Start building your family’s financial armor by considering this chilly MoneyArmorTM Move. A credit freeze for kids is a quick win.
As heroes on the Front-Lines you spend your days protecting those whose path randomly crosses yours. You are giving all you have day in and day out…treating patients, teaching our children, rescuing those in need and bringing criminals to justice…to name but some of your duties. Many days you spend most of the day putting others ahead of yourself. Now we are asking for your permission to let us guide you just a bit. Just take a few minutes to deploy a tactic that may help protect your children’s identity and their financial future. Stay with us for just a few minutes on this short journey. A credit freeze can be a big win for your Federal family.
What do you think of when someone mentions protecting our kids? My mind usually gravitates toward covering the electrical outlets for toddlers and setting curfews for teens. One area we rarely think of is guarding their personal information. Identity protection for kids is often overlooked by the average household. But you aren’t average. And you’re about to get a quick win for your kids!
So let’s start with a quick note on credit reports and scores. You know that “thing” that we all view as a financial scorecard. That all important “credit score” into which we place so much value. Here’s the thing. A credit report, and its accompanying “score”, are not good vital signs for our financial health. If we spend more time together, we’ll eventually show you a better way to measure your financial health. We use simple, measurable and rational ratios. But that’s for later. For now though, we’d like you to consider how a credit freeze for kids can help. Know that freezing your kids’ credit plays a part in building your family’s financial armor.
Wait, our children? What are you talking about Charlie? My 3-year-old son is not applying for his American Express Platinum card so he can buy a new Thomas the Train engine. And for sure my 7 year-old daughter is not applying for a fixed rate mortgage on a condo next to the playground anytime soon.
All true. However, your kids do have social security numbers. That can make them vulnerable and susceptible to fraud. So let’s talk about why a credit freeze for your kiddos is a small, but very impactful move. And let’s start with “our WHY”, as in why a credit “freeze” is important. In short, a freeze will restrict access to your credit report. Everyone from lenders checking your credit and bad actors trying to steal your credit gets stonewalled. While a credit “lock” is similar, it often comes with a monthly fee. No need for this. Credit freezes are free. What happens if your kid doesn’t have a credit file? No worries. This is perfectly normal. The credit bureaus will simply make a file and then freeze it.
At a high level, you should understand that there are three (3) major credit bureaus that track your credit scores. They are:
Thus, one of the first things you should consider is to “freeze” your accounts and your spouse’s accounts. Do this with each bureau listed above. And then take it one step further. Let’s place a credit freeze for our kids. It’ll be a bit more work to freeze a child’s account. But you aren’t the average bear. You are resilient. As a leader in your family you are used to getting punched in the nose by life. But you always keep moving forward. So gear up and let’s get this done for your kids!
Here’s what to do:
- Gather some of the likely requested documents. While each bureau is slightly different they will all request basic documents such as:
- Proof of identity for the Guardian/Parent – example: copies of a driver’s license, Social Security card or birth certificate.
- Proof of identity for the minor Child – example: copies of the minor’s Social Security card or birth certificate.
- Proof of authority over the minor Child – example: copies of the minor’s birth certificate or valid power of attorney.
- Proof of address – example: copies of a utility bill, bank statement or pay stub. Heads up here – be sure to make a copy that redacts your account number. Your name and address on the statement should be sufficient to satisfy the credit bureau. No need to have any extraneous personal information floating around.
- Log into each of the three credit bureaus above and scroll to the area that discusses placing a freeze on a minor’s credit report. For example:
- Equifax will direct you to complete a “Minor Freeze Request Form”.
- Experian will allow you to complete an online form.
- TransUnion requires that you mail them the listed documents – Example Directions from TransUnion.
- Freeze the credit for your minor child/children so that no one steals any portion of their identity and uses it for malicious purposes.
- Feel free to use this sample letter to make your life a bit easier – Letter to TransUnion for Credit Freeze of Minor.
If for any reason you need to “unfreeze” or “thaw” (temporarily lift) their credit, each bureau will have you walk back through the process (pdf form, online form, written letter). Typically, a temporary thaw will only happen if your kids reach the age of majority and need to apply for credit in some form. Even then, it’s a best practice to have them apply for whatever credit they need and then help them ensure that the freeze is back in place. The temporary thaw simply allows the potential lender to appropriately check the applicant’s credit as part of the credit application process.
Usually, one can unfreeze/thaw a credit report for 4-5 days (a business week). That usually provides enough time to apply for and be approved for most credit applications. Again, the idea here is to unfreeze/thaw the credit report for a short time. Just enough time for the lender to do the credit check. But not so long as to leave your credit report open to bad actors any longer than is necessary. Child identity theft can go unnoticed for years. Be proactive. Get in the fight and throw on a layer of financial armor by protecting your kids.
You’ve got this!
Be the Hero for You and Yours!
