Freeze (Credit Freeze or Security Freeze)

A credit freeze, also known as a security freeze, is a preventive measure used to restrict access to an individual’s credit report, which makes it more challenging for identity thieves to open new accounts in the name of the individual. This type of freeze is primarily activated in response to incidents of identity theft or when there is a significant risk of such fraud.

When a credit freeze is in place, credit bureaus cannot release the individual’s credit report or any part of their credit score to new creditors without explicit permission from the individual. This lack of access to credit information effectively stops most creditors from approving new credit applications, as they are unable to evaluate the creditworthiness of the applicant.

Consumers might also choose to initiate a credit freeze as a proactive step to manage or restrict their own spending, or to protect vulnerable family members, such as elderly parents, from financial scams or identity theft. Freezing credit can be a particularly effective tool in safeguarding the financial profiles of individuals who may not be actively seeking new lines of credit or who may be susceptible to deceptive credit offers.

It is important to note that a credit freeze does not affect a person's credit score, nor does it prevent them from using their existing credit accounts. Additionally, individuals can temporarily lift the freeze if they need to allow a legitimate credit check for loan applications or other financial activities. Typically, it is possible to place, lift, or remove a credit freeze by contacting the major credit bureaus directly, often through online platforms or over the phone.