Credit Freeze vs. Fraud Alert vs. Credit Lock: Which Should You Use?

Every few months another data breach makes the news, and the advice that follows is usually the same: freeze your credit. But if you start looking into it, you quickly run into three similar-sounding options: a credit freeze, a fraud alert and a credit lock. They all promise to protect you from identity theft, and they are described in ways that make them seem interchangeable.

They are not. They work in different ways, they carry different protections under the law, and the right choice depends on your situation. This guide explains each one in plain language, compares them side by side, and gives you steps to place them.

The short answer

• A credit freeze stops most new creditors from viewing your credit report, so it is very hard for anyone to open a new account in your name. It is free, does not affect your score and stays until you remove it.
• A fraud alert puts a flag on your file asking businesses to verify your identity before opening new credit. It is free, lasts one year (longer in some cases) and does not block access to your report.
• A credit lock is similar to a freeze, but it is a service from the credit bureaus governed by their own terms, not by federal law, and some come with a fee or a paid plan.
• For most people, the best everyday protection is a freeze at all three bureaus. Lift it temporarily when you apply for credit.

How the three compare

The three bureaus are Equifax, Experian and TransUnion. Each keeps a separate file on you, which is why protection has to be applied at each one for a freeze or a lock.

What a credit freeze is

A credit freeze, also called a security freeze, tells a credit bureau not to release your credit report to most new creditors. Most lenders will not approve a new account without checking your report, so a freeze makes it very difficult for an identity thief to take out a loan or open a card in your name, even if they have your Social Security number.

Some important points, based on guidance from the Federal Trade Commission (FTC):

• It is free. There is no cost to place or lift a freeze.
• Anyone can do it. You do not have to be a victim of identity theft. You can freeze your credit for any reason.
• It lasts until you lift it. There is no expiration.
• It does not affect your credit score.
• It applies to you too. While your credit is frozen, nobody can open a new account in your name, including you, until you lift it.
• You place it with each bureau. You must contact Equifax, Experian and TransUnion separately.

Federal law, which took effect in September 2018, made freezes free. It also sets short deadlines. Generally, a bureau must place a freeze within one business day of a request made online or by phone, and must lift a freeze within one hour of an online or phone request. Requests made by mail take a few business days. Check each bureau for its current process.

What a freeze does not stop

A freeze is powerful, but it is not a shield against everything. In general, a freeze does not block:

• Existing creditors. Companies you already do business with can still access your report to review or manage your accounts.
• Debt collectors working on your existing debts.
• Government agencies and others with legal authority, such as under a court order.
• You. You can still get your own credit reports. You can get free reports at AnnualCreditReport.com.
• Misuse of an account you already have. If someone steals your existing credit card number, a freeze does not stop charges on that card.
• Other kinds of identity theft, such as filing a fake tax return in your name or using your medical insurance.

You will also still receive marketing offers unless you opt out. You can stop prescreened credit and insurance offers at OptOutPrescreen.com, which is the official opt-out service run by the bureaus.

What a fraud alert is

A fraud alert is a notice added to your credit file. It tells anyone who views your report that they need to take extra steps to verify your identity before extending credit. Often that means calling you at a number you provided.

Unlike a freeze, a fraud alert does not stop lenders from seeing your report. It just adds a requirement to verify your identity. There are three types:

A fraud alert can be useful when you want a lighter touch than a freeze. One practical advantage is that you do not need to lift anything when you apply for credit. A lender simply verifies it is really you. The downside is that it relies on businesses following through, so it is generally less protective than a freeze.

Placing an initial fraud alert also typically gives you the right to an extra free copy of your credit report from each bureau, which is worth reviewing.

What a credit lock is

A credit lock works much like a freeze from your point of view. You switch it on and the bureau restricts access to your report, and you switch it off when you want to apply for credit. The main difference is how it is offered.

