - Experian, TransUnion, and Equifax - effectively shuts out potential lenders from accessing your credit files in order to make you an offer for credit. It would also protect your data from being used by identity thieves. When applying for new credit accounts or loans, consumers would use a special password to "unfreeze" their accounts.

A credit freeze allows an individual to place a "freeze" on their credit reports at Equifax, Experian, and TransUnion, the three major credit bureaus, so that the bureaus cannot release a credit report to lenders without direct permission from the individual. IDFreeze is the only consumer service that manages credit freezes with all three bureaus at once.

Apply Online For Credit Card Consumer advocates who support such a freeze point out that this type of privacy protection "prevents the damage before it occurs." Consumer action groups see this as one of the most effective measures available because it places the control in the hands of the consumer and not the data-collecting agencies who profit from selling consumer information.

It's also important to remember that even if you do initiate a credit freeze, you can still get a copy of your personal credit report . Also remember that a credit or security freeze will not lower your credit score. Consumer reporting agencies, lenders, banks and the like cannot state or imply that a credit freeze automatically reflects a questionable credit history.³

By Card Credit Debt Debt Guide Companies that sell credit file data, including the credit reporting agencies, argue that freezing credit files is "overkill." For some people, such a freeze could become a constant hassle. Before applying for a loan or opening a new bank account, they would have to contact the credit bureaus to temporarily unfreeze their files, a process that could take several days.

If you've ever applied for a job, charge account, insurance, or loan, there is a credit file about you. This credit file contains information on where you live and work, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Recent amendments to the Fair Credit Reporting Act (FCRA) have given consumers new power to fix errors found on their credit reports. The amendments, which became effective September 30, 1997, were designed to better ensure the accuracy and privacy of the information contained in consumer or credit reports.

Credit Repair They also claim it would prevent consumers from taking advantage of instant credit promotions such as "10% off purchases" when applying for a new store-issued credit card. And applying for a mortgage would become "more complicated, with even more paperwork."

Active Credit Credit Guide Whether you feel the option of being able to freeze your credit data is a good idea or a bad idea one thing is becoming increasingly clearer - consumers want more control over who has access to their personal and financial information.

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Bad Car Credit Guide Loan © 2005, http://www.yourfreecreditreportnow.com Author: James H. Dimmitt - James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book "IDENTITY THEFT- How To Avoid Becoming the Next Victim!" and other free bonuses by visiting http://www.yourfreecreditreportnow.com

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