A credit freeze, a fraud alert and a credit lock all try to stop a stranger from opening an account in your name. The names sound alike, and the bureaus’ own sites don’t always make the difference obvious. Where they part is in how hard the barrier is, how long it lasts, and whether federal law stands behind it.
Freeze, fraud alert and lock side by side
A credit freeze (the law calls it a security freeze) blocks most new lenders from seeing your credit report. Few lenders open an account without that check, so a thief usually hits a wall.
A fraud alert is softer. Your report stays visible, but a note is attached telling lenders to take reasonable steps to confirm it is really you before they open new credit. In practice that often means a phone call or an extra identity check. It does not block anything by itself.
A credit lock works much like a freeze from the outside. Where they part ways is the legal footing: a lock is a product each bureau sells or gives away under its own terms of service, while a freeze is a right written into federal law.
The table leaves out locks on purpose, because there is no single answer for them. Each bureau sets its own price, its own app and its own rules, and those terms can change. If you are weighing a lock, read that bureau’s current terms before signing up.
Placing a free credit freeze
A federal law that took effect in 2018 made credit freezes free at the three nationwide credit bureaus: Equifax, Experian and TransUnion. Placing one and lifting one both cost nothing, as the FTC’s page on credit freezes and fraud alerts confirms.
Each bureau keeps its own file on you, though, so you have to freeze at each one separately. A lender might check any of the three, which is why a partial freeze leaves a gap.
A few things a freeze does not do. It does not lower your credit score. It does not close or affect your existing accounts, and the companies you already do business with can still review your file. Soft checks, like the ones behind prescreened offers or your own look at your report, still go through.
Online and phone requests are handled fast. The bureau has to place the freeze within one business day when you ask that way. Doing all three in one sitting means you are not left half covered for a week.
How does a fraud alert work and how long does it last?
A fraud alert is the easier option to set up. You contact any one of the three bureaus, and that bureau is required to pass the alert along to the other two.
There are three kinds. An initial fraud alert lasts one year, and you can place it if you think you might be a victim, for example after a data breach or a lost wallet. You can renew it when it runs out.
An extended fraud alert lasts seven years. It is for people whose identity has already been stolen, and you need an identity theft report to get one. That can be a report filed with the Federal Trade Commission or a police report.
The third is the active duty alert for service members. It lasts one year and is meant for people deployed away from their usual station, when they may not be around to notice something odd on their credit.
The weakness of a fraud alert is that it relies on the lender doing its part. A careful lender will call you. A careless one might not. Pairing an alert with a freeze closes that gap.
Is a credit lock worth paying for?
Locks are popular because they switch on and off in an app, often with one tap. The trade-off is the legal footing. A freeze comes with timelines and protections set by federal law. A lock is governed by the bureau’s own agreement, which the bureau can revise and which may include terms you would not expect, such as limits on how you can resolve disputes. Some locks are free; others come bundled with paid monitoring subscriptions. A freeze gives you the same core blocking without paying anything.
For most people, a free freeze covers what a lock does.
Matching the tool to your situation
Some common situations and the tool that fits each.
- You got a data breach notice, but nothing suspicious has happened: freeze at all three bureaus. An initial fraud alert is a reasonable extra layer while you sort things out.
- You are about to apply for a mortgage or car loan in the next few weeks: consider a fraud alert for now, and freeze once the loan closes.
- Someone already opened an account in your name: report it, then place an extended fraud alert and a freeze together.
- You rarely apply for credit: a freeze and nothing else is usually enough.
- You are deployed with the military: an active duty alert, plus a freeze if you want the stronger block.
You are allowed to use a freeze and a fraud alert at the same time. They do not cancel each other out.
Lifting a freeze before you apply
A freeze does its job too well if you forget about it. A lender that cannot pull your report will usually stall or deny the application, so plan ahead before shopping for credit.
You can lift a freeze for a set period of time or remove it altogether. When you ask online or by phone, the bureau must lift it within one hour. Mail requests take longer. If you know which bureau a lender uses, you only need to lift that one, so ask.
Pick a short window, a few days to a couple of weeks, so the freeze comes back on without you having to remember. Keep your PIN or login details somewhere safe, since you will need them each time.
Can you freeze a child’s credit?
Children are attractive targets because nobody checks their credit for years, often not until a first student loan or apartment.
Federal law lets a parent or guardian freeze the credit of a child under 16, and the FTC explains the steps in its guide to protecting your child from identity theft. Most children have no credit file at all, so the bureau creates one just to freeze it. You will typically need to send documents proving the child’s identity and your authority to act for them, such as a birth certificate and Social Security card. Each bureau lists what it accepts, and this is usually done by mail rather than online.
Should you freeze ChexSystems and NCTUE too?
The three big bureaus are not the only companies keeping records on you. ChexSystems collects banking history, and banks often check it before opening a checking account. The NCTUE holds data on phone, cable and utility accounts. Both let consumers place a security freeze. Most people can skip them, but if someone has been opening bank or utility accounts in your name, they are worth a look.
If you find fraud on your report
If you spot an account you did not open, go to IdentityTheft.gov, the Federal Trade Commission’s site. It walks you through reporting the theft and builds a recovery plan with letters you can send to companies and bureaus. The report you file there also counts as the identity theft report you need for an extended fraud alert.
After that, contact the company where the fraudulent account was opened, dispute the entry with each bureau that shows it, and freeze all three files if you have not done so. The FTC’s overview of identity theft warning signs lists other things to watch for. Change the passwords on your financial accounts too, and keep copies of every letter and report in one folder.
Related reading
- Hard vs Soft Credit Inquiries: How Many Applications Is Too Many?
- Your Loan Was Denied. What the Letter Tells You and What to Do Next
- Will Closing a Credit Card Hurt Your Score?
The freeze and fraud alert rules above follow the FTC’s summary of federal law. A credit lock is a product under Equifax’s, Experian’s or TransUnion’s own agreement, which can change, so read that bureau’s current terms before you sign up for one.
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