Credit Card Freeze

A literal credit card freeze was seen in the movie Confessions of a Shopaholic where the lead character, Rebecca Bloomwood, froze her credit card in a cube of ice to stop herself from overspending.
Some people actually find this idea brilliant. To them, freezing credit cards is a good way to keep them out of sight and, eventually, out of mind. In the event that they do remember the card, thawing it would take so much effort that they get the time to think about using the card again. A literal credit card freeze has actually helped a lot of people stay out of debt. :)

Credit card freeze (not the literal one) is a good method to save money. It’s not actually the credit card that is frozen but the credit card account and report. This happens when your credit card account is made inactive and your credit report is rendered inaccessible to any unauthorized party. This lockdown forbids anyone, even you, to open any form of credit with your name. This will make your credit report unavailable to potential card issuers and lenders and even your employers. This procedure is done primarily to avoid overspending. It prevents impulsive buyers and shopaholics from maxing out their credit cards. The second reason for doing a credit card freeze is to stop suspected or actual unauthorized use of the card. This is mainly done for lost or stolen cards. Though this option is not yet available nationwide, the number of states (including California, Colorado, Louisiana, Nevada, Texas, Vermont, and Washington) offering their residents credit card freeze is growing, provided, of course, that the cardholder presents sufficient evidence of experiencing identity theft.

If a credit card freeze is imposed on your account, credit card companies and banks will not be able to approve loan and credit card applications in your name since they can’t access your account and credit report. Hence, it offers you security and protection not only from yourself but also from credit card fraud.

How do you freeze your credit card? You just need to contact your credit card’s customer service, answer security questions, and supply your credit card number. If you’re freezing a lost or stolen card, you’ll also need to provide detailed information on the last time you used it.

How do you undo a credit card freeze? Some credit card companies impose a certain period while others give you a special PIN to unfreeze your credit card.

Next time your card is lost or stolen, you suspect identity theft, or you simply need help with debt management, credit card freeze is a good idea.


Source: Credit Cards For People With Bad Credit Rating

 Print this page
  |     Bookmark this page