Credit Lock vs. Credit Freeze: Which is Better to Prevent Identity Theft?

Identity theft and credit fraud are growing threats that can wreak havoc on your finances. In 2021 alone, identity theft losses topped $56 billion according to a report from Javelin Research & Strategy. And about 49 million Americans were victims of some type of identity fraud last year.

With fraudsters constantly finding new ways to steal personal information and open fraudulent accounts, it’s crucial to take proactive steps to lock down your credit. Two popular options for doing so are credit locks and credit freezes. But what’s the difference between the two? And which provides better protection against identity theft?

In this comprehensive guide, we’ll compare and contrast credit locks vs. freezes, so you can make the best choice for protecting your identity.

Let’s start with a quick overview of how each works before diving into the details.

At a Glance: Credit Locks vs. Freezes

Both options prevent new accounts from being opened in your name by restricting access to your credit report and score. But as you can see, there are some key differences between locks and freezes related to convenience, security, and cost.

Later in this guide, we’ll explore those distinctions in more detail. First, let’s start with a closer look at how credit locks work.

What is a Credit Lock?

A credit lock allows you to quickly “lock” and “unlock” access to your credit reports from Equifax, Experian, and TransUnion. This can be done in real time via the credit bureaus’ mobile apps or websites.

According to experts, locks are one of the most convenient ways to secure your credit from fraudsters trying to open new accounts. With just a few taps, you can prevent lenders from accessing your credit information.

You can instantly unlock your credit when needed—like when applying for a mortgage or auto loan—and then quickly lock it again after the credit check is run.

This on-demand locking makes applying for credit easy while also keeping your reports protected.

How Credit Locks Prevent Fraud

By locking your credit reports, lenders cannot check your credit history or score when processing applications. Most creditors will automatically deny any applications if they cannot perform a credit check. This makes it extremely difficult for thieves to open fraudulent accounts in your name.

Credit locks essentially create a virtual wall around your credit reports that remains fortified until you unlock it.

According to TransUnion, less than 1% of identity theft victims it studied had placed a credit lock prior to the crime. So locks appear to be highly effective at thwarting fraudsters.

Cost of Credit Locks

The cost of credit lock services varies between the three major credit bureaus:

• Equifax – Equifax‘s lock service is called Lock & Alert and is free for all consumers.

• Experian – Experian’s lock is only available with a paid membership to Experian CreditWorks, which starts at $24.99 per month.

• TransUnion – Like Equifax, TransUnion also provides free credit locks to all as part of its TrueIdentity program.

So Experian is the only bureau that charges for credit lock capabilities. With Equifax and TransUnion, you can get the full identity protection benefits of locks at no cost.

Pros of Credit Locks

• Real-time locking/unlocking – Locks can be toggled on and off instantly via mobile app or online. No waiting for bureaus to process freeze requests.

• Easy application process – Starting a lock is quick and simple through the credit bureaus’ websites or apps.

• Free with Equifax and TransUnion – Two out of three bureaus provide free locks so you can protect all of your credit reports for $0.

• Prevents new account fraud – Locks are effective at stopping identity thieves from opening fraudulent accounts.

Cons of Credit Locks

• Not regulated by law – Unlike credit freezes, locks are not mandated or regulated under federal law.

• Costs money with Experian – You must pay a monthly fee for Experian‘s CreditLock service.

• Security risks – Locks rely solely on username and password for account access. Experts say freeze PIN codes are more secure.

So in summary, credit locks provide an easy and convenient way to instantly restrict access to your credit reports. But the lack of regulatory oversight and potential fees at some bureaus are downsides to consider.

Next, let’s look at how credit freezes work and how they compare.

What is a Credit Freeze?

A credit freeze completely seals off access to your credit reports and scores at Equifax, Experian, and TransUnion. When you freeze your credit, lenders cannot check your credit information at all until you lift the freeze.

Freezes are regulated under federal law, specifically the Fair Credit Reporting Act. This law mandates that credit reporting bureaus cannot charge any fees for freezing (or unfreezing) your credit reports.

Consumers are also guaranteed the following protections:

• Bureaus must place a freeze within one business day of a request
• Bureaus must lift a freeze within one hour of a request
• Bureaus must remove a freeze within one business day of a request

These requirements help ensure prompt processing times for consumers who opt to freeze their credit reports.