• It is a product, not a legal right. Locks are offered by the bureaus under their own terms and conditions. Freezes are governed by federal law.
• It can be faster. Locks are usually controlled through a mobile app, so you can turn them on and off with a tap.
• It may cost money. Some basic locks are free, and others are bundled with a paid credit monitoring or identity protection subscription. Terms vary by bureau and plan.
• The fine print matters. Because a lock is a contract, the terms of service may include things like arbitration clauses or permission to market other products to you. Read them before you sign up.

The FTC notes that freezes and fraud alerts are the options backed by federal law, which gives you more certainty about how they work and what they cost. A lock can be perfectly reasonable if you prefer the convenience, but a freeze gives you the same practical protection with legal backing and no cost.

Which one should you choose?

Here is a simple way to think about it.

Most people: a freeze at all three bureaus

If you want the strongest everyday protection and you do not apply for credit very often, a freeze is the best choice. It is free, and the occasional inconvenience of lifting it is small compared with the risk of a thief opening accounts in your name.

You apply for credit often, or want something lighter: a fraud alert

A fraud alert is easier to live with if you are shopping for loans or cards regularly. You do not have to lift and replace anything. It protects less than a freeze, but it adds a useful hurdle.

You have been a victim of identity theft: an extended fraud alert and a freeze

If someone has misused your identity, you can have both. The extended fraud alert lasts seven years and requires you to have filed an identity theft report. A freeze adds stronger blocking. Visit IdentityTheft.gov to create a report and a recovery plan.

You are in the military: an active duty alert

If you are deployed, an active duty alert is free and lasts a year with renewal available. You can also use a freeze.

You were just notified of a data breach: a freeze

If a company tells you your personal information was exposed, a freeze is usually the most effective response. A fraud alert is a reasonable stopgap.

You already pay for a bureau's service: a lock may be fine

If a lock is included in a plan you already use, it can serve as a convenient layer. Just understand that it is not the same as a legal freeze.

You want to protect a child: a child's freeze

The FTC says that if your child is under 16, you can request a free freeze, and it stays in place until you ask the bureaus to remove it. A child usually should not have a credit file at all, so a freeze can prevent misuse of their information. The process differs from the adult process, so check each bureau's instructions. There are also ways to freeze the credit of an adult who cannot manage their own affairs, such as a protected consumer, so ask each bureau about its process.

How to place a credit freeze

The steps are similar at each bureau.

1. Gather your information. You will need your name, address, date of birth and Social Security number, and sometimes extra proof of identity.
2. Go to each bureau's official website and look for its freeze page: Equifax, Experian and TransUnion. Make sure you type the address yourself or use the bureau's own site, not a link from an email or text message.
3. Create an online account or follow the phone instructions, and request the freeze.
4. Save your PIN or password. You will need it to lift the freeze. Store it in a password manager, not in your email.
5. Confirm the freeze is on. Each bureau should confirm it, and you can often see the status in your online account.
6. Repeat with all three bureaus.

The whole process usually takes about 10 to 15 minutes if you do it online.

How to lift a freeze when you apply for credit

When you want a loan, a card, a mortgage or a new cell phone plan, you will need to lift the freeze, at least at the bureau the lender will check.

1. Ask the lender which bureau it uses. Some use one, some use two or all three. Mortgage lenders often pull from all three.
2. Lift the freeze at that bureau. You can choose a temporary lift for a set number of days or a permanent removal. A temporary lift places the freeze back automatically.
3. Apply for the credit.
4. Check that the freeze is back. If you chose a permanent lift, put the freeze back on right away.

If a lender cannot view your report, it will often deny the application or put it on hold. If you ever receive an unexpected denial, a forgotten freeze is one of the first things to check. Planning ahead helps: lift the freeze before you submit an application, not after.

Remember that applying for credit usually triggers a hard inquiry. Our guide to how long a hard inquiry stays on your report explains what to expect.

