Quote:
Originally Posted by SnoopyCool
I've also heard of freezing your credit. I don't know how this works either, but I'm sure a Google search would turn up the info.
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Freezing your credit prevents new accounts from being added to your credit report. So someone with your personal info could try to open a new CC in your name but have it sent to their address, but a freeze would prevent this. I believe this is one of the more common forms of ID theft.
If you lose your card or someone steals your wallet, a thief could still use it to ring up phony purchases, even if your credit is frozen. In addition credit freezes do not protect against check fraud (someone ordering and using checks from your account).
Credit freezes cost anywhere from $5-15 per bureau, per person to initiate, and a similar amount to temporarily thaw. A temporary thaw can last for any length of time to allow you to apply for new credit. The thaw is usually instantaneous and is done by giving the bureau your PIN number, which they will send you when you initiate the freeze.
EDIT: I forgot to mention that a credit freeze does not affect your credit score in any way.