How Credit Freezes Prevent Fraud

With a freeze in place, any credit applications are automatically denied since lenders cannot access credit reports. Just like with locks, this effectively stops identity thieves from obtaining credit in your name.

When you need to apply for credit, you must contact each bureau to lift the freeze temporarily. This can be done online, by phone, or by mail.

According to a 2018 Consumer Reports survey, only 4% of identity theft victims had placed a credit freeze prior to the crime. So freezes are highly effective against new account fraud when implemented proactively.

Cost of Credit Freezes

Thanks to federal law, consumers can place credit freezes for free at Equifax, Experian, and TransUnion. The bureaus are not permitted to charge any fees for:

• Placing a freeze
• Temporarily lifting a freeze
• Removing a freeze

This makes freezes an affordable identity protection option for all consumers regardless of income level.

Pros of Credit Freezes

• Federally regulated – Freezes are governed by law under the Fair Credit Reporting Act with strict requirements.

• No cost to consumers – Federal law mandates that credit bureaus cannot charge fees for freeze services.

• Extra security – Unique PIN codes are issued for lifting freezes, preventing unauthorized access.

• Stop new account fraud – Similar to locks, freezes effectively block identity thieves from opening new accounts.

Cons of Credit Freezes

• Slower to activate – Bureaus can take up to 1 business day to process freeze requests.

• Inconvenient lifting process – You must contact each bureau and provide your PIN to lift a freeze.

• Delays when applying for credit – Lifts can take up to an hour, slowing the application process.

In summary, credit freezes provide robust identity protection that’s backed by legal rights and oversight. But the process for freezing/unfreezing your credit can be slower and less convenient compared to credit locks.

Now that you understand the basics of credit locks and freezes, let’s do a side-by-side comparison of some key differences.

Credit Lock vs. Credit Freeze: Key Differences

While locks and freezes both prevent new account identity theft, there are several important distinctions between these two options:

Cost

Credit freezes are free at all three credit bureaus as mandated by federal law. Credit locks are also free from Equifax and TransUnion but cost $24.99+ per month for Experian’s CreditLock plan.

Speed

Credit locks can be activated instantly and lifted in real time via mobile apps and websites. Freezes take up to one business day to set up initially. Lifting freezes requires contacting each bureau by phone, online, or mail and takes up to an hour.

Legal Protections

Freezes are regulated by the Fair Credit Reporting Act, which provides consumer rights and governs credit bureau responsibilities. Locks are services offered voluntarily by the credit bureaus without legal oversight.

Security

With credit freezes, each bureau issues a unique PIN code that must be provided to lift the freeze. This adds an extra layer of security beyond username and password. Locks rely solely on login credentials for account access.

Convenience

Locks offer greater convenience, especially for those who apply for new credit regularly. Freezes can be cumbersome to lift repeatedly when applying for credit cards, loans, etc.

So in evaluating credit lock vs. credit freeze, the main trade-off is convenience vs. mandated protections and potential cost savings. Depending on your personal situation, one option may be better suited for your needs.

Later in this guide, we’ll provide tips for choosing between a credit lock or freeze. But first, let’s walk through the step-by-step process for placing both.

How to Place a Credit Freeze

Placing a credit freeze is a quick process that can be done over the phone or online:

By Phone

Call each credit bureau‘s freeze department and provide your personal information. Make sure to record the unique PIN code provided for lifting the freeze.

• Equifax – 1-800-685-1111

• Experian – 1-888-397-3742

• TransUnion – 1-888-909-8872

Online

You can also place a credit freeze online by creating an account at each bureau’s website and logging in:

• Equifax Freeze Page

• Experian Freeze Page

• TransUnion Freeze Page

Provide your personal info and the credit bureau will provide a PIN code to lift the freeze.

Once confirmed, the freeze takes effect within 24 hours. You can manage it directly on each bureau’s site going forward.

How to Temporarily Lift a Credit Freeze

When you need to apply for credit with a freeze in place, you’ll have to contact each bureau to lift it temporarily:

Online

Logging into your credit bureau account is the fastest way to lift a freeze. Click the “Temporarily lift my freeze” button and enter your PIN code. The freeze must be lifted within one hour.

