A credit lock and a credit freeze are two ways to protect your credit reports from being used by scammers to open new accounts.
You may see the terms “credit freeze” and “credit lock” used interchangeably, and they do offer similar protections. The three major credit reporting bureaus — Equifax, Experian and TransUnion —sometimes promote their credit lock services.
However, there are key differences between the two services. Credit locks can carry a monthly fee, while credit freeze options are free. And while unlocking your credit can be faster than “thawing” a credit freeze, a freeze may afford legal protections that a lock doesn't. These are important distinctions to consider.
What is a credit freeze?
When you freeze your credit at the credit bureaus, you restrict access to your credit report so most lenders can’t see your information until you unfreeze it. Since a creditor is unlikely to open a new account in your name without checking your credit, that protects you from fraudulent accounts. Unfreezing your credit report may require the use of a password-protected account or a PIN. Requesting a freeze online or over the phone typically takes just a few minutes, but it could take longer for the freeze to go into effect.
What is a credit lock?
Similarly, when you lock your credit, you restrict most lenders’ access. But you can unlock your credit report immediately at any time, on your computer or mobile device, when you do want to allow access. With a lock, you’ll also usually receive alerts if your credit report changes or someone tries to access your report.
Credit freeze vs. lock
When to use a credit freeze
A credit freeze helps protect your credit report. It’s a smart option if you’re a victim of identity theft or believe your information has been compromised, as happened in the 2017 Equifax data breach.
NerdWallet recommends freezes for most consumers as a preventive measure. Freezing your credit report at all three bureaus (Equifax, Experian and TransUnion) is vital to fully protecting your information.
Federal law requires credit bureaus to offer free credit freezes and unfreezes. You can also freeze your child's credit for free. Freezing your credit won’t hurt your score, and you can still access your credit records and scores when your credit is frozen. On NerdWallet, you can get a free credit report and monitor your score.
Thaw your credit report with each of the credit bureaus through a password-protected online account, a phone call or sending a request along with verifying information by mail.
When to use a credit lock
You can use a credit lock as a preventive measure to protect your information or when your information has been compromised. Its convenience lets you quickly allow lenders access to your report and then immediately lock it again — if you’re shopping for a home or car, for instance.
Unlike a freeze, locks are not governed by federal law. Service agreements for each bureau make it clear that the companies don’t guarantee error-free operation or uninterrupted service. Credit lock services also aren’t always available to people under age 18.
As with a credit freeze, a credit lock is most effective if in place at all three bureaus.
What to know about Equifax, Experian and TransUnion credit locks
You can sign up for a credit lock at each bureau’s website and also access the respective app to lock or unlock your credit report. Each one offers a slightly different version of the credit lock, so read carefully to see exactly what you’re signing up for.
Equifax’s free credit lock product is called Lock & Alert. The company says it will be free for life. The terms of service do not include an arbitration clause or class action lawsuit waiver, which means you don't sign away your option to sue or join a lawsuit. Equifax notes that you cannot have a lock and a freeze on your Equifax report at the same time.
Experian's CreditLock is bundled with an Experian CreditWorks Premium membership for $24.99 a month. The subscription includes a credit lock, identity theft insurance and alerts when information changes on your report at all three bureaus. Its terms of service include an arbitration clause and class action waiver.
TransUnion’s Credit Monitoring service, at $29.95 per month, offers the lock/unlock option for TransUnion and Equifax credit reports. The terms of service do not include an arbitration clause or class action waiver.
If you want to lock your credit reports at all three bureaus, the cost would be about $660 per year. If you opt to freeze instead, you would pay nothing.