How to protect your deceased loved one’s credit after death
When a loved one passes away, there are many things to take care of, from making funeral arrangements to going through the probate process. While you don’t have to do anything about your loved one’s credit, you may want to take a few steps to look into it.
Monitoring and even protecting a deceased person’s credit may seem counterintuitive, but there are good reasons to make time for this task if you have the authority to represent the deceased.
What happens to credit reports after death?
After a person passes away, their credit report will eventually be deleted. However, the process takes longer than you might expect.
When the credit bureaus learn of a death, they add a flag to the credit report. The flag is a fraud prevention strategy that tells lenders that the owner of the credit file is deceased and will not be applying for new credit.
After seven years, the deceased person’s credit file is deleted, Experian explains. Credit bureaus wait so long to delete the file to prevent identity theft. If the file was deleted right away, it would be easier for criminals to take out new credit in your loved one’s name.
Should you report a death to credit bureaus?
The credit bureaus have ways of learning that a person has died. Funeral homes report deaths to the Social Security Administration (SSA), and the SSA periodically passes the information to the credit bureaus. However, since the process could take weeks or months, it’s a good idea to report the death yourself.
Financial details may become vulnerable when someone dies. Some criminals use obituaries, death certificates and information from funeral homes to steal the identities of people who have died. These criminals might open new accounts or commit other crimes under the deceased’s name, causing problems for living relatives at an already stressful time.
Reporting a death to the credit bureaus places a “deceased — do not issue credit” flag on their credit report. The lender should see the notice if a criminal tries to take out credit in the deceased person’s name. This makes it much tougher for thieves to open new accounts.
How do you report a death to credit bureaus?
Before reporting a loved one’s death to the credit bureaus, determine if you’re allowed to file the report. You’ll need to be either your loved one’s surviving spouse or have the legal authority to handle their affairs (such as being the executor of their estate).
As a spouse or other person with legal authority, you can report your loved one’s death by writing a letter to any of the three major credit bureaus: Equifax, Experian or TransUnion. The first bureau you contact will notify the other two on your behalf.
In your letter, you’ll need to specify your relationship to your loved one and provide certain information to help the credit bureau find their credit file. That includes your loved one’s:
- Full legal name, as it appears on their official documents
- Social Security number (SSN)
- Date of birth and location of birth
- Date of death
You’ll also need to enclose any documentation that supports your request. The credit bureaus will require a certified copy of your loved one’s death certificate. If you’re not their spouse, you must prove that you’re legally authorized to act on their behalf, such as an executor agreement.
There is no specific letter template you need to use. However, sample letters online might be helpful, like this one from the South Carolina Department of Consumer Affairs.
Send your letter to one credit bureau via certified mail so you can receive confirmation that it’s delivered. You only need to send a letter to once, since they will inform the others.
Here are the addresses for notifying credit bureaus of a death:
TransUnion
P.O. Box 2000
Chester, PA 19016
Experian
P.O. Box 9701
Allen, TX 75013
Equifax Information Services LLC
P.O. Box 105139
Atlanta, GA 30348-5139
How do you request a copy of the deceased’s credit report?
When you write your letter to the credit bureaus, you should also request a copy of your loved one’s credit report.
Looking over the credit report lets you confirm that the credit report has been marked “deceased — do not issue credit,” as you requested. It also helps you identify debts and put together a complete list of the estate’s creditors.
Unfortunately, identity thieves can still strike after death. Reviewing your loved one’s credit report helps you spot suspicious activity, such as accounts your loved one did not open or hard inquiries they did not initiate.
What do you do if you notice fraud on a deceased loved one’s credit report?
Identity theft and fraud are crimes, even if the victim is a deceased person. If you notice suspicious activity in your loved one’s credit history, consider taking the following steps:
- File a report with the Federal Trade Commission (FTC): Visit IdentityTheft.gov to file a report. There’s a section in the report where you can note that you’re filing the complaint for an adult who can’t complete the form. Once you submit the report, the FTC will recommend steps you can take to protect your loved one’s identity.
- File a report with your local police department: Reporting identity theft helps the police identify fraud patterns. The police report may also be required by creditors.
- Notify your loved one’s creditors: Notify banks and other lenders that the suspicious activity is the result of fraud and your loved one is deceased. They may request a copy of the death certificate or police report.
What happens to owed debt after death?
Once you’ve taken steps to protect your loved one’s credit from fraud and misuse, you may wonder what will happen with your loved one’s legitimate debts — such as their mortgage, car loan or outstanding credit card balances.
What happens to debt after death varies depending on the type of debt, your relationship to your loved one and your state. In general, a deceased person’s debts will be settled by their estate. That means the property and assets they owned at the time of their death will be used to pay off their debts.
However, you may be held personally responsible for a debt in some cases, such as if you co-signed for a loan for your loved one. Consider consulting with an estate lawyer for advice about which debts, if any, are your responsibility.
The bottom line
Protecting your deceased loved one’s credit report is helpful when you’re wrapping up their financial affairs. Start by notifying the credit bureaus of their passing, then request a copy of their credit report. Report the issue immediately if you spot any suspicious activity in their credit history.
Frequently asked questions
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If a scammer opens fraudulent accounts in a deceased person’s name, the crime can cause significant problems during probate. Money from the estate is used to pay off the deceased person’s debts and may be wrongly paid to settle fraudulent accounts. This reduces the money available to legitimate heirs and costs the executor time and stress.
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Typically, your credit report won’t be affected by another person’s passing. However, you could be mistakenly marked as deceased if you have accounts associated with your loved one (such as joint or co-signed accounts).As with any other credit report error, you can file a dispute to get the information corrected.
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No. Living people can request a credit freeze with the three credit bureaus to block access to their credit file, but that’s not an option for the deceased. When you report your loved one’s passing to the credit bureaus, each bureau will add a “deceased — do not issue credit” flag to the report.Much like the freeze available to living people, this flag should prevent misuse of their credit.
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When a person passes away, their credit card is no longer valid. Using the card could be seen as fraud, even if you are an authorized user on the account or only want to use the card for the funeral or other final expenses. Avoid using your loved one’s card and promptly notify the issuer of the death so the card can be canceled.
