The Importance of Freezing a Child's Credit
/In the past, placing a credit freeze for a minor or a young adult that did not yet have a credit file, was difficult or impossible to do. Today, credit bureaus allow a credit freeze in both of these situations, in some states. To protect your child’s identity, visit the three major credit reporting companies at the links below. Be aware that not every state allows you to easily implement a credit freeze for a minor. Thirty-three states allow parents, legal guardians or other representatives of minors to place a security freeze on a minor’s credit report. Below is a list of those states:
Alaska
Arizona
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Michigan
Minnesota
Montana
Nebraska
New York
North Carolina
Ohio
Oregon
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Wisconsin
Child identity theft is a startling problem because it’s often unnoticed for years. Why do thieves go after children’s identity? “Children’s credit reports are clean. That’s attractive to people who want to begin their financial lives anew for any number of reasons.” says Ron Lieber, from The New York Times. If you are a resident in one of these participating states, get information on freezing your child’s credit by visiting the 3 major credit bureaus websites.
As with a credit freeze for an adult, a credit freeze for children means that any new creditor trying to open an account in the child’s name won’t have access. It’s important to know freezes won’t stop every kind of theft. Thieves sometimes use children’s Social Security numbers to file fake tax returns and get illegitimate refunds, gain access to health care, and work legally even if they are not citizens. In each of those instances, there may never be a credit check that reveals the freeze, says Lieber.
Content prepared by Christina Kane, Worley Erhart-Graves Financial Advisors
