Every time you hand over your personal information to open a credit card, get a loan, or rent a car, you're increasing the possibility your data will get in the wrong hands. Data breaches reached a record high in 2021, according to the Identity Theft Resource Center.

If your personal information was compromised by a data breach, you may be worried about identity theft. But even if you think your personal information is safe, it's smart to take steps so thieves can't open accounts in your name.

Freezing your credit is an easy step that prevents someone from using your personal information for their financial gain.

How do I freeze my credit?

The three major credit card companies all give you the option of freezing your credit. When your credit file is frozen, creditors can't check your report, preventing someone who has your personal information from opening a new credit line in your name.

If you want to apply for new credit or a loan, you can lift the freeze with a PIN or a phone call.

You must freeze your credit individually with each of the three major credit bureaus