Freezing one’s credit, in the context of EVERFI’s educational modules, refers to restricting access to an individual’s credit report. This security measure prevents unauthorized parties from opening new accounts in that individual’s name. For instance, if an individual freezes their credit files, a potential identity thief will be unable to apply for a new credit card or loan using the stolen personal information because lenders cannot access the credit history necessary for approval.
The primary benefit of implementing a credit freeze is significantly reducing the risk of identity theft and fraudulent accounts. It provides a proactive defense against financial harm by limiting access to sensitive credit information. Historically, credit freezes were less common and sometimes involved fees, but current legislation has made them free and more accessible to consumers nationwide, thus empowering them to take greater control over their financial security.
