What's the Difference Between Freezing and Locking My Credit? (2024)

FAQs

What's the Difference Between Freezing and Locking My Credit? ›

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.

You have the right to place credit freezes and credit locks on your credit reports, both of which restrict access to your reports and prevent new credit applications. They're not the same, however: Credit freezes are free, while credit lock costs vary.

“It's the most secure thing you can do to protect your credit,” said Droske, who recommends keeping your credit frozen until you need it. “You know when you are going to apply for a mortgage, car loan or credit card.” Freezing your credit can also help you avoid making impulse purchases.

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 a security freeze can help protect you by preventing certain access to your credit reports if someone attempts to open a new credit account in your name, it can't help protect you against other forms of fraud, such as a stolen credit card number.

Credit freezes don't affect your credit scores. They limit access to your credit reports, which could keep creditors from seeing your credit scores.

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).

A common misconception is that a credit freeze means you can't use your current forms of credit, like a credit card. But your credit report isn't accessed when you purchase something with a credit card. So, freezing your credit file doesn't affect your ability to use your existing accounts.

Deciding whether to cancel an unused credit card is a personal decision that depends on your financial situation and goals. Keeping the card open can help maintain a healthy credit score by contributing to your credit history and utilization ratio.

A credit freeze is free and prevents lenders from checking your credit in order to open a new account.

How can I quickly unfreeze my credit? ›

The quickest and easiest way to unfreeze your credit report is to contact the credit bureau (or bureaus) you used to freeze your credit either online or by phone. But you also have the option to contact them by mail.

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.

System errors, file mixups, data breaches, or even identity theft may be why your credit is frozen without you initiating it. System errors, file mixups, data breaches, or even identity theft may be why your credit is frozen without you initiating it.

A freeze can give you a false sense of security — you may still be susceptible to credit fraud or other fraud involving your Social Security number. A credit freeze won't affect your current accounts, but if a thief steals the information on an existing account, your credit may be used without your permission.

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).

It's important to notify all three major credit bureaus of the death and request a credit freeze. Some debts may still need to be settled after a loved one's passing, and it's important to contact creditors and handle these matters carefully.

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.

Your report can still be released to your existing creditors or to collection agencies acting on their behalf. They can use it to review or collect on your account. Other creditors may also use your information to make offers of credit- unless you opt out of receiving such offers.

Placing a lock on your credit card doesn't hurt your credit because the action isn't negative, and it isn't reported to the credit bureaus. Remember, your credit report is a record that details your history of managing debt.

Placing a freeze on your credit means that no one can access your information to fraudulently open a new account in your name. The freeze does not impact your credit score.