From the “Even a Broken Clock is Right Twice a Day” Department-
Freezing one’s credit report means that no one can pull your report in order to open any sort of new account. It is, hands down, the best way to prevent credit-related identity theft. And can be a useful self-imposed speed-bump to those who struggle with opening credit they don’t really need.
Unfortunately, only four states currently require credit bureaus to freeze or unfreeze reports for no fee.
In most other states consumers must pay a $3-$10 fee to freeze their reports in order to prevent identity thieves from opening new credit in their names. Should they then want to apply for credit themselves they have to pay another fee to unfreeze the report, and then a third fee to re-freeze it after they’re done applying.
And these freeze/unfreeze fees are for each of the three major credit bureaus, meaning it could cost as much as $60 just to allow a potential creditor to review your application.
(New Hampshire’s fee is $10 to freeze or unfreeze, BTW)
Once this new law goes into effect (late September/early October), I strongly encourage everyone to freeze their credit reports at all three bureaus: Equifax, Experian and Transunion. It is a very simple step that can save hundreds of hours of your time in the future.
For more detailed information on credit report freezes I highly recommend Doctor of Credit’s Credit Freeze / Security Freeze post.