You can conserve freezing your credit report if you have been a victim of identity theft or your credit card has been stolen. In any instance where you suspect that your financial information has been compromised so that a person can use your identity to make fraudulent transactions or open new fraudulent account you can use credit report freeze to prevent such activities from acting. Having an identity stolen is a very inconvenient business. It can take months and years to try and repair your identity. It can be in the frustrating as you have possibly done nothing wrong and yet have to pay for the consequences for a long period of time.
What a security freeze does is that it does not allow access to your credit report by creditors and lenders still the time that you lift the security freeze. Since most lenders and creditors use a credit report in order to verify the creditworthiness and risk of a consumer before opening a credit account, an identity thief will not be able to use your credit report to open new accounts since your report is frozen and not accessible to the creditor.
Credit freeze on a credit report are not foolproof method in preventing fraudulent transactions to identity theft. If a creditor or lender does not require a credit check or can bypass the credit check an identity thief can still open accounts in your name.
There are kinds of identity theft that do not involve opening new accounts. If the identity thief can use your existing credit card information and checking account information, putting a security freeze on your credit report will not prevent it. Security freeze works with the three main national credit bureaus Experian, Equifax and TransUnion. If the creditor happens to use a lesser known credit bureau then security freeze on your credit report with Experian, Equifax and TransUnion may be of no consequence.