Comments on: Reader Question: Credit Freeze Worthwhile?

By: Mick

Mick — Tue, 01 Mar 2011 21:15:34 +0000

Shadox,

The analogy you make to the mob is entirely innaccurate.

The organizations that request and receive your credit information from the credit agencies are not the bad guys…The person pretending to be you is.

When this bad person approaches a lender, the lender is under the assumption that this person is you (given that the criminal has enough info to make them think this). The lender then requests your credit report just as they would if it were actually you.

Paying the fee to freeze your credit is paying a fee to inconvenience the system and account for processing costs which go along with this inconvenience. It is appropriate if you suspect your identity may be at risk.

By: Shadox

Shadox — Tue, 20 Nov 2007 11:19:50 +0000

I have no problem with the concept of a credit freeze – what I do have a problem with is that the credit agencies charge you for getting it.

As far as I am concerned this is like protection money – let’s think about it for a second. You collect personal information about me and charge me not to sell it to the bad guys?! What are you? The mob?

By: Flexo

Flexo — Tue, 20 Nov 2007 02:06:40 +0000

D4L: A credit freeze would mean that a prospective employer would not be able to retrieve your credit report. Same goes for insurance companies. You will have a chance to let requests through most of the time, once the the credit bureau verifies that you did in fact authorize the request. That can take days.

I would suggest not initiating a credit freeze if you are looking for a job or about the shop for insurance.

By: Yana

Yana — Tue, 20 Nov 2007 02:06:31 +0000

I would love to freeze my credit reports at all credit bureaus, but will not do it if I have to pay for it. I was once a victim of identity theft in the 90′s, and I do not use credit. I have a negative opinion of the credit bureaus, and consider them tacky marketers who do not work. To correct an identity theft can cost the victim $35,000 or more. Errors on credit reports are not corrected without consumer intervention and expense. This means the credit bureaus are not doing anything but collecting information, and not verifying that information. There is something very freeing about “opting out” of the credit game. Some might consider the downside to be the inability to purchase what one cannot afford, or the deprivation of the privilege of paying interest rather than earning it. I’ve also heard that home loans and car loans are “good” debt. I don’t see it that way. What I do see is that a credit score is something to hold over the consumer’s head, when an unscrupulous business wants to force an invalid payment from said consumer. (Think: cell phone companies/contracts, for starters) Excellent credit feels good, but getting away from it feels even better.

By: Dividends4Life

Dividends4Life — Tue, 20 Nov 2007 02:02:24 +0000

I have heard that insurance companies use your credit rating to help determine your rates; and many companies run credit reports on prospective employees. I assume a credit freeze would allow these to still occur?

Best Wishes,
D4L

By: Mrs. Micah

Mrs. Micah — Tue, 20 Nov 2007 01:27:25 +0000

I think when I’m a bit older and more stable it might make sense (not that I plan to open credit now, but I want the option I guess). Maybe by then it’ll be less expensive, too. :)

I dunno, I reserve the right to change my mind and freeze it at any point. :)