Credit freezing occurs when you call the credit bureaus and instruct them to freeze your credit, thus allowing no one access to your information in order to gain new credit. This is a great tool if someone has recently had his or her information stolen. It will provide protection from an identity thief. However, with a credit freeze in place, that person will not be able to get a home loan. He or she would first have to call all three credit bureaus and ask them to remove the freeze. This could take some time depending on what information the bureaus require be provided and may cost a fee, as well.
Next time, I'll talk about Fraud Alerts, so stay tuned! Or, you could always email me to find out right away - firstname.lastname@example.org.