There is usually a fee associated with putting a security freeze on a credit report. As you may well be aware by now, under the Fair Credit reporting Act, certain agencies can collect information from your credit report as long as they have the justifiable purpose. In case you want to restrict this access and do not want anyone to access your credit report without your knowledge or permission, you can place a security freeze on your report. When you do this, you will be provided with an identification number and password. Whenever you wish to remove the security freeze or wish to lift it temporarily, for a specific person or purpose, you will need to use this code.
You should be aware that putting a security freeze may delay or interfere with timely approval of application that you make for loans, credit, mortgage, insurance, rental services, rental housing, employment, investment, license, cellular telephone, utilities, digital signature, Internet credit card transaction or other services, including an extension of credit at point of sale.
Whenever you are seeking credit you will need to request the lifting of the security freeze. Since this may take some time, it is advisable to foresee the requirement and make the request well in advance. You will be required to provide the identification number, sufficient proof of identity and a statement specifying either the person or the duration that you want the freeze lifted for.
You should also remember that a security freeze may not apply to your existing creditors and service providers that you do business with. Before placing a security freeze you should be clear as to what purpose you want the security freeze to serve and whether it can be accomplished by following this method.
There are different laws governing rules regarding placing a security freeze on your credit report in different states. The fee is around $10 for placing the freeze and none for lifting it for specific periods or people. Depending upon the state rules this fee can be waivered if you are a victim of identity proof and can submit a valid investigative or incident report, complaint with a law enforcement agency or the Department of Motor Vehicles (DMV).