Understanding Credit Freezes and Their Impact on Negative Items
Many individuals wonder if placing a security freeze on their credit with LexisNexis Innovis and Sagestream makes it easier to delete negative items from their credit report. While a security freeze is a powerful tool for protecting against identity theft, it does not directly impact the content of your credit report. This article will explore the specifics of credit freezes, negative items on your report, and the process of disputing them.
What is a Credit Freeze?
A credit freeze, or security freeze, is a measure taken to protect your personal information from identity thieves. When you place a freeze, it restricts access to your credit report, making it significantly harder for identity thieves to open new accounts in your name. This is a powerful security tool as it effectively stops unauthorized use of your credit information.
What Are Negative Items on Your Credit Report?
Negative items, such as late payments, defaults, or bankruptcies, are typically recorded on your credit report and can stay there for a specific period. For instance, most negative items remain on your report for 7 years from the date the events occurred. A credit freeze does not remove these negative items; instead, it prevents them from being accessed by new creditors.
Disputing Negative Information
If you believe there are inaccuracies or outdated negative information on your credit report, you can dispute these items. The process of disputing these inaccuracies is separate from placing a credit freeze and is essential for potentially having negative items removed or updated. The three major credit bureaus—Experian, TransUnion, and Equifax—are responsible for maintaining the most accurate and up-to-date information in your credit report.
LexisNexis Innovis and Sagestream
LexisNexis Innovis and Sagestream are companies that provide consumer reports used by some lenders to assess creditworthiness. These reports may include information that can affect credit decisions. However, managing negative items on your credit report primarily involves addressing the reports from the three major credit bureaus. Both a freeze and disputing negative items are important parts of maintaining a secure and accurate credit profile.
Understanding the Credit Reporting Agencies (CRAs)
It is important to understand that credit freezes are designed to prevent unauthorized access to your credit report but do not affect how the Credit Reporting Agencies (CRAs) compile and sell information about you. CRAs like Experian, TransUnion, and Equifax have a business model based on selling your personal information on lists to their corporate clients. Simply freezing your credit reports does not stop this routine selling of your data.
How to Read and Improve Your Credit Reports
Above all, understanding how to read the information in your credit reports is crucial for identifying and disputing inaccuracies. Learning how to successfully dispute inaccuracies and improve your credit history is essential for maintaining a clean and accurate credit report.
In conclusion, while a credit freeze is an effective tool for protecting against identity theft, it does not simplify the process of removing negative entries from your credit report. This process is primarily managed through the major credit bureaus, and disputing inaccuracies is a key step in maintaining an accurate and secure credit profile. Protecting your credit is a multi-faceted process, and being informed is the first step.