A recent data breach involving millions of Americans’ personal information has sparked widespread concern, leading many to consider freezing their credit. But is this really the best course of action? Some experts and everyday people say it is. Let’s break down why freezing your credit might be worth considering and what it entails.
What Happened?
A company called National Public Data, based in Florida, is believed to be at the center of this massive data breach. This company offers personal information to employers for background checks and other purposes. According to reports, as many as 2.7 billion Americans might have been affected by this breach. With such a vast number of people potentially impacted, the advice to freeze your credit has gained traction.
Why Freeze Your Credit?
One TikTok user, Cass (@crotchass), went viral with her straightforward advice: “Stop scrolling and go freeze your credit if you haven’t yet. I just did it—it literally took me 10 minutes! You know what’s gonna take a lot more work? If your identity gets stolen and then your credit is screwed up forever.”
Cass’s video, which has garnered over 1.8 million views, outlines the simplicity and potential benefits of freezing your credit. But what does freezing your credit actually mean, and why are so many people talking about it?
What Does It Mean to Freeze Your Credit?
Freezing your credit essentially locks your credit report, preventing new creditors from accessing it. This means that if someone tries to open a new account in your name, they won’t be able to do so because the lender won’t be able to see your credit report. According to USA.gov, this can be an effective way to protect yourself from identity theft, especially in the wake of a large data breach.
However, it’s important to note that freezing your credit isn’t without its downsides. For instance, if you need to apply for a loan, mortgage, or credit card, you’ll need to unfreeze your credit, which can be an extra step in an already stressful process.
Mixed Reactions to the Advice
While Cass’s advice has resonated with many, not everyone agrees that freezing your credit is necessary. Some commenters on her video have pointed out potential drawbacks and other considerations.
One user suggested, “Check if your SSN has been leaked first. No reason to freeze your credit unless you’ve been compromised.” Another cautioned, “Y’know what happens if you DO freeze your credit? It means you accept liability for everything currently listed.”
There are also those who feel that freezing credit isn’t a concern for them due to their financial situation. As one commenter humorously noted, “Girl, I’m poor as heck, a credit score in the negatives, student loans in the hundreds. Good luck to them.”
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So, Should You Freeze Your Credit?
Deciding whether to freeze your credit is a personal choice that depends on your situation. If your information has been compromised, freezing your credit could be a prudent step. It’s a relatively quick process that can provide peace of mind by adding an extra layer of protection against identity theft.
However, it’s essential to do your own research. Start by checking if your information has indeed been leaked. If you find that you’ve been compromised, then freezing your credit might be a good move. On the other hand, if your information is secure, you might decide that freezing your credit isn’t necessary at this time.
Ultimately, the decision should be based on what makes the most sense for you and your financial situation. In any case, staying informed and vigilant about your personal information is always a good idea.