Everything to Know About Credit Freezes

Credit freezes are a powerful tool to safeguard your credit in today’s digital age. Let’s take a closer look at this protective measure, how it works and when and how to implement one.

What is a credit freeze?  

A credit freeze restricts access to your credit report, so most companies cannot view your credit file or open new accounts in your name. This makes it difficult for identity thieves to take out loans or lines of credit using your information.

What’s the difference between a credit freeze and a credit lock?

A credit freeze and a credit lock both restrict access to your credit report, but there are key differences between the two measures:

• Credit freeze – involves verifying your identity through each credit bureau (Equifax, Experian and TransUnion). It provides strong protection and is free to place, lift and remove.
• Credit lock – a feature offered by the credit bureaus themselves, often as part of a paid service. Unlike a freeze, a credit lock is managed through an app or online portal, making it easier and faster to unlock or lock your credit. But, it may come with a fee and does not have the same legal protections as a freeze.

When should I place a credit freeze?

You might consider placing a credit freeze in one of these scenarios:

• After being the victim of identity theft or a data breach. Freezing your credit can prevent scammers from opening accounts in your name.
• If you don’t plan to apply for new credit in a while. Freezing your credit can be a proactive way to guard against fraud.
• To protect the vulnerable, such as children or the elderly. Placing a credit freeze on a child’s or elderly person’s credit can safeguard them from identity theft.

How do I place a credit freeze on my accounts?

To place a credit freeze, you must contact each of the three major credit bureaus separately. Each bureau has its own process, but the general steps include visiting the credit bureau’s website, verifying your identity and setting up a password. Once your identity is verified, the credit bureau will confirm that the freeze is in place.

It’s important to note that you’ll need to go through this process with all three bureaus.

How do I lift a credit freeze?

To lift, or temporarily thaw, a freeze, you’ll need to visit the websites of each credit bureau again. You can choose to specify a duration for the thaw and/or a specific creditor to lift it for. After the specified amount of time, the freeze will automatically resume. Otherwise, just ask for the freeze to be lifted indefinitely.

While unlocking a credit freeze is typically instant, thawing a credit freeze may take up to an hour or longer to process, depending on the bureau.