By law, American consumers can now freeze their own credit reports for free, preventing lenders from pulling their reports until they unfreeze it. Freezing a credit report can prevent identity theft by making it almost impossible for an unauthorized individual to open a new account in your name, or even your child’s name.
“The concept is clever considering how simple it is,” he said. “For the average consumer, it means they might need to plan ahead to unfreeze their credit report when they know they’ll need it, a small inconvenience when you consider the implications of significantly lowering the chance for identity theft.”
The information used to access one’s credit report, primarily social security number, is no longer as secure because it is kept in so many systems that can be compromised. The idea is for every one of us to create in addition a personal code we can use to control when our credit report can be accessed.
According to Benaroch, there are already apps on the market to facilitate the process of creating a personal code to protect and freeze a credit report. Overall, he said he recommends that everyone take steps to freeze their credit reports, a nuisance that pays dividends compared to what one deals with, if their credit is compromised.
“Most people don’t access their credit report every day so putting a lock on it makes it unusable and protected while the report is not in use,” he said. “In fact, for most people the credit report is a black box; they’ve never even looked at it and have no idea what’s there.”
Benaroch said this law is empowering consumers, giving them more control over their personal finance security.
“No one asked us if they could create a credit report for us. We just had to live with it. At least now, we can control access to it and that’s a positive move.”
Benaroch added that the real burden is on the credit companies that must process the freezes, and unfreezes, since they will have to verify identities each day.
Latest posts by Kerri Howell (see all)
- International Attention for Study of Entrepreneurship and Well-Being - October 16, 2018
- Leaders Share Entrepreneurial Success with Students - October 16, 2018
- WISE Women’s Business Center Relocates, Gaining Space for Growth - October 1, 2018