Credit Freeze

At WikiFinance we strongly recommend staying up to date on your credit, and keeping your credit frozen when not in use.

A credit freeze restricts access to your credit report, preventing anyone—including fraudsters—from opening new accounts in your name. This is particularly useful if you’ve been a victim of identity theft or fear your personal information has been exposed in a data breach. On the other hand, unfreezing your credit is necessary when applying for loans, credit cards, or other services requiring a credit check.

While freezing and unfreezing are free and relatively simple processes, they do require signing up for each of the three major credit bureaus individually: Equifax, Experian, and TransUnion.

One of the primary reasons we at WikiFinance recommend freezing your credit when not n use is that fraudsters can exploit credit reports in several ways. If they gain access to your personal information—such as through phishing schemes or data breaches—they can use it to open fraudulent accounts in your name. For instance, they might apply for credit cards, take out loans, or even secure mortgages using stolen identities. Fraudulent activity often appears as unexpected hard inquiries or unauthorized accounts on your credit report. 

Freezing your credit offers robust protection against unauthorized access to your credit file and gives peace of mind in the event of identity theft. However, it’s not foolproof; existing accounts can still be exploited, and you must actively monitor your financial statements for irregularities. Understanding how the three major bureaus operate and how fraudsters manipulate credit reports underscores the importance of proactive financial security measures like regular monitoring and timely freezes or unfreezes.