Personal finance experts sometimes recommend that people who tend to overuse credit cards participate in a self-imposed credit freeze. That is, you put your credit card in a bowl of water and freeze it. Impulse purchases are no longer available – you have to think about your purchase long enough to drive home, take the card out of the freezer and wait for the ice to melt.
For consumers who need to get their credit scores up but tend to open a credit card at every department store, a self-imposed Security Freeze may be in order. According to the
Equifax Personal Finance Blog, a Security Freeze will keep third parties from accessing your credit file unless you have taken steps to lift the freeze temporarily.
The article, “
Security Freezes, Credit, Identity Theft and Fraud,” says Security Freezes aren’t typically recommended for younger generation consumers who are still “credit active” because of the hassle of lifting the freeze fairly often. But from a layman’s perspective, this extra bit of work to access a new credit line may be just the thing some people need. You won’t be able to apply for the store credit card at the cash register to receive 20 percent off your purchases, but you could save your credit score instead.
What does this have to do with buying a new Atlanta home? If you’re in the process of researching the steps for a home purchase, saving for your downpayment and making sure you have good credit, a Security Freeze could force you to resist the next credit deal that comes along. Lots of new credit activity can really knock your score down, and you’ll need to stop applying for consumer credit until after the mortgage is finalized if you want your score to come back up.
For Equifax, the easiest and fastest way to place a security freeze on your credit file is to follow the steps online. You’ll need to contact each of the other credit reporting agencies (TransUnion and Experian), too, for your credit freeze to be completely effective. There may be a cost involved, so be sure to make a thorough check before you order your Security Freeze.
For more information or to post questions, visit the