Your credit report is the primary measure of your financial worth. It is also one of the main factors considered by lenders, creditors, financiers, and insurers whenever they evaluate the risks involved in making business with you. To control the release of your credit records to other parties, you can request for a credit freeze.

Prevent the release of credit reports

The people to contact for credit freezes are credit report agents, the financial representatives who compute your credit scores and evaluate your credit ratings. It is up to them to judge whether you are worthy of a good credit score or not. Because they hold all information about your credit records, credit report agents also have the power to hold or postpone the release of your credit reports.

While on hold, however, your credit report cannot be accessed or released by anybody – including you. To start receiving free copies of your credit report again, you need to reveal the password or PIN that was issued by the credit report agency earlier. The revelation of the PIN or password signifies that you want to unfreeze the release of your credit report either temporarily or permanently. In some credit report agencies, you may also be required to submit a formal document stating that you are finally ending the previously requested credit freeze.

Avoid the possibility of identity theft

Another great feature of credit freeze is that is saves you from the possibility of identity theft. When your credit report is on freeze, you are not allowed to open new accounts or manage new loans. If your credit report is on freeze, then all your financial transactions will also be on hold. You cannot withdraw cash from your account, get money from your lender, or even redeem claims from your insurance. So, if a fraudulent individual assumes your identity while your credit report is on freeze, then you can expect him or her to pay a visit to the nearest police station.