Identity theft and credit fraud aren’t just annoying inconveniences. They can derail your finances, damage your credit, and create months of cleanup stress. Unfortunately, many people don’t realize they’re victims until after the damage is done.

One of the most effective and underused tools to protect yourself is a credit freeze, also known as a security freeze.

Let’s break down what it is, when you should use one, and exactly how to set it up with the three major credit bureaus.

What Is a Credit Freeze?

A credit freeze restricts access to your credit report so that new credit accounts cannot be opened in your name without your explicit permission.

That means:

• No new credit cards
• No new loans
• No fraudulent accounts opened behind your back

Even if a criminal has your Social Security number, date of birth, and address, this stops them cold.

It’s important to note that doing this is free and does not affect your credit score.

Who Should Put a Freeze on Their Credit?

More people than you think.

You should strongly consider it if:

• You’ve been a victim of identity theft or credit fraud
• Your information was exposed in a data breach
• You receive suspicious credit alerts or collection notices
• You want maximum protection and don’t open new credit often

We work with many people who are high income earners, responsible savers, and tech savvy who still experience fraud. Identity theft isn’t about being careless, it’s about being exposed.

How to Place a Credit Freeze (Step-by-Step)

You must place a freeze separately with each of the three credit bureaus. Here are the direct links so you can do it quickly and securely:

Equifax 
Place, manage, or lift your freeze here:
https://www.equifax.com/personal/credit-report-services/credit-freeze/

TransUnion
Set up or manage your freeze here:
https://www.transunion.com/credit-freeze

Experian
Freeze or unfreeze your credit through Experian here:
https://www.experian.com/freeze/center.html

You’ll create an account with each bureau and can lift or temporarily unfreeze your credit anytime if you need to apply for credit in the future.

Will This Affect My Existing Accounts?

Many people think it does, but it:

• Does not cancel existing credit cards or loans
• Does not impact your credit score
• Does not prevent you from using your credit
• It only blocks new accounts from being opened.

How Do You Temporarily Lift It?

If you’re applying for a mortgage, car loan, or new credit card, you can:

• Temporarily lift the freeze for a specific time window
• Unfreeze it for a specific lender
• Re-freeze it once the application is complete
• It only takes a few minutes and can usually be done online.

Why We Recommend This to Our Clients

We’ve worked with too many families who:

• Didn’t know fraud happened until months later
• Lost time, money, and peace of mind fixing it
• Thought “this won’t happen to me” until it did

It’s one of the highest-impact, lowest-effort protective steps you can take. If you rarely open new credit, there’s almost no downside.

Lock It Down Before You Need To

Identity theft isn’t slowing down, but you can slow criminals down. Taking this action:

• Costs nothing
• Takes less than an hour total
• Can save you years of financial cleanup

If you want help understanding whether a credit freeze or broader financial protection plan makes sense for your situation, that’s exactly the kind of conversation we have with clients every day so reach out to a Verde advisor.

Your money should be working for you and not cleaning up someone else’s mess.