A credit freeze can help prevent new lenders from accessing your credit report and keep you or anyone else from opening new accounts in your name. It can be a safeguard against fraud and identity theft.
Let’s look at what a credit freeze is, what it’s useful for and how to freeze your credit.
How does a credit freeze work?
A credit freeze restricts access to your credit report. While your credit is frozen, you – or anyone else – can’t open new accounts in your name. Freezing your credit can help prevent scammers from opening fraudulent accounts.
A credit freeze does not block all credit inquiries; landlords or rental agencies, debt collection agencies and lenders with whom you already have accounts may still be able to access your profile. A credit freeze also doesn’t prevent you from building credit or using your existing credit – your accounts remain open, and you can continue using them.
Credit freezes are free, as mandated by federal law. You can freeze your credit online, over the phone or by mail.
Why freeze your credit?
A credit freeze can be a good idea if you think you might be a victim of identity theft, especially if you experience any of the following:
- Credit accounts or inquiries on your credit report from lenders you don't recognize
- Bills or collection notices for debts you didn't authorize
- You find out you may be a victim of a data breach
- Your banks or lenders inform you of unusual or unauthorized activity
Because a credit freeze doesn’t impact your ability to build credit, some people freeze their credit as a safeguard even when there is no immediate risk of fraud. This can be convenient if you don't plan to open any new accounts in the near future.
How do you freeze your credit?
To freeze your credit, you must contact each of the 3 major credit bureaus and request a credit freeze. There are several ways to do this:
- Online: You can request a credit freeze with all the major credit bureaus online. Log into their websites or create an account if you don't already have one.
- Phone: You can request a credit freeze over the phone by calling each of the major credit bureaus.
- Mail: It’s possible to freeze your credit by mail. To do this, send the required materials to each of the 3 credit bureaus.
Things to know before a credit freeze
While freezing your credit can help protect you from certain types of fraud, here are a few things you should know:
- The process: Understand the credit freeze process for each credit bureau and know what documents you’ll need beforehand.
- It’s free: You can freeze and unfreeze your credit at no cost.
- What a credit freeze can’t do: A freeze can only prevent new accounts from being opened in your name. It doesn’t prevent other forms of fraud, like unauthorized account access or stolen credit cards.
- Opening new accounts: While a credit freeze can help prevent scammers from opening new accounts on your behalf, it also prevents you from opening any new credit accounts. Fortunately, you can easily unfreeze your credit when you need to give a bank or lender access to your credit information and freeze your credit again after.
How to unfreeze your credit
You can unfreeze (or thaw) your credit the same way you can freeze it – online, by phone or by mail.
How long does it take to lift a credit freeze?
If you thaw your credit online or by phone, credit bureaus must complete the request within an hour. If you make your request by mail, they must complete the request within 3 business days.
Is there a difference between a credit lock and a credit freeze?
A credit lock offers similar benefits to a credit freeze, but while credit freezes are governed by federal law, credit locks are not. Credit locks can offer convenience – you don’t need a pin to unlock your credit, and in some cases, you can unlock it using an app – but the service may cost money.
How does a fraud alert compare to a credit freeze?
Similar to credit freezes, fraud alerts are mandated by federal law and offered by all three major credit bureaus. However, unlike a credit freeze, a fraud alert doesn’t block access to your credit report.
There are a few types of fraud alerts, but in general, a fraud alert is a notice attached to your credit reports that tells creditors you are – or may be – a victim of fraud. It requires creditors to verify your identity before opening a new credit account in your name.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
