Credit Report Lock-Up – Does which Work?
- April 6, 2017
- Posted by: marlenedubois
- Category: CPR Training
The growing problem of identity theft has spawned a completely new industry aimed at keeping your credit information safe by “locking” your credit file. These companies typically charge a monthly fee for their services. One such company advertises which they will pay you 1 million dollars if your identity is usually stolen while you are an active user of their services. When you get behind all the advertising hype, the vital question is usually whether or not the monthly expenditure is usually worth which.
producing a request of the credit bureaus to lock your report does not mean your files will remain locked indefinitely. In theory a credit report lock or security freeze lasts indefinitely. In actuality, the lengths of security freezes vary through one state to another. In addition, credit bureaus require the consumer to “renew” the locks after a given period of time. Since there is usually no limit to number of renewals, one’s reports can be under a security arrangement for life… however only if the requests are renewed.
One myth surrounding which arrangement is usually which locking your credit report means the content is usually “frozen” at the moment in time when the security lock is usually put in place. which is usually totally untrue. The lock means access to your information by completely new sources is usually severely restricted, however completely new information still continues to be added. So if you increase your use of current accounts or make payments late, which information will still affect your credit scores.
Even during lock-up, your credit information is usually still available to those companies with whom you already have open accounts. Likewise the data remains available to employees of the credit bureaus, governmental officials, insurance companies as well as potential employers who have your permission. So, are there benefits in paying the fees required to place a security freeze on your credit report?
Locking your credit report prevents completely new accounts through being opened in your name without your knowledge as well as consent. In order to establish completely new credit, you must temporarily unlock your credit file through a specific procedure. In which way, the lock provides protection. With constant growth of credit identity theft, lock-up may be something you need. If you are likely to establish several completely new credit accounts in rapid succession, however, the cost as well as inconvenience of a security freeze may work to your disadvantage.
One cautionary note is usually in order. Putting a credit report lock-up in place is usually often oversold by companies profiting through implementing which service on your behalf. While locking your credit does have value, which answers a very tiny portion of the identity theft dilemma. There are additional aspects of identity theft in addition to direct credit-related crime. One of the additional dimensions of the problem is usually theft of benefits, an area called Medical Identity Theft. The impact of which kind of theft can be life-threatening as well as financially devastating.