Your credit report holds a lot of personal and financial data, so one must be very cautious to ensure it does not fall into the wrong hands. The thing many people attempt to do to safeguard their credit reports is to “lock” them, but what does this mean, and is it possible to lock all of the three credit reports? Let’s delve deeper into the discussion.
What is a credit reporting lock?
Credit report lock freezes your credit report and scores, which means you have to provide permission for them to be accessed. This reduces the capacity of identity thieves to open accounts using your information, in the credit reporting companies. When your credit report is locked, the credit report cannot be accessed by other people, including the creditors, unless they have your consent.
There are three main national consumer credit reporting agencies (CRAs) that produce credit reports:
- Equifax
- Experian
- TransUnion
Every CRA has an option to freeze your credit through the website. This freezes your credit file, that way CRA cannot share your credit report with most people out there. There are some dissimilarities – creditors and other bodies may still obtain entries in locked reports for legal reasons. However, overall, it removes a great deal of possibility for someone to take over your life financially and ruin it without your knowledge.
An added advantage of a credit lock over a credit freeze is that the former is free and can be toggled on and off as desired. A credit freeze also offers the same kind of protection but where credit monitoring allows you to set up, modify, and remove monitoring for all three CRAs at once and for free, a credit freeze requires you to contact each CRA directly, pay a fee to place and lift a freeze and wait for it to take effect.
Are all three credit reports able to be locked?
Yes, you can freeze all three credit reporting agencies’ reports individually. The three main credit reporting agencies each have their own methods of locking and unlocking credit files.
Here are the basics on how to lock your credit reports at each CRA:
Equifax Credit Report – Locking
Equifax allows you to toggle your credit report access on and off for free through the online platform or the Equifax app. It is very easy to use; you only need to sign up, make a confirmation of your account, and then find the lock/unlock option. Thanks to Equifax, you can lock and unlock your report right now and as often as you wish – for free.
How to protect your Experian Credit Report
Another benefit of choosing Experian is the opportunity to receive free credit report locking and unlocking by the Internet site and application. Experian credit report does not limit you in any way but you can lock and unlock it in the blink of an eye. Similar to Equifax, you have to register your account, then confirm your identity and then you can control the lock/unlock function.
LendKey Credit Report Information Of Transunion
TransUnion has now offered the option of locking and unlocking the TransUnion credit report via their website or their mobile application. Sign up, go through the process of identity verification, and then you will be able to control the lock immediately. This is something that can be done without a cost implication.
However, one point of consideration with TransUnion is that although they offer identity restoration services, they charge for them. You also require paying if you are unfortunate to be involved in an identity theft case to address concerns regarding your TransUnion credit report. The other CRAs offer free victim services to the victims of crime.
Is it advisable to lock all three credit reports?
Yes, although it may be overkill you should lock all three of your credit reports to prevent fraudulent access. It is a way that identity thieves use to open up fraudulent accounts since they pull different reports; you find that locking only one report means that you are not fully protected. With Equifax, Experian, and TransUnion credit report locking you stop any unauthorized individual from accessing your reports or credit scores.
To some extent, locking all three reports helps to be at ease. Hence, because it is free and very convenient to lock and unlock each every time desired, all three should be locked. The slight inconvenience is worth bearing to ensure that your good credit standing is safeguarded.
The only drawback is that when you are in a right and legitimate need to unlock your credit, say apply for a loan or credit card, then all three reports are locked. However, they are easy to unlock with a few touches through each CRA’s website or the CRA app. It simply follows that it is convenient to plan a little whenever you expect that you will need your credit reports.
It is especially relevant to mention that while locks offer protection from credit reports, they do not guard against identity theft or fraud. While it is very helpful and provides a level of protection that wasn’t previously possible, you still need to monitor your statements, report suspicious transactions, set up account alerts, etc. Credit reports should be locked the same way you lock your doors at night – as one of the layers of security.
Is there a way to freeze credit reports for free and do it indefinitely?
At present, yes – all three credit bureaus Equifax, Experian, and TransUnion offer the free credit report locking feature permanently and they have no plans to change this feature. While lock has always been free at each of the three major CRAs, the freeze was available without any fee and without any time limit. They still keep on encouraging people to use credit locks as the best way of preventing unauthorized parties from accessing credit reports for free.
However, free credit locks for life are not federally mandated programs and it means that the offer can be withdrawn at the will of each company. In theory, one or more of the CRAs could decide in the future to start charging fees or limit the free locks. However, for now, assume that you can keep your credit reports locked without owing any amount for an unlimited amount of time. However, you just need to be aware of any changes in the policies of the company.
Credit reporting has become a critical way of protecting oneself from identity theft and fraudulent borrowing through credit report locking. The best thing about it is that the service of locking your Equifax, Experian, and TransUnion credit reports is free and may be done as often as possible to guard your credit status and personal information. However, let it be known that locks are not the ultimate defense mechanisms, and therefore, watch account statements and alerts along with the locks. However, when employed properly, locked credit reports help offer much-needed mental relief.
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