Social Security Freeze
What Does Social Security Freeze Mean?
A social security freeze refers to the act of stopping the release of a credit report to any person or company upon the request of the owner of a Social Security number. This is meant to discourage fraudulent transactions and identity theft.
Insuranceopedia Explains Social Security Freeze
When a person’s Social Security identity is used to make financial acts without their knowledge, they can institute a security freeze. Once done (usually for a fee), a bank or creditor can no longer have access to that person’s credit report or credit score. It will also prevent someone from opening any accounts in the person’s name.
The freeze, however, can be lifted with the use of a PIN number if the person who initiated it wishes to apply for a loan or allow a particular creditor to look at their file.
A credit bureau will usually enact a freeze within three days of receiving the request.