Lock Up Your Child’s Credit Report

What’s this “Freezing Your Child’s Credit Report?”

I’d always heard that there was a way to lock up your child’s credit report, or your own credit report for various reasons but I didn’t know exactly how, until now. Also known as “Freezing Your Child’s Credit Report”, or freezing your credit, there are several reasons you may consider taking this step.

Locking up your credit report, also known as placing a credit freeze, can provide several benefits and help protect you from identity theft and fraudulent activity. Here are some reasons why you might want to lock up your credit report:

1.  Identity Theft Prevention:

A credit freeze can act as a deterrent against identity theft. By placing a freeze on your credit report, you restrict access to your credit information, making it difficult for identity thieves to open new accounts or lines of credit in your name.

2.  Preventing Fraud:

When your credit report is locked, creditors and lenders cannot access your credit information to approve new credit applications. This prevents unauthorized individuals from using your identity to open credit accounts, take out loans, or obtain credit cards without your knowledge. In my bankruptcy practice here in Missouri, I see several cases a year where my clients were victims of fraud that could have been prevented by freezing their credit.

3.  Enhanced Security for Minors:

Locking up your child’s credit report can be especially important. Children are vulnerable to identity theft because their credit histories are usually clean. By freezing their credit reports, you can prevent anyone from fraudulently using their personal information to establish credit or take out loans.

4.  Peace of Mind by Freezing Your Child’s Credit Report:

Placing a credit freeze provides peace of mind, knowing that your credit information is protected. It reduces the risk of financial damage and the hassle of dealing with identity theft and its consequences.

5.  Control over Credit Access:

A credit freeze gives you control over who can access your credit information. If you need to apply for new credit or open a new account, you can temporarily lift the freeze using a unique PIN or password provided by the credit bureaus. Once the purpose is served, you can reinstate the freeze to maintain security. Why would someone want to control access to their credit one may ask?  See numbers 1-4.

It’s important to note however that a credit freeze does not affect your existing credit accounts or impact your credit score. It only restricts access to your credit report, making it a useful tool to prevent unauthorized access to your credit information.

Keep in mind that while a credit freeze provides significant protection, it may also inconvenience you when you need to apply for new credit. Actually, it can be a huge pain in the backside so take precautions. You’ll need to plan ahead and temporarily lift the freeze when necessary, which may involve additional steps and time.

To lock up your child’s credit report, you can take the following steps:

1. Contact the Credit Bureaus: Get in touch with the three major credit bureaus—Equifax, Experian, and TransUnion. Inform them about your intention to freeze your child’s credit report. Each credit bureau has its own process and requirements, so you may need to provide some documentation and personal information to prove your identity and the child’s identity.
2. Complete the Necessary Documentation: The credit bureaus will likely require certain documents to establish your identity and the identity of your child. This may include copies of your identification documents, your child’s birth certificate, Social Security card, and proof of your relationship with the child.
3. Follow the Credit Bureau’s Procedures: Each credit bureau has its own process for freezing a credit report for a minor. They may have online forms to complete or require you to submit the necessary documents by mail. Follow their instructions carefully to ensure the credit report is properly locked.
4. Retain the Security PINs: Once the credit freeze is in place, the credit bureau will provide you with a unique PIN (Personal Identification Number) or password. Make sure to keep this information in a safe and secure place. You will need it to lift the credit freeze when necessary.
5. Monitor and Update as Needed: Regularly check your child’s credit report for any signs of suspicious activity, even with the credit freeze in place. If you need to temporarily lift the freeze for a legitimate reason, such as applying for a loan or credit card on behalf of your child, contact the credit bureaus and provide the required information to temporarily lift the freeze. Remember to reinstate the credit freeze afterward.

It’s worth noting that the process of freezing a child’s credit report may vary by country or state. Ensure you are familiar with the specific guidelines and procedures in your jurisdiction.

By taking these steps to freezing your child’s credit report, you can help protect their personal information and minimize the risk of identity theft or unauthorized access to credit.