Should you freeze your credit? Here's how to do it right

Online Safety
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Colored pencil illustration of a padlock placed on a folder on a wooden desk, representing a credit freeze

Summary:

  • A credit freeze is one of the most effective ways to prevent someone from opening a new line of credit in your name

  • It's free, and you can lift it temporarily whenever you need to apply for credit

  • You have to set it up separately at all three credit bureaus: Experian, Equifax, and TransUnion

  • Experian now supports passkeys, which makes signing in easier, though all three bureaus still require SMS verification, so keep your phone number current

  • Don't lose your account credentials; recovering access to these accounts is harder than with most websites

One small but effective way to protect yourself is with a credit freeze, which is something I recommend to everyone. Why? Consider how many data breaches have exposed Social Security numbers. The US has about 258 million adults, and here are just a few of the biggest breaches:

  • Equifax, 2017: 148 million

  • Capital One, 2019: 106 million records exposed (though only about 140,000 Social Security numbers were actually in that batch)

  • Anthem, 2015: 79 million

  • Experian, 2015: 15 million T-Mobile customers

  • Office of Personnel Management, 2015: 22 million (I include this one because many of my clients are or have been federal employees, given my work in the DC area)

  • National Public Data, 2024: an estimated 2.9 billion records, potentially including Social Security numbers for most Americans

Yes, I realize the irony of signing up for an account with Experian and Equifax, considering that they are among the largest offenders on this list. But you already have a file with them anyway, so this is giving yourself more control over the data they already hold.

What is a credit freeze?

A credit freeze is a very effective way of preventing a specific kind of fraud. It means that no one can open a line of credit in your name, a very common form of identity theft. When you do need to apply for credit, you will need to visit all three credit bureau websites to temporarily lift the freeze. But considering how many of us have our Social Security numbers and other personal information on the dark web, this small inconvenience is nothing compared to dealing with identity theft.

As you may know, there are three major credit bureaus. Any time you apply for a new line of credit, at least one of these companies is likely to be consulted. Placing a credit freeze blocks any "hard inquiry" of your credit, preventing anyone from opening a new account in your name.

  • Hard inquiry: These are what credit freezes prevent, and what lenders use when you apply for a new line of credit.

  • Soft inquiry: Credit freezes do not affect these. This is when you check your own credit, when a bank wants to pre-approve a loan, or when an existing lender reviews your account. Soft inquiries do not affect your credit score at all. You can check your own credit every day if you want.

What do I need to be aware of before I freeze my credit?

There are a few things worth knowing before you get started.

  • Any time you need to apply for a new line of credit, you will need to temporarily "lift" the freeze. It's not difficult, but it's something you have to remember to do, or your application will be denied and you'll need to resubmit. The lender will not see "bad" credit; they will get an error message. They may or may not know the reason, so you'll need to remember that an error could be caused by a freeze.

  • Experian now supports passkeys, which makes signing in easier. A passkey lets you log in using Face ID, Touch ID, or your device PIN, and it's stored in iCloud Keychain or your password manager. That said, Experian still requires SMS verification as part of its process, so keeping your phone number up to date in your account matters. All three bureaus rely on SMS in some form, meaning that if you change your phone number and forget to update it, getting back in can be a real hassle.

  • Do not lose your passwords and account credentials. If you aren't already using a password manager (iCloud Keychain works well for most people; 1Password is another excellent option), write your login information down and store it wherever you keep your birth certificate. Recovering access to these accounts is not as straightforward as it is with most other websites.

  • Credit freezes have been free in the US since 2018. When you sign in, the bureaus may try to upsell you to a paid credit monitoring service. Look for the "later" or "keep my current plan" button and move on.

Download my Credit Freeze Lifting Cheat Sheet

To make the process of unfreezing your credit easier, I have created a Credit Freeze Lifting Cheat Sheet. Print it out, handwrite your personal information as you set up your freezes, and keep it somewhere secure, like with your birth certificate.

How do I freeze my credit?

This is not a one-stop process. You have to repeat it at each credit bureau, and the process is slightly different at each one.

Visit each of the following websites and follow the prompts for a credit freeze. You will be asked to create a password, verify your phone number, and may be asked some financial questions to verify your identity. Use a strong, unique password for each one, as standard or reused passwords are often already on the dark web.

How and why do I unfreeze my credit?

Any time you fill out an application that requires a credit check (a new credit card, loan, lease, or utility service), you will need to temporarily lift your credit freeze at all three bureaus. You do not need to do this when checking your own credit. You only need to unfreeze when applying for a new account.

For each bureau, follow the same links above and sign in. Look for something like "Lift credit freeze," "unfreeze," or "thaw." If you use the cheat sheet printout above, specific instructions are included, though they may change if the sites are updated. Each site will ask for a date range for the unfreeze. If you choose today as your start date, your credit will be unfrozen within an hour (that's the legal requirement, though in my experience it's usually within seconds). Your credit re-freezes at the end of the last day you set.

What about a fraud alert?

When signed into your credit bureau account, you may see an option for a Fraud Alert. It sounds like a lighter-touch alternative to a freeze, but in practice it may actually be more work. Rather than blocking credit applications outright, it flags your file so that lenders must take extra steps to verify your identity before approving anything. That verification process can take extra time, and in some cases may involve postal mail. Lifting a freeze, by contrast, is something you can do online in seconds. So unless you have a specific reason to prefer a fraud alert, a freeze is usually the more practical choice.

One difference worth knowing: a credit freeze must be set up at each bureau separately, but a Fraud Alert only has to be enabled at one bureau, and they share the information with the others. Fraud Alerts also expire after one year (or seven years if you file a theft report with law enforcement).

Additional links

Key takeaways

  • Freeze your credit at all three bureaus: Experian, Equifax, and TransUnion

  • Set up a passkey on Experian while you're at it; it makes future logins easier — though note that all three bureaus still require SMS verification, so keep your phone number current in each account

  • Print out the Credit Freeze Lifting Cheat Sheet and store it somewhere safe

  • Use a unique, strong password at each bureau (not a variation of anything you use elsewhere)

  • Remember to lift your freeze before applying for any new line of credit

  • If you'd like help walking through this step by step, I offer one-on-one sessions in San Francisco, Washington DC, and via Zoom. Book a session here.

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