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polywha t1_izfqx1i wrote

What is the benefit of freezing your credit? Is there any downside?

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losangelestimes OP t1_izftkgj wrote

The benefit is that no one can open a new line of credit using your identity. The downside is that if you want to do something like apply for a mortgage or a car loan, or get a store credit card somewhere, you have to un-freeze it. But you can download the apps for the credit bureaus and do that in seconds from your phone.

The credit bureaus don't want you to freeze your credit because they make money by making your information available to creditors. You are less valuable to them if your credit is frozen. To me, that is a good thing.

One interesting thing I learned while reporting this: Equifax, Experian and TransUnion are the major players, but there are more than 100 related bureaus that monitor your financial activity, including ones for checking accounts, payday loans, phone lines, utilities, etc. There is no way to completely "freeze" your financial identity with all of them at once. Frustrating!

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Alwayssunnyinarizona t1_izfv2sv wrote

I didn't know they each had apps! It'll look into that next time I'm expecting to unfreeze my credit.

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duckscrubber t1_izk4421 wrote

The benefit is that you can freeze and unfreeze your credit. The downsides are that the apps now take up space on your device, track you, and profit from your data.

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losangelestimes OP t1_izkaac1 wrote

You do not need to download the apps to freeze or unfreeze your credit; it just makes it convenient if you think you'd need to do that on the go.

If you are concerned about entities tracking you and profiting from your data, I have very bad news about what the credit bureaus do.

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Chicken_Water t1_izj1fab wrote

Don't they each charge a fee for freezing and unfreezing an account?

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losangelestimes OP t1_izka5qz wrote

The credit bureaus used to charge for this, but they don't any more. It has to be free. They will try to upsell you on additional products that cost money, which you should say no to.

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