Have you ever received a letter from a debt collector trying to collect on a loan your child says they owes? Or maybe your child has received an approved credit offer. These kinds of things may be indications that someone else has gained credibility in your child’s name.
Even the practitioners, even the friendly people, were able to take loans using their children’s personal information. Foster children are particularly susceptible to the misuse of personal information. In 2024, the Federal Trade Commission cited 21,420 identity theft cases reported in the United States by people under the age of 20.
Children cannot legally enter into contracts or obtain loans, but increasingly common identity theft can mean that their credits will be hurt before they need them. This means that when your child reaches adulthood and wants to take away the loan, they can realize that they pay a low-scoring price that doesn’t hurt. For these reasons, you may consider freezing your child’s trust.
Why should you freeze your child’s credits
Freezing your child’s trust prevents criminals and other untrusted individuals from opening a credit line under your child’s name. Scammers can obtain loans in their child’s name using their child’s personal information, such as their child’s name, address, social security number, and date of birth. We may also use that information to access government benefits, rent a location, or open a credit card account.
Freezing your child’s credits will help you to keep scammers down. If you freeze someone’s credit, no one will have access to their credit report. If someone applies for a credit in your child’s name, the lender will pull the credit report and try to find out that it has been frozen. From there, the lender will notify the applicant that the request has not been approved, effectively preventing the person from taking credit in your child’s name.
When your child turns 16, they can lift a credit freeze if they want. You can also unzip your credit before you turn 16 if you are considering adding it to one of your credit cards as a certified user, or if you are considering helping to create your credit early.
What parents can do to protect their children’s information
Knowing that your child’s personal information may be damaged, you should remain vigilant and take steps to prevent this from happening. for example:
- Do not provide sensitive information about your child, such as a Social Security number, unless it is essential.
- Keep documents containing sensitive information from your child, such as a safe locked in your closet.
- If you want to dispose of such documents, make sure you thoroughly clean your identification information (for example, shred them).
- If any of the devices contain child’s personal information, cleanse the data before removing the device.
- Check with the Credit Reporting Office to see if your child’s name has a credit report. Children under the age of 18 generally do not have a credit report. If they have it, it could be a sign that someone else has gained credibility in the child’s name.
If you find that your child’s information has been compromised, please report the identity theft to the Federal Trade Commission and local police. Next, you will be in touch with the companies that have expanded your child’s credit and close your account. Ask for confirmation that your child is not responsible for the account.
From there, you can begin cleaning your child’s credit report and ask the three credit departments to remove all inaccurate or incorrect information. The Fair Credit Reporting Act requires the Credit Reporting Office to remove inaccurate input from your child’s account if you provide them with proof. This will help protect your child’s credit history and give you the opportunity to build good credit in the future.
How to Freeze Your Child’s Credits
Each of the three credit departments provides instructions on how to freeze minor credit. Although some of the application process can be completed online, each department must mail a series of documents establishing their identity, child identity and relationships with minors.
What if your child’s identity is stolen?
In most cases, children under the age of 18 do not have a credit report. If you find out that your child has a credit report, your child may be a victim of identity fraud. In this case, you need to take immediate action by doing the following:
- Please contact the Federal Trade Commission via IDTHEFT.GOV to report identity theft and secure a child identity theft report.
- Report identity theft to local law enforcement agencies and obtain a police report regarding identity theft.
- Contact the company where the fraudulent account was created and instructs them to close the account. You will also need to send a written letter explaining the situation and directing you to close your account. It is recommended to surround identity theft reports from the FTC and police records.
- Contact each of the three credit bureaus to challenge the fraudulent accounts and activities listed on your child’s credit report. You will also be asked to send documents and information about disputes, such as FTC identity theft reports and police reports.
FAQ
Conclusion
Children start with a blank credit slate. Scammers can use untouched records by using their child’s personal information to open financial accounts and to gain government benefits. One way to prevent this is to freeze your child’s credits.
If you find that your child’s credit has already been infringed, you should submit a report with the appropriate authorities and take immediate action to clean up any damaged records.
