A credit freeze is a service most credit agencies offer which allows you to essentially lock down, suppress or freeze your credit report.
Now, there are a few instances when this is very helpful.
For instance, in cases where identity theft has been detected or is suspected because it prevents anyone from opening new accounts in your name.
Or some people traveling abroad for a long period of time use this service as peace of mind so they don’t have to worry about ID theft while out of the country.
Or sometimes government officials use this service to hide their personal information from the public.
But for the most part, it’s a tool to prevent ID theft.
Here’s what you need to know:
- If anyone attempts to request a frozen report or open an account without your permission, the bureau won’t release it and the lender won’t be able to access your report.
- It’s really easy to freeze your report, you can simply call the credit bureau and request it. You can also remove a credit freeze just as easily with a phone call and within an hour they are required to lift the thaw or unfreeze your report.
- All credit bureaus are required to offer this service, not just the big 3 - but also supplementary bureaus like LexisNexis, Sagestream, Innovis and CoreLogic all offer it as an option.
Now, there’s a couple theories running rampid around the industry that claim freezing credit reports can help repair credit.
One of them is, if you freeze a credit report with the big 3 bureaus like Experian, Equifax or TransUnion then dispute an item on the frozen report - then the creditor or bureau will essentially have their hands tied and won’t be able to verify it.
And the other is, you can freeze supplementary credit agencies that provide information to the big 3 bureaus, and by doing so when you dispute with the bureaus they won’t be able to access the supplementary bureau and the item you disputed cannot be verified.
So for example, if you are disputing a bankruptcy - LexisNexis supplies public records like bankruptcies to the big 3 bureaus. So, you start by freezing LexisNexis and then dispute with the Big 3 bureaus.
The idea is, since Lexis Nexis is frozen, the big 3 can’t verify it and boom, it’s magically deleted.
That sounds amazing!
But is it true?
Unfortunately, like most things in life that sound too good to be true - it’s the same for these theories.
They simply are false.
Here’s why this is important:
The truth is, freezing credit reports in the attempt to stop the dispute process is crap and doesn’t work at all.
Suppression is only to prevent ID theft OR to hide information if you’re a government official or someone that could have harm done to them by making this information publicly available.
So the only thing freezing credit reports does in terms of credit repair is it stops lenders from accessing your reports, but IT DOESN’T stop the dispute process.
Now you may be wondering, then what CAN I do?
You can use our proven and effective methods we teach in our Basic Disputing Course. Methods for verification, disputing accounts, sending warnings, being persistent with reinvestigations, doing interventions, filing complaints, demanding validation and a ton of other real strategies that actually get you results.
Right now we’re offering that certification course for FREE inside our Credit Hero Challenge, where we walk you by the hand as you launch your very own credit repair business in just a couple of weeks AND for less than it costs to bring your family to McDonald’s for dinner.
To join the challenge and get the Basic Disputing certification course for free, go to www.creditherochallenge.com.
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