Credit Freezes, Fraud Alerts, and Locks: Which One You Want
Three tools that sound alike and do different things. What each one blocks, what it costs, and how to put one in place.
If you are worried about someone opening accounts in your name, there are three tools available. They are not interchangeable.
Security freeze
A freeze restricts access to your credit report. A lender that cannot pull your report will not approve a new account, which is how a freeze stops new-account fraud.
- Free, by federal law, to place, lift, and remove
- You place it separately with each of the three bureaus
- You get a PIN or a login to lift it
- You can lift it temporarily for a specific window when you are applying for something
- It does not affect your existing accounts, your score, or your ability to use your current cards
A freeze is the strongest of the three and the one to choose if you are not planning to apply for credit soon.
Fraud alert
An alert does not block anything. It tells lenders to take reasonable steps to verify your identity before extending credit.
- Free
- You place it with one bureau and that bureau must notify the other two
- An initial alert lasts one year
- An extended alert lasts seven years and requires an identity theft report
- An active duty alert is available to deployed servicemembers
It is lighter friction than a freeze: you do not have to lift it before applying, but it relies on the lender actually doing the verification.
Credit lock
A lock is a product offered by the bureaus themselves, usually through an app, that does something similar to a freeze.
The differences worth knowing:
- A freeze is governed by federal law, with legal obligations attached. A lock is governed by the terms of a contract you agree to with the bureau
- Locks are sometimes bundled with a paid monitoring subscription
- Locks are typically faster to toggle on and off
If you want convenience, a lock is convenient. If you want the legal protections, take the freeze — it is free and it is a statutory right.
How to place a freeze
Each bureau has an online page for it, and each accepts phone and mail. You will need your name, address, date of birth, and Social Security number. Do all three; freezing one accomplishes very little.
Store the PINs somewhere you will actually find them in two years. Recovering a lost freeze PIN is tedious.
What none of these do
They do not stop fraud on accounts that already exist. Somebody with your card number can still use your card. Freezes and alerts are about new credit being opened in your name.
They also do not remove anything already on your report. If fraudulent accounts are already there, freezing your file stops the bleeding but you still need to dispute the accounts and file an identity theft report.
Beyond the big three
There are smaller specialty consumer reporting agencies — for check writing, rental history, and employment screening. Freezing the big three does not touch them. If your situation is serious, they are worth looking into as well.