| The growing problem of identity theft has spawned a | | | | available to those companies with whom you already |
| new industry aimed at keeping your credit information | | | | have open accounts. Likewise the data remains |
| safe by "locking" your credit file. These companies | | | | available to employees of the credit bureaus, |
| typically charge a monthly fee for their services. One | | | | governmental officials, insurance companies and |
| such company advertises that they will pay you 1 | | | | potential employers who have your permission. So, are |
| million dollars if your identity is stolen while you are an | | | | there benefits in paying the fees required to place a |
| active user of their services. When you get behind all | | | | security freeze on your credit report? |
| the advertising hype, the vital question is whether or | | | | Locking your credit report prevents new accounts |
| not the monthly expenditure is worth it. | | | | from being opened in your name without your |
| Making a request of the credit bureaus to lock your | | | | knowledge and consent. In order to establish new |
| report does not mean your files will remain locked | | | | credit, you must temporarily unlock your credit file |
| indefinitely. In theory a credit report lock or security | | | | through a specific procedure. In that way, the lock |
| freeze lasts indefinitely. In actuality, the lengths of | | | | provides protection. With constant growth of credit |
| security freezes vary from one state to another. In | | | | identity theft, lock-up may be something you need. If |
| addition, credit bureaus require the consumer to | | | | you are likely to establish a number of new credit |
| "renew" the locks after a given period of time. Since | | | | accounts in rapid succession, however, the cost and |
| there is no limit to number of renewals, one's reports | | | | inconvenience of a security freeze may work to your |
| can be under a security arrangement for life... but only | | | | disadvantage. |
| if the requests are renewed. | | | | One cautionary note is in order. Putting a credit report |
| One myth surrounding this arrangement is that locking | | | | lock-up in place is often oversold by companies |
| your credit report means the content is "frozen" at the | | | | profiting from implementing this service on your behalf. |
| moment in time when the security lock is put in place. | | | | While locking your credit does have value, it answers a |
| This is totally untrue. The lock means access to your | | | | very small portion of the identity theft dilemma. There |
| information by new sources is severely restricted, but | | | | are other aspects of identity theft in addition to direct |
| new information still continues to be added. So if you | | | | credit-related crime. One of the other dimensions of |
| increase your use of current accounts or make | | | | the problem is theft of benefits, an area called Medical |
| payments late, this information will still affect your credit | | | | Identity Theft. The impact of this kind of theft can be |
| scores. | | | | life-threatening as well as financially devastating. |
| Even during lock-up, your credit information is still | | | | |