A growing number of Americans are taking proactive steps to safeguard their financial health – including making use of a credit freeze. This simple step is a security measure designed to help you take control of who can access your credit information and when.

But when is it a good idea to use a credit freeze, and what impact does it have on your daily life? Here's everything you need to know about credit freezes and when they happen.

Definition of a Credit Freeze

A credit freeze, also known as a security freeze, is a tool that allows you to block access to your credit files. When you place a freeze on your credit report, lenders and other third parties can't pull your credit file to assess whether you qualify for a new credit account.

Since most creditors won't approve a credit application without access to your report, this effectively prevents anyone, including fraudsters, from opening new accounts in your name.

Despite locking down your accounts, a credit freeze doesn't affect your credit scores, and it doesn't impact your ability to use your current credit accounts. You can still buy things, pay your bills and manage your existing accounts. A credit freeze also won't stop you from getting prescreened credit offers, but you can opt out of those separately.

How a Credit Freeze Works?

Asking for a credit freeze is a simple process. Here’s how it works:

Initiating a Credit Freeze

To freeze your credit, you need to contact each of the three credit bureaus — Equifax, Experian and TransUnion. Each credit bureau offers a secure website, a toll-free number and a mailing address you can use to request a freeze. You’ll have to provide identifying details including your name, address, date of birth and Social Security number, and you may have to create a PIN or password so you can access your freeze settings in the future.

A key federal law passed in 2018 requires the three major credit reporting agencies to make a credit freeze available to you at no charge. And once you place a freeze on your accounts, credit reporting companies must process your request within one business day if you submit by phone or through their website, and they’re required to process mail-in requests within three business days.

Temporary vs. Permanent Freezes

A credit freeze restricts access to your credit report until you remove it. But you have the option to temporarily lift the freeze when you need to apply for credit, rent an apartment or do anything else that requires a credit check. You can also schedule a temporary lift in advance through your online account, and you can choose how long the lift should stay in place before freeze status automatically resumes. This makes it easy to manage access to your credit without completely removing the freeze.

Impact on Credit Inquiries

With a frozen credit report, new creditors and most third parties that need a credit check (e.g., for new credit, tenancy, utilities, some insurance/employment screens) generally can’t access your report unless you temporarily lift the freeze. Organizations where you already have an account, debt collectors acting on their behalf, and government entities with a lawful purpose may still access certain information. Freezing your credit doesn’t prevent you from checking your own report or getting your free annual reports.

Purpose of a Credit Freeze

There are several reasons you might want to place a credit freeze on your account. Here are some of the most common.

Preventing Identity Theft

One important reason for a credit freeze is to prevent identity theft. By cutting off access to your credit reports, you make it much more difficult for someone to commit fraud by impersonating you and opening new credit accounts in your name.

For example, if your personal information has been exposed in a data breach, a credit freeze adds an extra layer of protection to stop criminals from doing damage to your financial health.

Safeguarding Personal Information

When you freeze your credit, you’re also helping safeguard personal information, including sensitive data like your Social Security number, birth date and address. A credit freeze makes this information less valuable to identity thieves because it blocks unauthorized access to your credit report. And without access to your credit files, most lenders won’t approve a new credit account – so it’s much less likely that someone can use your information to commit fraud.

Controlling Access to Credit Reports

One of the biggest pros of a credit freeze is that it gives you full control over who can access your credit files. This control is especially useful during periods when you're not actively applying for new credit accounts – like when you’re between major purchases or focusing on debt repayment.

When to Consider a Credit Freeze?

While you can request a credit freeze at any time, there are a few specific instances that make a credit freeze a smart move. Here are some examples you should keep in mind:

After Identity Theft Incidents

If you've been a victim of identity theft, financial experts recommend immediately putting a freeze on your credit accounts. Once someone has fraudulently used your personal information, stopping continued unauthorized access to your credit is critical. A freeze, combined with a fraud alert and an FTC identity theft report, can prevent fraudsters from continuing to misuse your identity.

Following Data Breaches

Data breaches are an unfortunate reality in today's digital world, and they affect millions of consumers every year. If you get notice that your personal information was compromised – like your Social Security number or passwords to your online accounts – requesting a credit freeze can give you peace of mind. Even if you haven't been a victim of fraud, freezing your credit can stop a criminal from using your stolen information in the future.

Proactively as a Preventive Measure

You don’t have to wait for a crisis to freeze your credit report. Many consumers, especially seniors and parents, may choose to use credit freezes as a proactive strategy. For example, parents can request a freeze for a minor's credit report to protect children from identity theft. In fact, any protected consumers, including minors or adults with legal guardians, have the right to have a credit freeze placed on their behalf.

How to Place a Credit Freeze?

Placing a credit freeze on your accounts is a quick and simple process – here’s what it takes.

Contacting Credit Reporting Agencies

To request a credit freeze, the first thing you need to do is reach out to each of the three credit bureaus:

  • Equifax: (800) 685-1111 or Equifax Freeze Center

  • Experian: (888) 397-3742 or Experian Freeze Center

  • TransUnion: (888) 909-8872 or TransUnion Freeze Center

Online vs. Phone vs. Mail Requests

You can freeze your credit file online, by phone or through the mail. Online and phone requests are processed the fastest – often within minutes. Mail requests, on the other hand, may take several business days to confirm. Once your request is complete, each credit bureau will send you written confirmation of your freeze status, along with instructions for how to lift a security freeze.

