WalletPrep

PrintBack to the lesson

WalletPrep worksheet · Credit

How do you freeze your credit, and should you?

Name ____________________ Date __________

Key ideas

  1. A freeze is free at all three bureaus. Federal law has required Equifax, Experian and TransUnion to place and lift a freeze at no cost.
  2. A freeze does not hurt your score. It only controls who can see your report. Your score, current cards and loans carry on as before.
  3. Lifting a freeze takes 1 hour or less. Online or by phone, the bureau must lift it within 1 hour. You can set it to come back after 7 days.

Vocabulary

Credit freeze
A free block on your credit report that stops most new lenders from seeing it, which makes it hard for a thief to open accounts in your name.
Credit report
A record of your credit accounts, payments, balances and some public records, kept by each of the three credit bureaus.
Credit bureau
A company that collects your credit history and sells reports to lenders. The three nationwide bureaus are Equifax, Experian and TransUnion.
Fraud alert
A free note on your credit report that tells lenders to verify your identity before opening new credit in your name.

Work it out

Sam, 27, got a letter saying a store he shopped at had a data breach. He freezes his credit at all three bureaus that night.

  1. Freeze at Equifax
  2. Freeze at Experian
  3. Freeze at TransUnion
  4. Bureaus frozen
  5. Fee to freeze, all three
  6. Fee to lift for a car loan
  7. Fee to freeze again after
  8. Total cost
  9. Time limit to lift online

Check yourself

  1. What does a credit freeze do to your credit score?

    • A. Lowers it a few points
    • B. Nothing, your score stays the same
    • C. Raises it while it is on

  2. You place a freeze at all three bureaus, then lift one for a loan and later freeze it again. Each step is free. How much did you pay in total?

    • A. $0
    • B. $10
    • C. $30
    • D. $50

  3. Which option needs a call to only one bureau to cover all three?

    • A. A credit freeze
    • B. A credit lock
    • C. A fraud alert

Your turn

Set aside 30 minutes. Place a freeze at Equifax, Experian and TransUnion through their official sites, and save each login or PIN in one safe place with the bureau's name next to it.

www.walletprep.com/learn/credit-freeze/ · Free to print, copy and share for non-commercial classroom use.

Answer key

How do you freeze your credit, and should you?

Work it out

  1. Freeze at Equifax1
  2. Freeze at Experian1
  3. Freeze at TransUnion1
  4. Bureaus frozen= 3
  5. Fee to freeze, all three$0
  6. Fee to lift for a car loan$0
  7. Fee to freeze again after$0
  8. Total cost= $0
  9. Time limit to lift online1 hour
  1. Sam places a freeze on each bureau's site: 1 + 1 + 1 = 3 bureaus. He saves each login or PIN in his password manager.
  2. Six months later he applies for a car loan. The lender pulls one bureau, so he lifts that freeze for 7 days.
  3. Every step is free by law: $0 + $0 + $0 = $0. After 7 days the freeze comes back on by itself.

Check yourself

  1. B. Nothing, your score stays the same A freeze only limits who can see your report. It has no effect on your score.
  2. A. $0 Federal law makes placing and lifting a freeze free: $0 + $0 + $0 + $0 + $0 = $0.
  3. C. A fraud alert A fraud alert asks lenders to verify it's you, and the bureau you contact must pass it on to the other two. A freeze has to be placed at each bureau.