Credit Freeze: What It Is and How It Works

What a credit freeze does

A credit freeze, also called a security freeze, restricts access to a consumer's credit report. When a freeze is in place, a creditor or other third party generally cannot access the report to evaluate a new application for credit. This can make it harder for someone to open a new account in the consumer's name because the lender cannot review the underlying report.

The freeze does not change the information in the credit report. It does not prevent the consumer from obtaining their own report, and it does not stop existing creditors from accessing the report for account review, collection, or other permissible purposes. Certain government agencies may also access reports for specific purposes such as child support or tax collection.

A freeze is different from a credit lock, which is a product some companies offer. A freeze is a legal right under federal law. A lock may be a contractual feature with terms set by the company. Consumers can compare the two, but the freeze is the statutory option.

Credit freeze vs. fraud alert vs. security freeze

The terms credit freeze and security freeze generally describe the same restriction. Federal law uses security freeze, while many consumers and companies use credit freeze. Guides on this site cover the credit freeze security freeze distinction and related topics.

A fraud alert is different. An initial fraud alert lasts one year and asks businesses to verify identity before extending credit. An extended fraud alert can last seven years and requires an identity theft report. A freeze blocks access to the report; a fraud alert does not block access but adds verification steps.

A freeze does not replace a fraud alert, and a fraud alert does not replace a freeze. Consumers can use both. IdentityTheft.gov provides a recovery plan for identity theft, which can include an extended fraud alert.

How a freeze is placed, lifted, or removed

Under federal law, a consumer can contact each nationwide credit reporting company to place a freeze. The nationwide companies are Equifax, Experian, and TransUnion. Each company has its own process, and a freeze at one company does not automatically apply at the others.

To place a freeze, a company typically asks for identifying information such as name, address, date of birth, and Social Security number. The company then provides a PIN, password, or other credentials. Those credentials are needed to lift or remove the freeze later.

A temporary lift allows a creditor to access the report for a specified period or for a specific party. A removal ends the freeze until the consumer requests a new one. Guides on this site cover how to unfreeze credit, how to unfreeze credit at Experian, how to freeze credit at Experian, and how to freeze credit at Equifax.

Federal law requires these actions to be free at each nationwide company. State laws may add requirements, but the federal standard sets a baseline for consumers.

What can still happen during a credit freeze

A freeze is not a complete block on all activity. Existing creditors can still access the report for account review, and debt collectors can access it for collection. The consumer can still get their own report, and government agencies can access it for specific purposes.

A freeze does not stop a thief from using existing accounts or from committing other types of identity theft, such as tax refund fraud or medical identity theft. It also does not stop all prescreened offers unless the consumer also opts out.

Some services, such as insurance or employment screening, may request a credit report. A freeze can affect those requests unless the consumer lifts it for that party. Consumers can ask the company about its access needs.

How long a freeze lasts and how it is governed

Federal law allows a freeze to remain in place until the consumer requests removal. A temporary lift can be for a set period or for a specific party. State laws may set different rules, but the federal freeze right applies nationwide.

The Fair Credit Reporting Act is the main federal law that governs credit reporting and freezes. The Economic Growth, Regulatory Relief, and Consumer Protection Act amended the Fair Credit Reporting Act to establish the national freeze rules. The Consumer Financial Protection Bureau provides consumer information about freezes.

The Federal Trade Commission also publishes guidance on credit freezes and fraud alerts. Consumers can use these sources to understand the legal framework and their options.

Common situations where a freeze is considered

A freeze is often discussed after a data breach or when a consumer suspects identity theft. If a thief has enough information to open a new account, a freeze can block the credit report access that a lender would use to approve the application.

A freeze can also be part of a broader plan after identity theft. IdentityTheft.gov guides consumers through recovery steps, including placing a fraud alert or freeze and reporting the theft to the Federal Trade Commission.

Some consumers place freezes as a preventive measure and lift them temporarily when applying for credit. Others place a freeze at one company and not the others, which can leave gaps because lenders may use different reports.

A freeze is not the same as a credit monitoring service. Monitoring can alert a consumer to changes, while a freeze restricts access. The two can be used together.