Why Is A Total Credit Freeze The Wrong Answer To Credit Card Fraud?

Posted on Posted in Financial

Consumers assess strategies for preventing identity theft. When unexpected charges arise, it is necessary to take action and prevent financial losses. The most common choice for preventing these charges is to freeze the consumer’s credit. The following is exactly why a total credit freeze is a wrong choice for preventing credit card fraud.

Contacting All the Credit Bureaus

When freezing a consumer’s credit, it is necessary to contact all three credit bureaus. Unfortunately, the process could take longer than average nowadays. Recently, Equifax was hacked, and the bureau is harder to reach than ever. The process for freezing the credit requires the consumer to speak directly to a representative. The consumer must provide evidence of their identity before anything is done. Additionally, the process is lengthy, and the consumer cannot unfreeze their credit any easier.

The Inability to Start New Lines of Credit

After consumers freeze their credit, they cannot start a new line of credit. Auto loans, mortgages, and new credit cards are completely off-limits to the consumers. Any access to new lines of credit requires the lengthy process of unfreezing the credit. While it is a strategic way to stop others from using their credit, the process cuts the consumers off from these new sources as well.

Accessibility to Features for Credit Cards

Credit card companies provide cardholders with major benefits. Among these benefits are features that are available through the credit card’s app. The feature allows the consumers to click a button on the website to freeze the credit card individually. No one can use the credit card unless they click the button to unfreeze the account. These features don’t require them to call their creditor or contact a credit bureau. It’s fast and free to the cardholders. It’s the best way to protect their account without a lengthy process.

Consumers review alternative ways to protect their assets and credit. A beneficial way of stopping identity thieves from using their credit to acquire loans or credit cards is to freeze the consumer’s credit. Unfortunately, the process presents more disadvantages than benefits. Choosing to use features available through their creditors could prove the best option.