How to Lock Out Your Credit

Your credit report is important not only for the financial benefits you can get from good credit, such as lower interest rates on loans, but it is also important because it can help you detect identity theft and hopefully stop the criminal before too much damage is done. In order to protect yourself from people trying to steal your identity or open credit accounts in your name, you can put what is called a lock out or a freeze on your credit report. There is normally a fee involved, so you will have to decide if the protection is worth the fee.

Instructions

Locking Out Your Credit Report

1

Order a credit report from each of the three credit reporting agencies and scan them for any errors. According to federal law, you are entitled to one free credit report from each of the three main reporting agencies every calendar year. It may be beneficial to also join each of the three credit reporting agencies so that you can monitor your report on a regular basis. It is up to the consumer to be vigilant in monitoring credit history.

2

Submit any corrections to the agencies in the form of disputes. Credit agency disputes can be done on the Internet, over the phone, or through the mail. Be sure to make copies of everything you send to the credit reporting agencies, or make print-outs of the forms you have submitted online for your files.

3

Review the lock out terms for each of the credit agencies so that you understand their policies and know how much you will have to pay to lock out your credit report. In some cases, such as identity theft, a lock out will not cost you anything. But the act of unlocking and then re-locking a credit report will cost you. The fees vary by credit reporting agency and by state.

4

Call each of the credit reporting agencies and ask to have your credit account locked out. Make sure to make detailed notes of who you spoke to at each agency, the date and time you spoke with them and what you spoke about. Keep these notes, and any correspondence you receive from the credit agencies, in an expandable file folder for safe keeping.

5

After one week, call each credit reporting agency to confirm that the freeze on your account is in place.