Credit Freeze vs. Credit Lock: The Free Tool That Protects You from Identity Theft

Data breaches happen constantly. In 2025 alone, hundreds of millions of Americans had their personal information — names, Social Security numbers, addresses, dates of birth — exposed in corporate data breaches. If your information is out there (and statistically, it probably is), a thief could potentially use it to open a credit card, take out a loan, or rent an apartment in your name.

The most effective protection against this kind of new-account identity theft is a credit freeze. It's free, it's powerful, and most Americans have never set one up. Here's everything you need to know.

What Is a Credit Freeze?

A credit freeze (also called a security freeze) is a restriction you place on your credit reports at the three major credit bureaus — Equifax, Experian, and TransUnion. When a freeze is in place, lenders and creditors cannot access your credit report to approve new credit applications.

This means: if an identity thief tries to open a credit card or personal loan using your stolen information, the lender will try to pull your credit, fail because of the freeze, and deny the application. No new account gets opened. Your identity is protected.

Credit freezes do not affect your existing credit accounts. Your current credit cards still work. Your credit score isn't impacted. You can still apply for a job, rent an apartment, or get insurance — these checks use different processes or you can temporarily lift the freeze.

Is a Credit Freeze Free?

Yes. 100% free. Thanks to the Economic Growth, Regulatory Relief, and Consumer Protection Act passed in 2018, all three major credit bureaus are required by federal law to offer credit freezes at no charge. You can place and lift a freeze as many times as you want for free.

This was not always the case — bureaus used to charge up to $10 per bureau to place a freeze. That changed when it became clear that consumers were paying for protection against the bureaus' own data security failures.

Credit Freeze vs. Credit Lock: What's the Difference?

Credit bureaus also sell "credit locks" as a premium product, often as part of identity monitoring subscriptions costing $10-25/month. Here's how they compare:

Feature	Credit Freeze	Credit Lock
Cost	Free (federal law)	Usually paid ($10-25/month)
Legal protection	Governed by federal law	Governed by service agreement
Speed to lift/lower	Immediate (online or by phone)	Immediate via app
Effectiveness	Identical protection	Identical protection

In terms of protection, a credit freeze and a credit lock do exactly the same thing. The difference is legal protection and cost. A credit freeze is backed by federal law — if a bureau improperly allows access despite a freeze, you have clear legal recourse. A credit lock is governed by a contract with the bureau, and the terms can change.

Recommendation: Use the free credit freeze. Credit locks are a way for bureaus to monetize protection against problems partly caused by their own security failures. There's no meaningful advantage to paying for a lock over the free freeze.

What a Credit Freeze Does NOT Protect Against

A credit freeze only prevents new account fraud — someone opening new accounts in your name. It does NOT protect against:

• Existing account fraud: If a thief gets your actual credit card number, they can still use it on your existing accounts. A freeze doesn't help here.
• Tax identity theft: Filing a fraudulent tax return in your name to claim your refund. Report this to the IRS and file Form 14039.
• Medical identity theft: Someone using your insurance to receive medical care. Monitor your Explanation of Benefits statements.
• Employment fraud: Someone using your Social Security number to get a job. The IRS will flag this if you get a CP2000 notice.

For these other types, monitoring your existing accounts, checking your Social Security earnings record annually, and using strong unique passwords on financial accounts are the main protections.

How to Freeze Your Credit (Step by Step)

You must freeze your credit at all three major bureaus separately. Each bureau has its own process, but all offer online freeze placement:

Equifax

• Website: equifax.com/personal/credit-report-services/credit-freeze
• Phone: 1-800-685-1111
• You'll create an account and receive a PIN for lifting/removing the freeze

Experian

• Website: experian.com/freeze/center.html
• Phone: 1-888-397-3742
• Online process; you'll need to verify your identity

TransUnion

• Website: transunion.com/credit-freeze
• Phone: 1-888-909-8872
• Requires creating an account

Each process takes about 5-10 minutes per bureau. Total time: 20-30 minutes to freeze all three. Once placed, the freeze is permanent until you lift or remove it — there's no expiration date.

Also consider: ChexSystems and Innovis

ChexSystems is used by banks to screen new account applicants. Freezing ChexSystems prevents thieves from opening bank accounts in your name. Innovis is a smaller credit bureau used by some lenders. Both offer free freezes at chexsystems.com/freeze and innovis.com/security-freeze.

When You Need to Lift the Freeze

If you want to apply for credit — a new card, an apartment, a car loan — you'll need to temporarily lift (or "thaw") the freeze at whichever bureau the lender uses. Most lenders will tell you which bureau they pull from; if they don't, ask.

Lifting a freeze is free and can be done immediately online or by phone. You can specify a date range for the lift (e.g., "lift for the next 7 days") or lift and then re-freeze manually after your application is processed.

This is the one "inconvenience" of a credit freeze — you need to take an extra step before applying for new credit. For most people, this happens rarely enough that it's a minimal hassle for significant protection.

Should You Freeze Your Kids' Credit Too?

Yes, if you have children under 16. Child identity theft is surprisingly common — thieves target children because the fraud can go undetected for years. The major bureaus are required to place free freezes for minor children upon parental request. You'll need to verify your identity and your relationship to the child.

Credit Freezes and Your Financial Health

Identity theft can be financially devastating — it can take years to repair a credit score damaged by fraudulent accounts, and the process of disputing fraudulent accounts is time-consuming and stressful. A credit freeze prevents the most common type of identity theft at zero cost.

Protecting your credit score matters because your credit score affects your ability to rent an apartment, get a reasonable interest rate on an auto loan or mortgage, and sometimes even get certain jobs. Keeping your score intact is part of your overall financial health.

Cash Balancer helps you track your complete financial picture — debts, budgets, spending, and income — so you always know where you stand financially. Staying on top of your numbers makes it easier to spot anything unusual quickly. Download free on iOS.

The Bottom Line

If you haven't frozen your credit at all three bureaus, set aside 30 minutes today and do it. It's free, it's permanent protection, and it's the single most effective thing you can do to prevent someone from opening fraudulent accounts in your name.

Don't pay for a credit lock when a freeze does the same thing for free. Don't wait until after something bad happens. And don't assume your current accounts are enough — you need to protect the ability to open new accounts just as much as the accounts themselves.

Freeze it. Forget it. And only unfreeze it when you need to apply for something.