Credit Lock vs. Credit Freeze

A credit freeze and credit lock are often confused as being the same thing. Both can block creditors and others from accessing your credit file and opening an account in your name. Both a freeze and a lock can help protect you from identity theft. Typically, freezing your account is free but locks come with a fee.

A credit freeze lets you restrict access to your credit file. This makes it harder for someone trying to steal your identity to open a new account in your name. A lender needs your credit report to determine if you are qualified to receive a new line of credit. When you have a credit freeze in place, your credit report cannot be pulled up and the lender is unable to approve a loan or credit card.

Freezes are free and a bit harder to undo. Freezes are required by law to be free. A credit freeze cannot affect your credit score, prevent you from: opening a new account, obtaining your free credit report, or from theft. If you want to lift a freeze, then you required to have a PIN to unlock it online or you may have to request the PIN in writing.

 Locks aren’t always free and can be easier to open and reapply. It is likely to come with a monthly fee. It will block access to your credit file, like a freeze, so that a new account cannot be opened in your name. To place a lock or a freeze on your credit file, you must first contact the three credit bureaus. A credit lock has no legal protection in place, so credit bureaus are not responsible if a new account has been opened in your name. When you want to lift your lock, you are able to do so instantly online.

 When should you use a lock or freeze? If your credit report and/or other personal information has been wrongly used or exposed, you should use a credit freeze. A credit lock is used more as preventative measures, before anything was to happen. To freeze or lock your credit file, you will first need to contact all three credit bureaus. The first step in knowing if you need to lock or freeze your credit file is to check and monitor your credit score. A jump in your score could be fraud. Check out freecreditreport.com