Credit Freeze vs. Lock: What's the Difference?

Both credit freezes and credit locks are valuable tools to help protect your credit, but there are important differences. Learn more about which service is best for your personal finances.

Credit freeze and credit lock are terms regularly used interchangeably, and you may even see credit bureaus advertising these services together. But, they're a bit different when it comes to protecting your credit.

While both can be used to restrict access to your credit reports and keep your identity safe, knowing the differences between them can help you decide which is the best fit for your situation and better prepare you to protect your credit.

What is credit feeeze?

A credit freeze is a secure way to restrict access to your credit report. Placing a freeze on your credit prevents anyone from opening up a new line of credit and using your information without you knowing. Because a credit freeze restricts access to new credit under your name, it's a strong protection against fraud, especially for those dealing with identity theft.

The option to freeze your credit is protected by federal law, so the 3 credit bureaus—TransUnion, Experian, and Equifax—are required to provide this service to you free of charge. It actually can be a good idea in many cases to keep your credit reports frozen until you need to apply for a mortgage, credit card, or other types of loan.

What is credit lock?

A credit lock—another credit bureau offering—provides a quicker method of preventing lenders from accessing your credit. You can also activate and disable a credit lock instantly from a mobile app or secure website.

This means you can keep your credit accounts locked most of the time, but unlock them fast when looking to open a personal line of credit, such as an emergency loan. Similar to a credit freeze, a credit lock protects you in case someone tries to open a credit card account or take out a loan in your name. A credit lock is more of a quick fix; however, it must be requested from each credit bureau separately, and, in some cases, can entail a monthly fee.

Credit lock vs. credit freeze: Main differences explained

A credit freeze and a credit lock can look like the same service. While both accomplish the same thing, certain elements do set them apart, which can make one more useful based on your situation. Here's a visual breakdown of the differences to simplify if a credit freeze or a credit lock provides the best level of protection for your credit and finance:

When to use a credit freeze?

If you suspect you're a victim of identity theft or your personal or financial information has been compromised in a data breach, you can freeze your credit. While preventing identity thieves from continuing to access your information, it also stops them from opening new accounts in your name. If you need to unfreeze your credit report, you can give authorization to each of the credit bureaus, through a protected account or by using your assigned PIN. Be aware that you still have access to your credit records and scores under a credit freeze and it doesn't hurt your credit score.

Pros and cons of a credit freeze

The benefits of a credit freeze include security (freezes are protected by law, locks aren't) and flexibility, meaning you can add and remove them from your report as needed.

However, be aware with credit freezes, you'll most likely need to track and safely store a different PIN for each credit bureau. Also, if you want to lock your credit instantly, then a credit freeze might not be your best option since it can take up to 5 business days for the freeze to take effect.

How to freeze your credit report

You can freeze your credit with the credit bureaus over the phone, online, or by mail. However, you'll need to request a credit freeze at each of the credit bureaus, which means contacting TransUnion, Experian, and Equifax separately. After verifying your identity and freezing your credit, you'll be given a PIN, which you'll need when it comes time to unfreeze it.

In general, a credit freeze lasts until you choose to unfreeze it, but this varies in some states, so be sure to check the laws and guidelines in your area.

To freeze your credit at each of the 3 credit bureaus, the information is as follows:

• Experian: You can start your Experian credit freeze online or by calling the bureau at 888-397-3742.

• TransUnion: You can start a TransUnion credit freeze online or by calling 888-909-8872.

• Equifax: You can start an Equifax credit freeze online or by calling 888-298-0045.

When to use a credit lock

Credit locks are best used as a preventative measure against potential identity theft and fraud. Like a credit freeze, it may make sense to keep your credit locked whenever you aren't actively applying for a new loan or line of credit.

However, some experts recommend locking your credit only if you suspect fraudulent activity, so your credit is ready for lenders to access if you need to apply for credit. But, you can always use a credit lock as a proactive measure (even if no fraud is suspected) to ensure your credit is continuously protected.

Like a credit freeze, it typically makes sense to keep your credit locked whenever you aren't actively applying for a new loan or line of credit, although some experts recommend locking your credit only if you suspect fraudulent activity. They suggest doing this so your credit is ready for lenders to access if you need to apply for credit. But, you can always use a credit lock as a proactive measure (even if no fraud is suspected) to ensure your credit is continuously protected.

Pros and cons of a credit lock

A credit lock can be more beneficial than a freeze since it's quick and convenient. It also provides proactive protection in a timely fashion since you can place a lock on your credit within minutes.

The downside of a credit lock includes having to contact all 3 bureaus to get full protection. And, while some bureaus do offer this free of charge, others will present you with a fee, so be sure to check when looking to lock your credit.

Credit locks also aren't protected by law, meaning you don't have the right to one free of charge like you do with a credit freeze. This also subjects you to potential pricing and term changes from year to year.

How to lock your credit report

There's no central place to lock all your credit reports at one time. Similar to a freeze, you'll need to lock your credit reports at all 3 bureaus to ensure your information is safe.

Here's how to lock your report with each of the major bureaus:

• Experian: Sign up for Experian's CreditLock service.

• TransUnion: Sign up with TransUnion's TrueIdentity service to have credit monitoring services and credit locks.

• Equifax: You can register for Equifax's credit lock services.

Final thoughts

Freezing or locking your credit ultimately helps prevent unauthorized users from opening accounts in your name. If you don't plan on applying for any new credit in the near future, a credit freeze may be the best option for protecting your credit. However, if you apply for new credit regularly, a credit lock might be more convenient to turn on and off on short notice.  

Either way, make sure you continue to make credit monitoring part of your financial routine, along with protecting your personal information and using unique usernames and strong passwords to avoid the risk of identity theft. No matter what you choose, both credit freezes and credit locks are valuable tools in helping protect your identity!