Money Crashers: How to Lock or Freeze Your Credit and Why You Should Do It

When Equifax got hacked last year and let a bunch of people's personal data slip into the hands of thieves (oopsie, our bad!), I read a lot of articles urging me to freeze my credit. Although the experts argued convincingly that a credit freeze was the single best way to protect your stolen data from misuse, I was resistant to the idea. For one thing, it seemed like a lot of hassle: I'd have to contact each of the credit bureaus separately to set it up, and get a separate PIN from each, which I'd have to make damn sure not to lose or else I'd never be able to thaw my credit again. And when I did want to thaw my credit, I'd have to wait two or three days for the thaw to take effect, which would mean I couldn't just decide to, say, shop for a new auto insurance policy (a process that involves pulling your credit file) whenever I happened to have a few hours free. And finally, to add insult to injury, I'd have to pay for it—a separate $5 fee to each of the three bureaus.

Despite these objections, I finally did decide to go ahead and put the freeze in place (after I'd finished my insurance shopping). I figured I wouldn't need to open any new accounts for a while, and when I did, I'd just have to plan ahead and deal with the hassle and the expense.

Fortunately, as it turns out, I no longer have to. In fact, most of my objections to freezing my credit were overturned by a new federal law that took effect last month. You can now freeze and thaw your credit at will, without having to pay a fee, and without having to wait more than an hour when you want the freeze lifted. So nearly all the problems that made me hesitate to freeze my credit are now gone, while all the benefits that made me decide to do it after all still apply. In short, it's a better deal than ever.

In my latest Money Crashers article, I explain what freezing your credit means and outline the benefits of doing it, along with the few drawbacks that still remain. Then I explain how to do it with each of the three bureaus. I also talk about the potential benefits of freezing your child's credit to protect them from identity thieves, who view a child's pristine credit history as pay dirt. (Doing this is a lot more work than freezing your own credit, but it could be worth it for the peace of mind it gives you.)

How to Lock or Freeze Your Credit and Why You Should Do It