A credit freeze is one way to help protect yourself from identity theft, but it doesn't prevent every type of fraud. Before deciding whether to freeze your credit, learn how it works, what it can and cannot protect against, and how it compares with a fraud alert.
What is a credit freeze?
A credit freeze, also called a security freeze, restricts access to your credit report. When a freeze is in place, most lenders can’t access your credit report to approve new credit in your name. This can make it harder for an identity thief to open a new credit card, take out an auto loan, apply for a mortgage, or open another account that requires a credit check.
A credit freeze is free to place and lift, does not affect your credit score, and is available to anyone. You don't have to wait until you’ve experienced identity theft or received notice of a data breach to freeze your credit. You can freeze your credit at any time to make it harder for someone to open new credit accounts in your name.
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What Can a Credit Freeze Prevent?
A credit freeze can help prevent someone from using your personal information to:
- Open a new credit card in your name
- Apply for a personal, auto, student, or home loan using your identity
- Open other accounts or obtain financing that requires a credit check
A freeze is primarily designed to prevent new account fraud. It can be especially useful after a data breach or other situation in which sensitive personal information, such as your Social Security number, may have been exposed.
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What doesn't a Credit Freeze prevent?
A credit freeze only restricts access to your credit report. It doesn’t protect every account or prevent every type of identity theft or fraud.
A credit freeze generally doesn’t prevent someone from:
- Using an existing credit card if they have your card information
- Accessing an existing account if they have your login credentials
- Making unauthorized purchases or withdrawals from your existing accounts
- Using your personal information for scams that don’t involve checking your credit
- Stealing money through phishing or other schemes that trick you into sharing passwords or codes
- Sending you pre-screened credit card offers. If you'd like to opt out of pre-screened offers, please visit www.optoutprescreen.com.
A freeze also doesn’t completely block access to your credit report. Certain entities may still be able to access your report for purposes permitted by law, including some existing creditors and government or law enforcement agencies.
Fraud Alerts
A fraud alert is another tool that can help protect your credit. It adds a notice to your credit report asking lenders to verify your identity before opening new credit accounts or making changes to existing accounts.
Unlike a credit freeze, a fraud alert does not restrict access to your credit report, so you can continue applying for loans and credit cards without lifting the alert. If a lender receives an application in your name, they may contact you to confirm your identity before approving it.
There are three types of fraud alerts:
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Initial Fraud Alert
Available to anyone who suspects they may be at risk of identity theft. It lasts one year and can be renewed.
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Extended Fraud Alert
Available to people who have experienced identity theft and have filed an FTC identity theft report or police report. It lasts seven years and can be renewed with a new report.
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Active Duty Alert
Available to active-duty service members. It lasts one year and can be renewed for the length of deployment.
To place a fraud alert, contact any one of the three credit bureaus, and that bureau will notify the other two. Fraud alerts are free, often take effect the same day, and do not affect your credit score. You can remove a fraud alert at any time by contacting each credit bureau. For added protection, you can place a fraud alert even if you already have a credit freeze in place.
Credit Freeze vs. Fraud Alerts
A credit freeze and fraud alert both help protect against identity theft, but they work differently. A credit freeze restricts access to your credit report, while a fraud alert asks lenders to verify your identity before extending new credit.
To place a fraud alert, contact any one of the three credit bureaus, and that bureau will notify the other two. Fraud alerts are free, often take effect the same day, and do not affect your credit score. You can remove a fraud alert at any time by contacting each credit bureau. For added protection, you can place a fraud alert even if you already have a credit freeze in place.
| Feature | Credit Freeze | Fraud Alert |
|---|---|---|
| What It Does | Restricts access to your credit report, helping prevent others from opening new credit accounts in your name. | Asks lenders to verify your identity before opening new credit in your name. |
| Cost | Free | Free |
| Duration | Remains in place until you remove it. | An initial fraud alert lasts one year and can be renewed. |
| How to Set It Up | Online, by phone or by mail; all three credit bureaus must be notified separately. | Online, by phone or by mail; the other credit bureaus will be notified when a fraud alert is set up at one bureau. |
| Remove By | Contacting each of the three credit bureaus separately. | Contact each of the three credit bureaus separately if you want to remove the alert before it expires after one year. |
| Best For | Someone who wants stronger protection against new-account fraud and is comfortable temporarily lifting the freeze when applying for new credit. | Someone who wants added protection against identity theft without restricting access to their credit report. |
How do I Freeze My Credit?
You need to place a freeze separately with each of the three major credit bureaus: Equifax, Experian, and TransUnion. Freezing your credit with one bureau does not freeze your reports with the other two.
You can request a credit freeze online, by phone, or by mail. According to TransUnion, freezes added or removed online or by phone typically take effect almost immediately. You'll need to provide information to verify your identity. If you create an online account or receive login information, keep your credentials secure.
Experian
Phone: 888-397-3742
Mail: Experian Security Freeze
P.O. Box 9554
Allen, TX 75013
TransUnion
Online: www.transunion.com/credit-freeze
Phone: 888-916-8800
Mail: TransUnion
P.O. Box 160
Woodlyn, PA 19094
Equifax
Phone: 888-298-0045
Mail: Equifax Information Services LLC
P.O. Box 105788
Atlanta, GA 30348-5788
How do I temporarily lift a credit freeze?
When you're ready to apply for new credit, you can temporarily lift your freeze online or remove it. You can manage a freeze online or by phone through the credit bureaus.
If you know which credit bureau the lender will use, you may only need to lift the freeze with that bureau. If you’re not sure which bureau the lender will check, you may need to lift your freeze with multiple bureaus.
Once you're finished applying for credit, you can place the freeze back in effect.
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Credit Freeze vs. Fraud Alert: What's the Difference?
Not sure which option is right for you? Our quick guide explains how credit freezes and fraud alerts work, how they differ, and how to contact all three credit bureaus.
View the Guide
How do I know if a Credit Freeze is right for Me?
If your information has been exposed in a data breach or you've experienced identity theft, a credit freeze may be worth considering. It can also be a good option if you don’t expect to apply for new credit soon and want to make it harder for someone to open a new account in your name.
If you’re concerned about identity theft but expect to apply for credit soon, a fraud alert may be a better fit. Our quick guide explains the differences between a credit freeze and fraud alert and includes contact information for all three credit bureaus here.
Keep in mind that these tools primarily help protect against new account fraud. Continue monitoring your accounts and credit reports, using strong passwords and multifactor authentication, and watching for phishing attempts and other scams.
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