Necessary Information and Documentation

When submitting a credit freeze request, be prepared to provide your full legal name, address history, Social Security number and date of birth. For protected consumers, guardians or parents may be asked to submit legal documents like a birth certificate or court order proving their authority to act on the consumer’s behalf.

Effects of a Credit Freeze

Once activated, you’ll see immediate credit freeze effects, including the following:

Limiting Access to Credit Reports

The most immediate effect of a credit freeze is that it limits who can view your credit files. Any company deciding whether to extend credit to you – for example, for a mortgage, car loan or even credit account upgrades – won't be able to access your data. This means any new credit applications you submit will be blocked unless you temporarily lift the freeze.

Impact on Credit Applications

Because only you can access your frozen credit report, any attempt you make to apply for a loan, credit card, rental property or even some types of insurance may be delayed or denied. To move forward, you'll need to temporarily lift your credit freeze. You can do this for a specific timeframe or for a particular business that needs access to your credit file.

Lifting or Thawing a Credit Freeze

If you need to unfreeze your credit, you can do that either online or by phone, and the lift usually takes effect within about an hour. If you’d rather make your request by mail, the credit bureau must lift your credit freeze within three business days of receiving your request. You may also choose to lift the security freeze temporarily or permanently, depending on your situation.

Alternatives to Credit Freezes

If you’re not ready to request a credit freeze on your accounts, you have some other alternatives to help you protect your financial health. Here are just a few:

Fraud Alerts

A fraud alert doesn't block access to your credit report – but it does require lenders to verify your identity before they can issue credit. An initial fraud alert lasts for one year and can be renewed on a yearly basis. An extended fraud alert lasts for seven years and is available to people who have been identity theft victims and submitted an FTC identity theft report.

There’s also an option called an active duty fraud alert; it’s available to service members on active military duty. This alert functions just like other alerts, but it lasts for one year and helps protect against unauthorized credit activity while you're deployed.

Credit Monitoring Services

A credit monitoring service watches for changes in your credit profile, such as new inquiries, account in your name or changes to your score. Some services are free, while others are paid and often bundled with credit locks, identity theft tools and insurance.

Some credit cards, like the Juzt Credit Card, also offer features that complement your monitoring strategy. With a user-friendly mobile app, real-time account access and monthly reporting to Equifax, Juzt may help support your credit-building journey alongside your efforts to monitor and protect your credit health.

Identity Theft Insurance

Identity theft insurance provides financial assistance if you're a victim of identity theft, helping cover costs like legal fees, lost wages, and mailing expenses. It’s often offered alongside other personal finance protection services, and some employers may offer identity theft insurance as part of their workplace benefits.

How Long Should a Credit Freeze Last?

The length of your credit freeze is up to you and can be tailored to your situation. Here are the major points to consider when deciding how long your credit freeze should stay active:

Temporary vs. Indefinite Freezes

It’s important to note that your credit freeze status stays active until you decide to remove it. There’s no expiration date, unlike fraud alerts. However, temporary lifts can be useful when you’re applying for a new account or switching utility bills, without fully removing the freeze.
If you're temporarily lifting your credit freeze to open a new account, you'd be smart to consider credit-building products that report to major bureaus. For example, the Juzt Credit Card offers a no-deposit, unsecured line of credit with monthly reporting to Equifax. Responsible use may help support credit-building over time.

Factors Influencing Duration

Your credit freeze’s duration mostly depends on your financial habits and your risk tolerance. If you’re actively applying for credit, an ongoing freeze may not be practical. But if you’re not opening new credit accounts, leaving your report indefinitely frozen can be a smart security measure.

Lifting a Freeze Permanently

When you’re ready, you can permanently unfreeze your credit. All you have to do is visit each credit reporting company’s website or call their toll-free number to ask for the change. You’ll be required to verify your identity, and you can usually wrap up the full process within an hour.

Considerations Before and After Placing a Credit Freeze

Requesting a freeze on your credit accounts is an important step – and one you should thoughtfully consider before acting.

Weighing the Pros and Cons

While a credit freeze makes it much harder for criminals to open new accounts in your name, it also adds a layer of complexity to your financial routine. You’ll need to plan for any new applications and credit-based services you’d like to pursue. But – for many consumers, the security and peace of mind they get with a credit freeze outweigh any inconvenience.

Monitoring Credit Reports During a Freeze

Even with frozen credit reports, it’s important to stay vigilant about checking your financial health. You should regularly review your bank statements, credit activity and reports from other credit reporting agencies to look for suspicious behavior. You can also visit annualcreditreport.com to access your credit reports for free.

Updating Personal Information

If your address, legal name or contact information changes, make sure to update it with each credit bureau. This makes sure you keep access to your credit freeze online and helps avoid delays when lifting or adjusting your credit freeze.

In today’s highly connected world, taking steps to protect your financial identity is more important than ever. A credit freeze offers one of the most effective and reliable ways to safeguard your credit information from unauthorized use.

Whether you’re responding to identity theft, concerned about a data breach, or just want to take control of your credit access, freezing your credit empowers you. It’s free, flexible and widely supported by the three major credit bureaus. As with any financial tool, staying informed and monitoring your credit helps make sure you’re always one step ahead protecting not only your identity, but also your peace of mind.

Disclaimer: This article is for educational purposes only and doesn’t guarantee fraud prevention, approval, or specific outcomes. Processes and timelines may vary by credit bureau and circumstance. A credit freeze helps prevent new-account fraud; continue to monitor existing accounts for unauthorized activity.