Credit freezes and credit locks both block unauthorized access to your credit reports. Freezes are free and may afford more legal protections. Lauren Schwahn is a writer at NerdWallet who covers debt, budgeting and money-saving strategies.
A credit freeze, also known as a security freeze, is the best way to help prevent new accounts from being opened in your name. It's absolutely free to freeze and unfreeze your credit, and it won't affect your credit score.
A credit freeze is one major way to help prevent identity theft and fraud, even if a criminal has key information such as your birthdate and Social Security number. Freezing your credit is free and won't harm your credit.
When the freeze is in place, you will still be able to do things like apply for a job, rent an apartment, or buy insurance without lifting or removing it. Duration: A credit freeze lasts until you remove it. How to place: Contact each of the three credit bureaus — Equifax, Experian, and TransUnion.
While credit lock vs. freeze might sound different, they function similarly: A credit freeze is a free service that stops new accounts from being opened, while a credit lock is a service from the credit bureaus that lets you lock and unlock your credit faster than a freeze.
While a freeze will most likely prevent them from opening new accounts in your name, it cannot prevent fraud on your existing accounts. If thieves get hold of your credit card number, for example, they can still run up a bunch of charges in your name, credit freeze or no.
A security freeze, also known as a credit freeze, is one way you can help protect your personal information against fraud or identity theft.
Keep in mind that if you plan to open up a new account/loan (mortgage, home equity line, credit card, auto, etc.), or apply for a new job, you'll need to unfreeze your account. If you need to remove the freeze, you may be charged a fee every time your freeze is lifted for a credit check.
When freezing your credit to limit the processing of new credit applications, you must make a separate freeze request at each of the national credit bureaus (Experian, TransUnion and Equifax).
What is a credit freeze? When you place a security freeze, creditors cannot access your credit report. This will keep them from approving any new credit account in your name, whether it is fraudulent or legitimate.
If you know your Social Security information has been compromised, you can request to Block Electronic Access. This is done by calling our National 800 number (Toll Free 1-800-772-1213 or at our TTY number at 1-800-325-0778).
For example, when actively shopping for a car, you must thaw the freeze before shopping for financing, including financing through a car dealer. Although thawing a freeze requires only a few seconds, you must do it at all three credit bureaus.
Freezing your credit is free, and you'll need to do it with all three credit bureaus to lock down each of your credit reports. And again, the freeze will stay in place until you lift it.
A credit freeze won't have any impact on your credit score, nor will it impact your current credit accounts. While a credit freeze won't affect your credit score in any way, it will impact your ability to qualify for a loan or credit card unless you thaw your credit file before submitting your application.
The fastest and easiest way to remove a credit freeze, also known as a security freeze, is through a secure online account, but you can also thaw your credit by mail or by phone.
You have to unfreeze your credit at all three credit bureaus individually, unless you know which credit bureau a creditor is using for credit checks and choose to lift your freeze at just that one.
Security freezes and Experian CreditLock both limit access to Experian credit reports, but they differ several ways: Freezes are free, while CreditLock is part of paid subscriptions. CreditLock can be managed instantly, but security freeze changes could take longer.
Some state tax departments won't allow you to file your income tax return online if your file is frozen because they too verify your identity with correct answers to information in your credit report. This can prevent someone from intercepting your return.
Open a Wage Account or Government Benefit Account
In addition, most federal benefits, such as social security or disability payments, are exempt from garnishment. Protection of these funds remains after they are deposited into your bank account if you can trace them to their exempt source.
Applying a security freeze prohibits LexisNexis Risk Solutions and SageStream from releasing your LexisNexis Consumer Disclosure Report, your SageStream Consumer Report, or your credit score without your express authorization.
Initiate a fraud alert or a credit freeze
In addition, you can freeze your credit (you'll have to do this individually at all three credit bureaus). When your credit report is frozen, you won't be able to open any new credit accounts in your name – but neither will anyone else.
Contact the Internal Revenue Service (IRS) at 1-800-908-4490 or visit them online, if you believe someone is using your SSN to work, get your tax refund, or other abuses involving taxes. Order free credit reports annually from the three major credit bureaus (Equifax, Experian, and TransUnion).
LifeLock's services could be good for you in the following scenarios: If you want insurance coverage against losses from identity theft. LifeLock's Ultimate Plus plan insures you for $1 million in eligible losses due to identity theft. You could use this insurance to cover passports, personal expenses, and legal fees.
If you want to lock your credit, you can do so by signing up for a credit locking service with one or all of the major credit bureaus. Using the service usually involves downloading an app and creating a unique login to access your account.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.