A credit freeze and a credit lo🍰ck can both block access to your credit reports so that scammers can’t open an account🍰 in your name. You may want to do this if you were a victim of identity theft or your information was stolen in a data breach. While the two terms are sometimes used interchangeably, there are important differences between a credit lock and a credit freeze.

For e🎶xample, federal law requires credit freezes to be free at all three credit bureaus, whereas credit locks may be part of a paid service that offers additional identity theft protection services. Learn more about the difference between credit freezes and locks to protect your finances froܫm fraud.

Credit Lock vs. Freeze: Key Differences

Both credit freezes and credit locks prevent companies from running a hard inquiry on your credit to approve you fo🉐r a new account. The freeze or lock makes it impossible for crim🎶inals to open a new credit account in your name. 

Credit freezes are available for free at all three major 澳洲幸运5官方开奖结果体彩网:credit bureaus (Equifax, Experian, and TransUnion) thanks to a 2018 澳洲幸运5官方开奖结果体彩网:federal law. 

Credit locks, on the other hand, are often part of a paid subs🌊cription service offered by credit bureaus, which typically includes identity theft monitoring and credit score updates and alerts. Credit locks may be activated and removed faster than credit freezes—these requests usually take effect instantly. Credit freeze timing is federally regulated, with timings shown in the table above.

澳洲幸运5官方开奖结果体彩网:Credit lock services are not always available for consumers under 18. However, parents or guardians can use a credit freeze to protect the credit reports of a federally defined “protected consumer,” such as children under age 16 or people who are not able to manage their own finances. After children turn 16, they can manage the freeze themselves. 

When you place a lock or freez🦩e on you♍r credit reports, it only blocks inquiries related to opening new credit accounts. Some entities can still access your reports, including:

• Yourself
• Companies that have an existing relationship with you (like your credit card issuers or a credit monitoring service you purchased)
• Insurance companies and potential employers, during the application process
• Collection agencies
• Government agencies

What Is a Credit Lock?

A credit lock restricts access to your credit reports, so no new credit accounts can be opened in your name. You may have to pay a monthly fee to lock your credit, which may provide access to other related services that vary by credit bureau. Here’s what credit locks cost at each of the three major credi☂t bureaus:

• Experian: 7-day free trial, followed by $24.99 per month, for Experian CreditWorks Premium
• TransUnion: $29.95 per month through the TransUnion Credit Monitoring service 
• Equifax: Free

You’ll typically get a notification if any organization tries to make a 澳洲幸运5官方开奖结果体彩网:hard inquiry on your credit repor🃏ts for the purpose of opening a new account.

Along with the ability to lock your credit, the credit bureaus provide additional services with the packages mentioned above, such as fraud resolution support, 澳洲幸运5官方开奖结果体彩网:credit fraud alerts, and identity theft insurance coveraꦇge. You can often manage your credit l🃏ock through a credit bureau’s website or mobile app.

What Is a Credit Freeze?

A credit freeze, also known as a security freeze, also blocks access to your credit report, but it’s free at every credit bureau thanks to federal law. You can call the credit bureaus to plac෴e freezes, but if you’d like to manage freezes online you’ll need to create an account with each credit bureau.

As with a credit lock, a credit freeze will prevent any new credit accounts from being opened in your name, whether the applications come from you or an identity thief. Unlike credit lock services, however, which are generally only open to adults 18 and older, credit freezes can be used by parents or guardians to freeze credit reports of minor children or other people who aren’t able to manage their own finances. 

If you want to open a credit card or take out a loan while your credit is frozen, you can 澳洲幸运5官方开奖结果体彩网:remove (or thaw) the freeze i༒ndefinitely or just temporarily, for a period of time you specify. You may be able to schedule a thaw in advance to prepare for an upcoming credit application, as well.

Frequently Asked Questions (FAQs)

The Bottom Line

Whether your personal info♕rmation was compromised in a data breach or you’ve detected fraud on your credit reports, freezing or locking your credit can protect you from having new accounts opened in your name.

A credit freeze may be your best option if you’re looking for a free service or a way to protect your child’s credit reports. A credit lock, on the other hand, may be preferable if you want additional identity theft and credit fraud moni😼toring services and you’re willing to pay for them. 

Either way, you’ll need to request a freeze or lock with all three credit bureaus individually. You’ll also have to remove the freeze or lock with all three credit bureaus if you want to open a credit card or 澳洲幸运5官方开奖结果体彩网:apply for a loan. 

Freezing or locking your credit isn’t the only step you can take to prevent yourself from credit fraud. It’s also important to use strong passwords for your accounts, avoid checking financial accounts on public WiFi, and review your credit reportsജ regularly for suspicious activity.