Credit freeze vs. credit lock

What is a credit freeze?

A credit freeze locks down access to your credit reports, making it much harder for fraudsters to open accounts in your name, according to Camberato. Taking this step can help protect your identity, whether there’s been a real threat or you want to take proactive precautions to keep your information safe.

Legally, credit freezes fall under the Fair Credit Reporting Act (FCRA), which means they come with strong federal protections, Camberato says.

How do you freeze your credit?

Putting a freeze on your credit is free to do, and it’s a simple process. First, you’ll contact the three credit reporting agencies — Equifax, Experian and TransUnion — over the phone, online or through the mail.

• Equifax: Create a myEquifax account where you can manage a credit freeze. You can also call (888) 298-0045 or fill out this form, print it and mail it to Equifax, along with the required documentation noted at the bottom.
• Experian: Create an account here to easily manage your credit freeze request. You can also call (888) 397-3742 or mail your request with the required documentation)
• TransUnion: Create an account here to easily manage your credit freeze request. You can also call (800) 916-8800 or mail a written request that includes your name, address and Social Security number.

Requesting a credit freeze through your online account is generally the quickest and easiest method. You can expect a freeze to be added or removed instantaneously. Calling the credit bureau yields similar results: The credit freeze will be added or removed right away, but you’ll spend additional time on the phone.

When you request a credit freeze to be added or removed via mail, the credit bureaus have three days from the time they receive your request to get the job done. So this is by far the slowest method.

What is a credit lock?

A credit lock functions similarly to a credit freeze, but most people consider it less “formal” than a freeze. That’s likely because you can turn a credit lock on or off through an app or website, while a credit freeze requires a formal request to a credit bureau, Camberato says.

That said, modern online capabilities make adding or removing a credit freeze much easier. Incidentally, there’s less disparity between the two services in recent years.

If you see suspicious activity or just want to add a layer of security, you can lock your credit in seconds using an app, says Camberato. Some apps offer this service for free, while others may roll it into a “premium credit monitoring” add-on package.

In any case, “having access to a credit lock at a moment’s notice can be very helpful if you suspect suspicious activity. So, it’s usually a good idea to either sign up for these services if they make sense for you financially or find a provider offering a free credit lock,” Camberato said.

Pro tip

It’s important to understand that when you put a freeze or a lock on your credit, you won’t be able to apply for any sort of loan or line of credit without first removing the freeze or the lock. So keep that in mind if you plan to apply for a mortgage, loan or credit card.

How do a credit freeze and a credit lock compare?

A credit freeze and a credit lock are two very similar services. The major difference is that credit locks are a service offered through credit bureaus or credit apps, while credit freezes fall under the Fair Credit Reporting Act (FCRA).

When to use a credit freeze or lock

A credit freeze is the better option when you need the highest level of security, like if your identity has been stolen and someone is actively trying to take out loans in your name, says Camberato. “Since freezes are free and federally protected, they’re a good choice if you want maximum peace of mind,” he said.

A credit freeze is also handy to protect those whose personal information might be more vulnerable to predators, like minor children or incapacitated adults. In these cases, you can freeze their credit for them until they’re better able to manage their own financial situation. A credit lock would also work for these situations, but many people still prefer to utilize the enhanced protection of a credit freeze for these longer-term situations.

Bottom line

Credit freezes and locks both protect your credit, but choosing the right one depends on your financial goals. If you’re focused on debt consolidation, a credit lock offers more flexibility, allowing you to unlock your report quickly for loan applications. On the other hand, a credit freeze is best for long-term security.