Credit Freeze
A free consumer protection tool that restricts access to your credit report, preventing lenders from opening new accounts in your name without your authorization.
What is Credit Freeze?
A credit freeze (also called a security freeze) restricts the major credit bureaus — Equifax, Experian, and TransUnion — from sharing your credit report with new potential creditors. Because most lenders check your credit before approving a loan or credit card, a freeze effectively blocks anyone from opening new credit in your name — including identity thieves. Since the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, credit freezes are free for all consumers. They can be placed and lifted online, by phone, or by mail. A freeze does not affect your current accounts, credit score, or ability to receive existing account statements. You must unfreeze temporarily when applying for new credit. A freeze differs from a fraud alert (a softer protection that flags your file and requests lenders to verify identity before granting credit). Security experts widely recommend credit freezes as the most effective free tool for preventing new-account identity theft.
Example
Following the 2017 Equifax data breach that exposed personal information of 147 million Americans, the FTC urged all consumers to place a credit freeze. A freeze would have prevented thieves from using stolen Social Security Numbers to open fraudulent credit cards, auto loans, or utility accounts — a crime that can take victims years to resolve and may not be discovered until credit is checked for a major purchase.