Security freeze & Internet credit card transactions

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goshenBogle
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Security freeze & Internet credit card transactions

Post by goshenBogle » Sun Dec 06, 2015 10:04 am

On the Experian website there is the following:
"using a security freeze may delay, interfere with, or prohibit the timely approval of ... Internet credit card transaction, or other services, including an extension of credit at point of sale"

What does the above statement mean? What impact does a security freeze have on Internet credit card transactions?
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VictoriaF
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Re: Security freeze & Internet credit card transactions

Post by VictoriaF » Sun Dec 06, 2015 10:15 am

If you are at Macy's, and they offer 30% off your purchase if you apply for their store card on the spot, you will not be able to do it with a credit freeze.

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goshenBogle
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Re: Security freeze & Internet credit card transactions

Post by goshenBogle » Sun Dec 06, 2015 11:04 am

So a credit freeze does not impact credit card purchases made online, right?
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2b2
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Re: Security freeze & Internet credit card transactions

Post by 2b2 » Sun Dec 06, 2015 11:07 am

I froze my credit access some months ago and have not noticed any changes to purchases... either online or in stores.

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neuro84
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Re: Security freeze & Internet credit card transactions

Post by neuro84 » Sun Dec 06, 2015 12:13 pm

goshenBogle wrote:So a credit freeze does not impact credit card purchases made online, right?
It hasn't affected any of my credit card purchases, online or offline.

The only time it comes into play is during any transaction where the merchant would pull your credit. Eg, I was buying a new Google Fi phone and I had to pay for it upfront rather than participate in their 0% loan over 1 year program. Not a huge deal to me, other than missing the opportunity for a 0% loan.

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Re: Security freeze & Internet credit card transactions

Post by Mudpuppy » Sun Dec 06, 2015 4:41 pm

goshenBogle wrote:So a credit freeze does not impact credit card purchases made online, right?
That is correct. It does not affect your purchases on your existing credit cards, whether those are in-person or online.

It only affects opening new credit cards or other new accounts where credit history is checked, such as the examples given by VictoriaF and neuro84.

Beck49
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Re: Security freeze & Internet credit card transactions

Post by Beck49 » Sun Dec 06, 2015 5:51 pm

I've frozen my credit at all three sites, and don't regret it. However, I just ran into an unexpected problem. My Allstate agent was trying to get my policy reviewed for a lower premium. Apparently part of the review involves a credit check. Despite doing a global lift for a week, they could never get access to my credit at Transunion, and could never give me an explanation why not.

MnD
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Re: Security freeze & Internet credit card transactions

Post by MnD » Sun Dec 06, 2015 11:25 pm

goshenBogle wrote:So a credit freeze does not impact credit card purchases made online, right?
Yes it could.
I have purchased high end electronics from on-line only retailers and I recall at least two of them that verified my identity using questions that would only be available on your credit report and/or from credit card companies.

http://tabletpcthoughts.blogspot.com/20 ... irect.html

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grabiner
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Re: Security freeze & Internet credit card transactions

Post by grabiner » Mon Dec 07, 2015 1:26 am

MnD wrote:
goshenBogle wrote:So a credit freeze does not impact credit card purchases made online, right?
Yes it could.
I have purchased high end electronics from on-line only retailers and I recall at least two of them that verified my identity using questions that would only be available on your credit report and/or from credit card companies.

http://tabletpcthoughts.blogspot.com/20 ... irect.html
This is unlikely to have come from your credit report. It could have come from some other data broker, or simply checking the information from a database; the questions in that article, such as "Which of these addresses is in your town?" are not typical credit report questions. In order to use your credit report for checking information, the company would have to have your Social Security number so that it could check your report.

(Not that the credit report questions are necessarily any better; I was asked, "In which county is the address you submitted?" which would be easy to look up on a mapping service, and "Which of these banks, if any, holds your mortgage?" when my address could be identified as a rental complex.)
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Re: Security freeze & Internet credit card transactions

Post by Mudpuppy » Mon Dec 07, 2015 2:55 am

grabiner wrote:
MnD wrote:
goshenBogle wrote:So a credit freeze does not impact credit card purchases made online, right?
Yes it could.
I have purchased high end electronics from on-line only retailers and I recall at least two of them that verified my identity using questions that would only be available on your credit report and/or from credit card companies.

http://tabletpcthoughts.blogspot.com/20 ... irect.html
This is unlikely to have come from your credit report. It could have come from some other data broker, or simply checking the information from a database; the questions in that article, such as "Which of these addresses is in your town?" are not typical credit report questions. In order to use your credit report for checking information, the company would have to have your Social Security number so that it could check your report.

(Not that the credit report questions are necessarily any better; I was asked, "In which county is the address you submitted?" which would be easy to look up on a mapping service, and "Which of these banks, if any, holds your mortgage?" when my address could be identified as a rental complex.)
And they would also have to disclose that they were running a credit check and get your consent. Granted, a notification and statement such as "you consent if you agree to these terms" could be buried in the fine print of the terms and conditions, but it's also not something they'd want to take lightly.

But I would agree that all of the questions in the Blogspot blog post linked above not only could come from sources other than a credit report, but actually would have to come from sources other than a credit report. It looks like the standard information you would get from a background check company that mines information off public records. The property addresses come from the local municipality's property records and/or voter registration information. The siblings would come from data mining birth certificates and marriage certificates. The credit report would only contain current and prior residences. It would not contain anything about siblings or other relatives.

If you want to see the extent people can find out information about you simply from your name and current address (or even just an approximate address or email address), try out Spokeo, Intelius, or a similar service.

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Re: Security freeze & Internet credit card transactions

Post by takeshi » Mon Dec 07, 2015 11:40 am

goshenBogle wrote:What does the above statement mean? What impact does a security freeze have on Internet credit card transactions?
Not sure exactly what they mean by "Internet credit card transaction or other services" but a security freeze has no impact on a typical internet credit card transaction. Your credit report isn't accessed for every internet credit card purchase.

"Extension of credit at point of sale" makes sense since they are extending credit and need to pull your report.

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