At a glance

Credit freezes, fraud alerts, and identity (or credit) locks are related but distinct tools that help prevent identity thieves from opening new credit accounts in your name. Each has different legal status, costs, and practical limits. Knowing how they work—and when to use each—lets you choose the right protection for your situation.

How each protection works

  • Credit freeze: A statutory tool under the Fair Credit Reporting Act (FCRA) that consumers can place with each major credit bureau (Equifax, Experian, TransUnion). A freeze prevents most creditors from accessing your credit report for new credit decisions unless you temporarily lift (thaw) the freeze. Freezes are free under federal law (see FTC and CFPB links below).

  • Fraud alert: An instruction placed on your credit file that asks potential creditors to take extra steps to verify your identity before opening new accounts. An initial fraud alert lasts one year; victims of identity theft can obtain an extended fraud alert that lasts seven years. Fraud alerts do not block access to the report; they only require verification steps.

  • Identity (credit) lock: A commercial feature offered by credit bureaus or third-party services that lets you lock and unlock access quickly via a mobile app or website. Locks are typically contractual (not statutory) and may be bundled with monitoring services or subscription plans; they can be free in some cases but are not governed by the same federal rules as freezes.

(Authoritative references: FTC, CFPB, IdentityTheft.gov.)

Key differences summarized

  • Legal standing: Credit freezes and fraud alerts are governed by federal law (FCRA). Identity locks are contractual features and vary by provider.
  • Cost: Freezes and fraud alerts are free. Locks may be free or part of a paid service.
  • Speed/convenience: Locks often let you lock/unlock instantly via an app. Freezes can also be lifted quickly online, but the rules vary by bureau for authentication and response times.
  • Coverage: Freezes typically block new-credit inquiries from most creditors; fraud alerts only prompt extra verification; locks depend on the vendor’s reach and how lenders respond.

Who should use each tool

  • Credit freeze: Anyone worried about new-account identity theft—especially identity-theft victims, people with lost or stolen IDs, and those who don’t intend to open new credit soon. In my practice, I recommend freezes for clients after confirmed information theft because freezes provide the broadest legal protection.

  • Fraud alert: Someone who suspects suspicious activity but is still applying for credit in the near term. Because fraud alerts require verification rather than blocking access, they’re less disruptive during loan or job-application processes.

  • Identity lock: Users who want rapid, app-based control and bundled monitoring. Locks are convenient for frequent travelers or people who like one-touch control; however, I caution clients that locks don’t carry the same statutory protections as freezes.

Practical steps: place, lift, or remove each

  1. Credit freeze
  • Contact Equifax, Experian, and TransUnion separately (online, phone, or mail). Provide required identity documents. Each bureau provides an account PIN or password for thawing. (See bureau sites and the FTC guide.)
  • If you need to apply for credit, temporarily lift the freeze for a specific creditor or time window, or give the thaw PIN to the lender.
  1. Fraud alert
  • Place an initial fraud alert through any one of the three major bureaus. That bureau will notify the others. If you’re a confirmed identity-theft victim, request an extended alert and provide an identity-theft report.
  1. Identity lock
  • Sign up with the provider (credit bureau or third party). Use the app or web dashboard to lock/unlock. Review the provider’s terms—some locks are tied to subscription fees and data-sharing policies.

(For exact bureau addresses and web links, consult the FTC and CFPB pages and the individual bureau websites.)

Common myths and important facts

  • Myth: A freeze hurts my credit score. Fact: A credit freeze does not affect your credit score because it only controls who can view your report, not the contents or your payment history.

  • Myth: A fraud alert stops all fraud. Fact: Fraud alerts prompt extra verification but don’t prevent accounts from being opened if a creditor skips the extra steps.

  • Fact: Freezes and fraud alerts are free for consumers under federal law. Locks may cost money and are not a legal substitute for a freeze.

(See FTC: https://www.ftc.gov and CFPB guidance: https://www.consumerfinance.gov/.)

Exceptions and things to watch for

  • Existing creditors, debt collectors, and certain background checks (like some employment screenings) may still access your report even with a freeze.
  • Mortgage, student loan, or rental applications may require a thaw before the lender or landlord can pull your report—plan ahead when applying for major loans.
  • A fraud alert placed for active-duty military members (or other special cases) has specific durations—check current CFPB guidance for details.

Costs and timing (2025 context)

  • Credit freeze: Free nationwide. Duration: until you remove it. Bureau processes and online thaw times may vary—expect to be able to lift a freeze quickly when you can confirm your identity.
  • Initial fraud alert: Free; 1-year duration.
  • Extended fraud alert: Free; 7-year duration for confirmed identity-theft victims.
  • Identity locks: May be free or require subscription; read terms to confirm whether the lock is sold with monitoring and what recovery assistance is included.

(Official sources: Federal Trade Commission, Consumer Financial Protection Bureau, IdentityTheft.gov.)

How I use these tools with clients (professional insight)

In my 15+ years advising clients, I’ve found the following approach effective:

  • Immediately place a credit freeze for clients with confirmed identity theft. It buys time while we dispute fraudulent accounts.
  • Use an extended fraud alert to add an extra verification layer when credit restoration is in progress.
  • Add a commercial lock and monitoring service when clients want fast control and bundled identity-recovery help—but only after reviewing the provider’s privacy and recovery terms.

This layered approach balances legal protections and day-to-day convenience.

Quick checklist before you freeze or lock

  • Do you need credit in the next 30–90 days? If yes, consider a fraud alert or plan how to temporarily lift the freeze.
  • Have you updated your contact details with the bureaus so you can receive PINs and alerts?
  • Keep copies of identity-theft reports and dispute letters if you’re a victim.
  • Use AnnualCreditReport.com to review your full reports at least once per year (free reports) and spot suspicious accounts early. (AnnualCreditReport.com)

Useful internal guides on finhelp.io

Frequently asked questions

Q: Will placing a freeze stop identity thieves from using my credit cards?
A: No. A freeze mainly prevents new-credit accounts. It won’t stop existing accounts or fraudulent charges on cards you already have—monitor account activity and dispute unauthorized charges with the issuer.

Q: Can I apply for a job or rent an apartment with a freeze in place?
A: Some background checks and landlords may request access to your credit. You can temporarily lift the freeze for a specific party or time window.

Q: What documents are needed to place a freeze or fraud alert?
A: Typical documents include a government ID, proof of address, and possibly a police report or identity-theft affidavit for extended alerts.

Sources and further reading

Professional disclaimer

This article is educational and not personalized financial or legal advice. For guidance tailored to your situation—especially after theft—consult a consumer-law attorney or a qualified financial advisor.