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A credit lock and a credit freeze are two ways to protect your credit reports from being used by scammers to open new accounts.
You may see the terms “credit freeze” and “credit lock” used interchangeably, and they do offer similar protections. The three major credit reporting bureaus — Equifax, Experian and TransUnion —sometimes promote their credit lock services.
However, there are key differences between the two services. Credit locks can carry a monthly fee, while credit freeze options are free. And while unlocking your credit can be faster than “thawing” a credit freeze, a freeze may afford legal protections that a lock doesn't. These are important distinctions to consider.
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When you freeze your credit at the credit bureaus, you restrict access to your credit report so most lenders can’t see your information until you unfreeze it. Since a creditor is unlikely to open a new account in your name without checking your credit, that protects you from fraudulent accounts. Unfreezing your credit report may require the use of a password-protected account or a PIN. Requesting a freeze online or over the phone typically takes just a few minutes, but it could take longer for the freeze to go into effect.
What is a credit lock?
Similarly, when you lock your credit, you restrict most lenders’ access. But you can unlock your credit report immediately at any time, on your computer or mobile device, when you do want to allow access. With a lock, you’ll also usually receive alerts if your credit report changes or someone tries to access your report.
Credit freeze vs. lock
When to use a credit freeze
A credit freeze helps protect your credit report. It’s a smart option if you’re a victim of identity theft or believe your information has been compromised, as happened in the 2017 Equifax data breach.
NerdWallet recommends freezes for most consumers as a preventive measure. Freezing your credit report at all three bureaus (Equifax, Experian and TransUnion) is vital to fully protecting your information.
Federal law requires credit bureaus to offer free credit freezes and unfreezes. You can also freeze your child's credit for free. Freezing your credit won’t hurt your score, and you can still access your credit records and scores when your credit is frozen. On NerdWallet, you can get a free credit report and monitor your score.
Thaw your credit report with each of the credit bureaus through a password-protected online account, a phone call or sending a request along with verifying information by mail.
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When to use a credit lock
You can use a credit lock as a preventive measure to protect your information or when your information has been compromised. Its convenience lets you quickly allow lenders access to your report and then immediately lock it again — if you’re shopping for a home or car, for instance.
Unlike a freeze, locks are not governed by federal law. Service agreements for each bureau make it clear that the companies don’t guarantee error-free operation or uninterrupted service. Credit lock services also aren’t always available to people under age 18.
As with a credit freeze, a credit lock is most effective if in place at all three bureaus.
What to know about Equifax, Experian and TransUnion credit locks
You can sign up for a credit lock at each bureau’s website and also access the respective app to lock or unlock your credit report. Each one offers a slightly different version of the credit lock, so read carefully to see exactly what you’re signing up for.
Equifax’s free credit lock product is called Lock & Alert. The company says it will be free for life. The terms of service do not include an arbitration clause or class action lawsuit waiver, which means you don't sign away your option to sue or join a lawsuit. Equifax notes that you cannot have a lock and a freeze on your Equifax report at the same time.
Experian's CreditLock is bundled with an Experian CreditWorks Premium membership for $24.99 a month. The subscription includes a credit lock, identity theft insurance and alerts when information changes on your report at all three bureaus. Its terms of service include an arbitration clause and class action waiver.
TransUnion’s Credit Monitoring service, at $29.95 per month, offers the lock/unlock option for TransUnion and Equifax credit reports. The terms of service do not include an arbitration clause or class action waiver.
If you want to lock your credit reports at all three bureaus, the cost would be about $660 per year. If you opt to freeze instead, you would pay nothing.
However, there are key differences between the two services. Credit locks can carry a monthly fee, while credit freeze options are free. And while unlocking your credit can be faster than “thawing” a credit freeze, a freeze may afford legal protections that a lock doesn't. These are important distinctions to consider.
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.
Credit freezes don't affect your credit scores. They limit access to your credit reports, which could keep creditors from seeing your credit scores. However, information can still be added and removed from your credit reports, and you can still check your credit reports and scores.
A credit freeze is a security measure you can take to prevent new accounts from being fraudulently opened in your name. But that also means you can't open a new account yourself while the freeze is in place. Credit freezes work by blocking new creditors from reviewing your credit report.
Placing a security freeze on your credit reports will not prevent your receiving pre-screened credit card or insurance offers, because security freezes generally only prevent hard inquiries in response to an application for credit.
On the bright side, credit freezes can last for a long time. Most states allow credit freezes to stay in place until you remove them, but other states allow freezes to expire after seven years. With credit freezes, you don't have to worry about your subscription expiring and removing your lock.
If you make the request online or by phone, the three major credit bureaus are required to lift the freeze within an hour . The request can be done by mail, but note that this is a longer process.
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. It is still important to check statements carefully. For more information about protecting your identity, visit our Security Resources page.
Starting in September of this year, the three major credit bureaus – Experian, Equifax, and TransUnion – will be required to let you both freeze and “thaw” your credit file for free as a result of a new bill passed by the Senate in May 2018.
The best way to know if someone has opened a bank account with your credentials is to request two reports from ChexSystems: your consumer disclosure and your consumer score. These can give you an idea of any negative marks against your name in the banking industry.
But in the meantime, if your account is frozen or might be, we recommend that you open a new bank account at a new bank where you don't owe any money. Notify your employer to deposit your paycheck into this new account. Move any money from your old account to your new account.
The three major credit reporting bureaus — Equifax, Experian and TransUnion —sometimes promote their credit lock services. However, there are key differences between the two services. Credit locks can carry a monthly fee, while credit freeze options are free.
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.
Why experts recommend freezing your credit. “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.”
A credit freeze restricts access to your credit report. If you suspect your personal information or identity was stolen, placing a credit freeze can help protect you from fraud.
You may be able to lock your credit cards, which blocks new charges and cash advances. Card lock is helpful when you've misplaced a card but expect to retrieve it, and it does not interrupt scheduled or pending transactions.
To remove a credit freeze from your account, contact the credit bureau where you've had your credit frozen. You may do this online, by phone or by mail.
Freezes are federally regulated. To freeze your other credit reports, you will need to contact Experian and TransUnion directly. Before applying for credit, you will need to lift your security freeze so that potential creditors can access your Equifax credit report.
Introduction: My name is Geoffrey Lueilwitz, I am a zealous, encouraging, sparkling, enchanting, graceful, faithful, nice person who loves writing and wants to share my knowledge and understanding with you.
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