While many of you may know the difference between a credit lock and a credit freeze, I did not. However, I kept hearing that it would be a good idea. So, if you find yourself in the same boat as me, please utilize the definitions and recommendations I discovered below.
Starting with the basics, both a credit lock and a credit freeze restrict lenders and creditors from accessing your credit report (and credit score). Additionally, it prevents new lines of credit (credit card, loan, etc.) from being opened in your name.
More specifically, a credit lock can be activated and deactivated in minutes via a mobile app. This is appealing to individuals who frequently apply for new lines of credit. With this option, there is typically a monthly fee.
In contrast, a credit freeze can take anywhere from an hour to 3 business days to place or remove. However, freezing your credit is completely free and federally protected by law.
Each credit tool has its recommended uses. While both options work to protect your identity, it’s important to consider your overall credit usage and future credit needs when deciding which option is best for you.
Please reach out if you would like to discuss with us further!