A credit freeze is a free security measure that limits access to your credit reports, making it harder for identity thieves to open new accounts in your name. It can be useful after a data breach, suspicious activity, lost personal documents, or whenever you are not planning to apply for new credit. A freeze does not lower your credit score, close existing accounts, or stop you from using current credit cards. However, it also does not prevent fraud on accounts that are already open.
To receive full protection, consumers generally need to place a freeze separately with Equifax, Experian, and TransUnion. Each bureau provides a process for creating, temporarily lifting, or permanently removing the freeze. When applying for a mortgage, auto loan, apartment, or new credit card, you may need to lift it so the appropriate company can review your report. Keeping account credentials and confirmation details in a secure location can make future changes easier.
A fraud alert is another option, but it works differently. It allows businesses to access your credit report while asking them to verify your identity before approving new credit. An initial fraud alert is free and generally lasts one year. Reviewing credit reports regularly and responding quickly to unfamiliar accounts or inquiries can provide an additional layer of protection.