What else you can do

A freeze deals with new credit accounts. Identity theft can take other forms, so consider these extra steps:

• Check your credit reports regularly. You can get free reports from all three bureaus at AnnualCreditReport.com (opens in a new tab). Look for accounts or inquiries you do not recognize. Our guide to how credit scores work explains what is on a report.
• Use credit monitoring or free score alerts. Monitoring tells you after something changes, while a freeze helps stop it from happening. See our list of the best credit monitoring services and free credit score sites.
• Protect your tax identity. The IRS offers an Identity Protection PIN that helps prevent someone else from filing a return in your name.
• Consider freezes at other agencies. Some specialty reporting agencies, such as those used for bank account openings or utility and phone accounts, also let you place freezes. Ask whether it is worth it for you.
• Use strong, unique passwords and two-factor authentication on your bank and email accounts.
• Opt out of prescreened offers at OptOutPrescreen.com to cut down on mail that thieves could use.

What to do if you think you are a victim of identity theft

If you spot accounts or charges you did not make, act quickly.

1. Place a fraud alert and a freeze with the credit bureaus.
2. Get your credit reports and mark every account, address and inquiry you do not recognize.
3. Report the theft at IdentityTheft.gov (opens in a new tab). The site walks you through a recovery plan and creates an identity theft report you can use to dispute fraudulent items.
4. Contact the companies where fraud occurred. Close or freeze those accounts and dispute the charges.
5. Dispute errors with the credit bureaus. Our guide on hard inquiries also explains the basic dispute process.
6. Keep records of every call, letter and report number.

Common mistakes and scams

Freezing only one bureau. A thief can still try the others. Freeze all three.

Losing your PIN. If you forget it, you may have to go through extra identity checks to lift the freeze. Keep it in a password manager.

Forgetting the freeze when applying. A frozen file can make an application stall. Lift it before you apply.

Using unofficial websites. Scammers set up look-alike pages and emails offering to "freeze your credit." Always go directly to a bureau's official site, and never pay for a freeze or a fraud alert, because both are free by law.

Treating a lock as identical to a freeze. They feel alike in daily use, but the legal protections and terms differ.

Assuming a freeze stops everything. It does not stop misuse of an account you already have. Keep watching your statements.

Frequently asked follow-ups

Will a freeze affect my existing credit cards or loans? No. Your existing accounts continue as normal, and your lenders can still see your report to manage them.

Does a freeze delay my free annual reports? No. You can still get your own reports while your credit is frozen.

Do employers, landlords and utilities see my report with a freeze on? A freeze generally blocks new creditors, and a landlord, employer or utility that wants to check your report may be blocked until you lift the freeze. If you are applying for a job, apartment or service that includes a credit check, ask whether it is needed and lift the freeze for the right bureau.

How often should I check my credit? Many people check at least once a year, and some check more often. You can get free reports regularly from AnnualCreditReport.com.

What if I move or change my name? Update your information with the bureaus. Your freeze usually stays in place, but check each bureau's instructions.

The bottom line

A credit freeze, a fraud alert and a credit lock all aim to make it harder for someone to open credit in your name, but a freeze is the strongest and the best supported by law. For most people, freezing credit at all three bureaus and lifting it only when needed is the best combination of protection, cost and simplicity. A fraud alert is a lighter option and an extended fraud alert helps identity theft victims, and a lock can be convenient if you accept the terms.

You can take care of the main step in about 15 minutes. Do it today at Equifax, Experian and TransUnion, save your PINs, and then check your reports at AnnualCreditReport.com. Once you understand how credit reports and scores work, protecting them becomes much easier.

Sources and further reading

• Federal Trade Commission, What to know about credit freezes and fraud alerts (opens in a new tab)
• Federal Trade Commission, Free credit freezes are here (opens in a new tab)
• IdentityTheft.gov (opens in a new tab), the federal government's identity theft reporting and recovery site
• AnnualCreditReport.com (opens in a new tab), the official source for free credit reports
• OptOutPrescreen.com (opens in a new tab), the official opt-out service for prescreened offers

Credit bureau processes and product terms change. This article is general information, not legal or financial advice. Confirm current details with Equifax, Experian and TransUnion and the sources above.