Some people don’t rely on credit very heavily. They don’t often need to apply for a loan — like a mortgage or car loan. They don’t open new credit cards. If you fall into this category — even if you just don’t expect to need new credit any time soon — you can freeze your credit. A credit freeze simply means that no one can look at your credit history: no one can pre-qualify you for a credit card, no one can open up a credit card account in your name and so on. All of this adds up to the fact that it will be incredibly difficult for someone to steal your identity.

Requesting a Credit Freeze

In order to freeze your credit, you’ll need to contact each of the three credit bureaus — Experian, Equifax and TransUnion. With each credit bureau, you’ll need to request a separate credit freeze. There’s typically a fee associated with a credit freeze, making it less worthwhile to set up if you’re expecting to need credit in the near future. The fee is often between $5 and $10.

You can arrange to have your credit unfrozen at any time. If you do find yourself in a position where you need to access your credit, it’s generally a matter of just contacting the credit bureaus to do so — though it can take a little while to make your information again available for credit inquiries. That means you’ll want to plan ahead if you expect that you’ll need credit for something in the future. You can also choose to unfreeze your report for just one company, as needed.

It’s worth noting that your credit report is used for more than just opening lines of credit these days. Many employers use credit reports as part of their hiring process. Many landlords also use credit reports to determine the suitability of a prospective tenant. If you find yourself looking for a rental or a new job, you may want to make a credit freeze known during the application process, remove the freeze or otherwise make your credit report available to a potential employer or landlord.

Better than the Alternatives

There are a number of companies that offer identity-theft protection. In general, such services are not particularly useful: many simply set up credit freezes for their customers and charge much more than a $10 for the service. Others offer only minimal help.

On your own, it is possible to limit the effects of identity theft by being vigilant about where your accounts are being used and reviewing your credit report on a regular basis. That system can be effective, but if you don’t need credit, freezing your credit can make it easier for you to track your personal information. It’s generally still a good idea to review your accounts even if you have a credit freeze in place: it will not protect your existing accounts and there are some methods of identity theft that involve gaining access to your bank account or other funds not affected by lines of credit.

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