How to Lock Down Credit

Locking down credit generally refers to restricting who can access a consumer's credit report. The main tool is a security freeze, also called a credit freeze. Under federal law, the three national credit reporting companies—Equifax, Experian, and TransUnion—must allow consumers to place a freeze for free. A freeze prevents most lenders and other entities from seeing the credit report when someone applies for new credit. It does not affect existing accounts, and it does not prevent access by government agencies or for certain other purposes. A consumer must place a freeze separately with each of the three companies.

To place a security freeze, a consumer contacts each national credit reporting company online, by phone, or by mail. Each company requires identifying information such as name, address, date of birth, and Social Security number. After verifying identity, the company provides a personal identification number or password. That code is needed to lift or remove the freeze later. A freeze can be lifted temporarily for a specific period or for a specific lender, or removed entirely. The process is free. If a consumer is a victim of identity theft, additional protections may apply, including the right to an extended fraud alert and the ability to block fraudulent information from appearing in a credit report.

A fraud alert is different from a freeze. With a fraud alert, a consumer asks creditors to take reasonable steps to verify identity before extending credit. An initial fraud alert lasts one year. An extended fraud alert, available to victims of identity theft who provide an identity theft report, lasts seven years. An active duty alert is for military personnel on active duty. For a fraud alert, a consumer only needs to contact one of the three national credit reporting companies, and that company must notify the other two. Fraud alerts do not block access to credit reports; they add a verification step.

Credit locks are a separate option. Each of the three national credit reporting companies offers a credit lock product, often through a mobile app. These locks are governed by the company's own terms of service, not by the same federal law that governs security freezes. That means the legal protections and the process for lifting a lock may differ. Like a freeze, a lock restricts access to the credit report, but it may not carry the same legal rights. A lock also does not affect credit scores directly, and it does not stop existing creditors or government agencies from accessing the report. Consumers who want the strongest legal protections often use a security freeze.