Credit Freeze or Credit Monitoring?

Posted by Clyde Hutchins | Jan 06, 2017 | 0 Comments

Credit Freeze or Credit Monitoring?

You often hear about data breaches in the news, or unfortunately, through a data breach notice from a company. Most of the time that a data breach occurs, the company offers a credit monitoring service to help protect its customers from the consequences of the data breach. This is an "after the fact" type of approach to protecting consumers. However, there is another way to protect your personal information and that is through a credit freeze.

The main difference between credit monitoring and a credit freeze is that credit monitoring notifies the consumer when someone tries to use the consumer's credit information, while a credit freeze blocks use of a consumer's credit information for the purpose of obtaining new credit. Most businesses will not open credit accounts without first checking a consumer's credit report. If a consumer's credit files are frozen, even someone with a consumer's name and social security number probably would not be able to obtain credit using the consumer's name. However, with credit monitoring, someone could use the consumer's information to obtain credit.

A credit freeze can be somewhat of a nuisance. Anytime a consumer wants to obtain new credit, they have to remove the freeze, or temporarily "thaw" the freeze to allow the business to check their credit.

The cost of freezing credit is $10 per reporting agency for Wyoming residents. It is free for the first credit freeze for Colorado residents. There is another charge to remove or temporarily "thaw" the credit freeze.

About the Author

Clyde Hutchins

Clyde Hutchins is the founder of Harmony Law. Mr. Hutchins started his legal career in Cheyenne, Wyoming as a law clerk for the district court judges. Mr. Hutchins then entered private practice with a Wyoming based litigation and business law firm. Later, Mr. Hutchins went to Alaska, where he was the chief litigator for a firm that engaged in bond law, corporate law, securities law, and municipal law. The State of Wyoming hired Mr. Hutchins from Alaska to represent the State of Wyoming in the national tobacco arbitration and act as its tobacco settlement attorney. While in that position, as a hobby, he developed an enforcement unit for consumer protection for Wyoming residents. Mr. Hutchins moved to Colorado in 2016 and founded Harmony Law, LLC. Harmony Law is primarily engaged in civil litigation. It is also a general practice firm in the areas of business law, estate planning, consumer law and family law. Harmony Law is active in all state and federal courts throughout Wyoming and Colorado.


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