What’s the difference between these two options for protecting your credit report?
Credit freezes and credit locks sound similar but they’re not the same. Understanding the differences between these two ways of limiting access to your credit report can help you decide which option is best.
What’s a credit freeze?
A credit freeze prevents creditors from accessing your credit report or seeing your credit score unless you lift or “thaw” the freeze. A freeze can be lifted temporarily or permanently when you want a creditor to see your credit report. To do so you’ll need to set up an account and PIN or password with each of the three credit bureaus.
Here are links and phone numbers for the major credit bureaus:
By federal law, you have the right to freeze your credit for free.
What’s a credit lock and how is it different?
Like a freeze, a credit lock restricts access to your credit report by creditors. A key difference is that locks may be bundled with services—like credit monitoring and identity theft protection—and come with a monthly fee.
Apps from credit lock services provide the convenience of allowing users to lock or unlock their credit instantly, as well as get alerts on their mobile device. They’ll know right way about credit report changes or if someone tries to access their credit report.
TransUnion and Experian charge for locks (subscriptions start at $25) while Equifax offers locks for free. With paid services, locks are in place as long as you pay for the subscription.
Who should have a credit freeze or credit lock?
Everyone should protect their credit report with either a freeze or a lock. Both help stop fraud like others opening credit in your name. Neither will affect your credit score.
If your personal data has been compromised due to identity theft or a data breach, a freeze is recommended. Credit freezes have the advantages of being free as well as governed by federal law.
The key advantage of a credit lock is convenience. Having a fast way to unlock credit smooths the way when setting up credit for things like utilities or cell phone service. However, locks are subject to the terms of a service agreement and don’t have the same level of legal recourse built in as credit freezes. And, most locks require a fee.
Lifting a credit freeze or lock is simple when you want to apply for things like a personal loan or credit card. Just remember to re-activate your freeze or lock after your creditor gets the information they need from your credit report.
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