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I'm curious: say you freeze your credit and then take an action that should negatively affect your credit, e.g. skip out on paying a doctor. What happens? That'
by sillysaurus3 9y ago
I'm curious: say you freeze your credit and then take an action that should negatively affect your credit, e.g. skip out on paying a doctor. What happens? That's nearly identical to what a fraudster might do, except there is no fraudster.
How does the system differentiate between someone showing up and doing something in your name vs you actually showing up and doing something negative?
- pwg 9y agoIt works because nearly every institution that would "extend credit" relies on the reports from these agencies to decide to do so. So when they try to pull a report (for you or a fraudster) they get back "sorry, frozen" and that causes them to actually stop and try to actually verify the true identity of the person requesting the loan. If that is you (the proper owner) then you can 'unfreeze' for the purpose of obtaining the loan. If that is a fraudster, they will likely not have your pin's to do the unfreeze, so the bank/business says "no" to the request for money. [edit: spelling]
- sillysaurus3 9y agoI suppose a doctor's office and the dentist are two of the rare exceptions. I can't think of any others. (They generally don't ask for payments till the end.)
- patio11 9y agoFreezing credit is not a write lock. It is a read pseudolock. Writes against the CRA succeed as normal.