Ask Terry Questions Credit freeze, Credit Alerts and Insurance Rates

Credit freeze, Credit Alerts and Insurance Rates

By Terry Savage on October 09, 2023 | Credit/Debt

Hi Terry, I love listening to you on WGN and your podcast Friends Talk Money. I recently found an unauthorized transaction against my account through debit card, even though the card was with me. I myself only use it at the atm at the bank, so there may have been a skimmer or tiny camera. Anyway, I put freezes and alerts on the three credit bureaus and disputed the transaction with the merchant and my bank (still awaiting results), and filed a police report, closed the debit card. If you have additional suggestions, I’m all ears.

My main question is, will those freezes and alerts still allow my insurance companies (homeowners and auto) to monitor my credit score? I heard that if they can’t read the score, they assume the worse and may raise my insurance rates. Thanks, I hope that’s just a myth!!

Terry Says

That’s a great question, and it really made me think twice — until I realized that I froze my credit and still get my score regularly from CreditKarma. So no, your existing creditors and financial companies can still get your updated score.

In fact, read this from Equifax (one of the three credit bureaus) on that very subject:
https://www.equifax.com/personal/help/access-view-frozen-locked-credit-report/

A credit freeze WILL block new insurance applications –unless you lift the freeze temporarily.

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