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Someone with your name, birthday, and Social Security number can try to open a credit card as you. A credit freeze is a lock on that door. It costs nothing, and it leaves your credit score alone.
The simple version
A credit freeze stops new credit accounts from being opened in your name while it is on. According to the FTC, placing and lifting a freeze is free, and a freeze does not affect your credit score. While the freeze is on, lenders cannot check the file for new credit, even when you are the one applying. The FTC notes it may need to be lifted before applying for credit, and for some job, apartment, and insurance applications.
How it actually works
There are three nationwide credit bureaus: Equifax, Experian, and TransUnion. To set up a freeze, the FTC says to contact all three. To let a lender check your credit later, you contact the bureau or bureaus that lender uses and ask for the freeze to be lifted.
A fraud alert is a lighter tool. Instead of blocking access, it tells businesses to verify your identity before opening an account. You contact one bureau, and that bureau has to notify the other two.
Freeze and fraud alerts, side by side
| Credit freeze | Initial fraud alert | Extended fraud alert | |
|---|---|---|---|
| Who can use it | Anyone | Anyone who is, or suspects they may be, affected by identity theft | People who experienced identity theft and completed an FTC identity theft report at IdentityTheft.gov or filed a police report |
| Cost | Free | Free | Free |
| What it does | Stops new credit accounts from being opened in your name | Asks businesses to verify your identity before opening an account | Same verification, plus removal from marketing lists for unsolicited credit and insurance offers for five years |
| Who to contact | All three bureaus | One bureau (it notifies the other two) | One bureau (it notifies the other two) |
| How long it lasts | Until you lift it | One year, and it can be renewed | Seven years |
The Real Cost lens
The FTC says a freeze is free, so the cost is not money. It is a few minutes to set up at each bureau and the step of lifting it before a credit, job, apartment, or insurance application that needs a credit check. That is the whole trade: a small, planned hassle in exchange for a lock on new accounts.
What a freeze does not do
- It does not cut off accounts you already have. The CFPB notes that creditors on accounts you currently hold can still access your file.
- It does not change your credit score.
- It does not lock you out of your own file. The CFPB says you can still request and review your credit files while a freeze is on.
Common mistakes
- Freezing at one bureau only. The FTC says a freeze means contacting all three.
- Forgetting to lift it before an application, then being surprised when the check fails.
- Assuming a freeze hurts your score. The FTC says it does not.
Advanced insight
A freeze and a fraud alert solve different problems. A freeze blocks the credit file from being pulled for new accounts. A fraud alert leaves the file open but asks lenders to double-check who is applying. Which one fits is a personal call, and the FTC lays out both on the same page for that reason.
What this lesson is NOT
This is not a recommendation to freeze your credit or to use any particular product. It is not an identity theft recovery plan; IdentityTheft.gov, run by the FTC, provides one. And it is not legal advice on your rights under credit reporting law.
Related on this site
- Lessons in this series: How investment scams actually work, Impostor scams, Payment app scams, and The first hour after a scam.
- Lesson: Credit scores explained.
Frequently asked questions
Does a credit freeze hurt my credit score?
No. The FTC says a credit freeze does not affect your credit score.
Does a credit freeze cost money?
No. The FTC says placing and lifting a credit freeze is free.
Do I have to contact all three credit bureaus?
For a freeze, yes: the FTC says to contact Equifax, Experian, and TransUnion. For a fraud alert, contacting one is enough, because that bureau has to notify the other two.