What is a credit freeze?
Definition
A credit freeze, also called a security freeze, stops prospective creditors from seeing your credit report, so no one can open a new credit account in your name until you lift it.
- Category
- Identity
- Also called
- security freeze, credit security freeze
- Last updated
A credit freeze restricts access to your credit report. Lenders almost always check that report before they approve a new loan or credit card. With a freeze in place they can't see it, so they typically won't approve the application, whether it comes from you or from an identity thief using your name and Social Security number.
A freeze doesn't touch your existing accounts. Creditors you already have an account with, certain government agencies such as child support agencies, and companies you've hired to monitor your credit file can still see your file. You can also still request and review your own reports. The CFPB says a freeze has no effect on your credit scores.
How it works in the US
You place a freeze separately at each of the three nationwide credit reporting companies: Equifax, Experian and TransUnion. It's free by federal law, and you can do it online, by phone or by mail. Online or by phone, the company must place it within 1 business day. By mail, it has 3 business days. To lift it, even temporarily for a set period you choose, the company must act within 1 hour for online or phone requests and within 3 business days for mail.
The free-freeze law doesn't cover someone who requests your report for employment, tenant-screening or insurance purposes.
Credit freeze vs. fraud alert vs. credit lock
- A fraud alert doesn't block access. It tells creditors to take extra steps to verify your identity before opening a new account. An initial alert lasts up to one year.
- A credit lock is a paid product sold by credit reporting companies, often bundled with other services. The CFPB says locks are no more effective than security freezes, which are free and which you have a right to by law.
The catch is that a freeze also blocks you. If you're applying for a loan, a credit card or an apartment, lift it first and put it back afterward.
How to protect yourself
- 1
Freeze all three reports
Contact Equifax, Experian and TransUnion separately through their websites. A freeze at one company doesn't carry over to the others.
- 2
Keep the PINs or log-ins somewhere safe
You'll need them to lift the freeze later. Store them in a password manager, not in an email.
- 3
Lift it before you apply for credit
You can lift a freeze for a period you choose, then it goes back on by itself. Plan a day ahead so you aren't waiting when you're at the dealership.
- 4
Freeze for a child or a relative you look after
Federal law lets a parent or guardian request a freeze for a protected consumer under 16, or for someone who is incapacitated or has a guardian.
- 5
Cut down what thieves can find about you
A freeze stops new credit, but your address, birth date and phone number still sit on people-search sites. Serus finds where that data is listed and removes it, which makes it harder to build a convincing identity theft attempt.
See where your personal data is exposed
Serus finds it on data brokers and people-search sites and removes it.
Frequently asked
Does a credit freeze hurt my credit score?
No. The CFPB states that security freezes don't affect your credit scores in any way.
How much does a credit freeze cost?
Nothing. Placing, temporarily lifting and removing a freeze at Equifax, Experian and TransUnion is free under federal law.
How do I remove a credit freeze?
Contact each credit reporting company you froze with, online, by phone or by mail, and ask to lift it permanently or for a set period. By phone or online, they must do it within 1 hour.
Will a credit freeze stop all identity theft?
No. It helps against new accounts opened in your name. It doesn't stop someone misusing a card or account you already have, so keep checking your statements.
Sources
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