Phone

Call each bureau’s automated freeze system or live agent. Provide your PIN to lift the freeze, which generally takes 15 minutes.

Mail

Write a letter to each bureau requesting a temporary lift of the freeze and include:

• Your PIN code
• Photocopy of ID
• Duration to lift the freeze

Processing mail requests takes 3-5 business days.

Be sure to note the specific duration you want the freeze lifted, like 24 hours or 3 days. Once the time period expires, the freeze will automatically lock your reports again.

You can also re-freeze immediately after applying for whatever new credit you needed.

How to Place a Credit Lock

Placing a credit lock is quick and simple with the credit bureaus’ mobile apps and websites:

Mobile App

Download the app from each bureau where you want to set up a lock:

• Equifax – Lock & Alert app
• Experian – Experian app
• TransUnion – TrueIdentity app

Once installed, register for an account and you can instantly lock your credit reports.

Online

You can also log into each bureau’s website to start a lock:

• Equifax Lock & Alert
• Experian CreditLock
• TransUnion TrueIdentity

Register your account and click the buttons to instantly lock your Equifax, Experian, and TransUnion credit reports.

Once locked, you can easily unlock your credit right from your account when needed. Relocking also just takes a few seconds.

Should You Choose a Credit Lock or Credit Freeze?

So when it comes to choosing between a credit lock or freeze, which option is right for you? Here are a few key factors to consider:

How often you apply for credit – If you only rarely open new credit accounts, a freeze may be the better choice since you won’t have to hassle with lifting it often. Frequent credit applicants are probably better off with a lock.

Your budget – Due to the fees charged by Experian, locks can cost up to $30 per month for full coverage from all bureaus. Freezes are free as mandated by law.

Importance of federal protections – Laws and regulations provide oversight and consumer rights with freezes. Locks come with fewer guaranteed protections.

Convenience and speed – Locks allow instant locking/unlocking as needed. Freezes can take over a day for activation and an hour for lifts.

Analyze your specific credit habits, concerns, and budget to decide if a freeze or lock is the optimal choice for your needs right now. And you can always switch between the two as your situation evolves.

For example, a credit freeze may make sense when money is tight and you rarely apply for new credit. Down the road when you need to open more accounts, switching to a lock for added convenience may be the best approach.

Either way, protecting your credit reports is essential to prevent the nightmare of identity theft. Both options provide robust defenses against new account fraud.

But what about other alternatives beyond just locks and freezes? Next we’ll explore how options like fraud alerts compare.

Fraud Alerts vs. Credit Freezes and Locks

Along with locks and freezes, fraud alerts are another common option for protecting your credit from ID thieves. Here’s an overview of how they work and compare:

Fraud Alerts

When you place a fraud alert, credit bureaus must contact you to verify identity before approving new credit applications. This makes it harder for thieves to open accounts in your name.

You only have to contact one bureau to set up an alert. They are required to notify the other two bureaus on your behalf.

• Initial fraud alert – 1 year of protection.
• Extended fraud alert – 7 years of protection for victims of identity theft.

Fraud alerts are free and provide an extra layer of verification before unknown accounts can be opened. But your credit reports are not totally locked down like with freezes and locks.

Comparing to Locks and Freezes

Fraud alerts add some identity protection, but they are less rigorous than true credit freezes and locks:

• Alerts don’t completely block access to your reports.

• Lenders can still potentially approve fraudulent accounts.

• You must be contacted first, but not guaranteed denial of unauthorized applications.

Freezes and locks both seal off your reports from unapproved access. So new accounts cannot be opened since lenders are unable to check your credit history at all.

If you’re concerned about identity theft and want to fully lock down your credit reports, a freeze or lock is more effective than a fraud alert. Use alerts as an extra layer of defense in tandem with locks/freezes if desired.

The Bottom Line

Identity theft and credit fraud instances are steadily rising year over year. But the good news is you have options like credit freezes and credit locks to secure your credit reports and personal information.

While locks and freezes work in slightly different ways, both serve the same purpose of preventing thieves from illegally accessing your credit history to open fraudulent accounts.

Carefully considering your specific needs and habits will ensure you choose the ideal option to protect your identity. Strengthen your defenses with a freeze or a lock and gain peace of mind knowing your credit will be safe from scammers.