What is a credit freeze? Should you opt for it?

To secure your finances against ever-evolving frauds, a credit freeze, also known as a security freeze, can come in handy.

In today’s digital era, when access to information is just a click away, you can place a credit freeze on your credit profile so that identity thieves cannot access your credit report, thereby preventing any new credit accounts from being opened in your name.

The facility is absolutely free. You can initiate the freeze at no cost and can also cancel or temporarily lift it without any additional charges.

In simple words, it is a ‘lock’ on your credit profile.

You have lost important identity documents such as your PAN or Aadhaar.

You have been a victim of identity theft or your personal data has been compromised.

You do not plan to apply for fresh credit and want to avoid fraudulent borrowing in your name.

Security is your primary concern.

For a complete freeze, you need to place it with each of the credit bureaus in India, including TransUnion CIBIL, Experian, Equifax and CRIF High Mark.

Here are the steps to initiate a credit freeze with TransUnion:

1. Create a free Service Center account to get started, or log in if you already have one.

2. Freeze your credit report through the Service Center.

3. Contact the other credit bureaus to place a freeze with them as well.

You can remove the freeze entirely or lift it for a specific period whenever you want.

Sign in to the TransUnion Service Center at any time to check the status and manage your freeze.

It is an effective way to protect yourself from identity theft.

It does not affect your credit score, as it is simply an added layer of security.

It prevents or restricts access to your confidential financial information.

It is free of charge and can be added, removed, or temporarily lifted depending on your credit needs.

Nonetheless, it requires a conscious effort on your part to set it up and manage it.