Welcome to 401(k)ompass, a series of two-minute videos to help you manage your 401(k) more effectively by addressing current issues and challenges.
In this episode, Retirement Education Consultant Yasemin “Yaz” Hughes covers a topic that doesn’t show up on a plan statement but matters just as much: protecting your credit. Yaz explains that a credit freeze puts a lock on your credit file, preventing anyone — including you — from opening new accounts in your name until you choose to lift it. She compares it to locking the doors to your home when you leave: a basic step that keeps intruders out.
Yaz breaks the process into three steps.
- First, have your personal identification information ready, including your Social Security number.
- Then, contact Experian, Equifax, and TransUnion by phone or online to request a freeze with each bureau.
- Finally, set up a PIN or password with each one so you can unfreeze your credit when you need to apply for a mortgage, loan or credit card.
Saving for retirement is a long game, and protecting what you’re building along the way is part of the process. This quick overview covers what a credit freeze is, how to set one up, and why it’s one of the easiest ways to protect yourself against identity theft.