In 2024, Ticketmaster announced it was the victim of a data breach that potentially compromised more than half a million customers. Among the expert advice to the individuals affected: Freeze your credit.
A credit freeze is a powerful tool that can help protect you from identity theft and fraud. In simple terms, it's like putting a lock on your credit report. When your credit is frozen, no one can open new accounts in your name, nor can lenders and creditors access your credit history without your permission. But how long does a security freeze last?
In this article, we'll answer this and other common questions about credit freezes— including what exactly a credit freeze is, how long do credit freezes last, and what the downsides might be. We'll also cover the steps involved in freezing and unfreezing your credit.
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What is a credit freeze?
A credit freeze, sometimes called a security freeze, is a feature that allows you to restrict access to your credit report. Its primary purpose is to protect your personal information and prevent fraudulent activity.
When you freeze your credit, you make it nearly impossible for new creditors to view your credit history—a necessary step to approve new lines of credit—which can prevent identity thieves from opening new accounts in your name. In situations where your personal data might have been illegally accessed—and is now potentially compromised—it can be a crucial security measure.
“It's important to note that freezing your credit does not directly impact your credit score or the information in your credit report,” says Dennis Shirshikov, a finance professor at the City University of New York. “It also doesn’t affect your existing accounts, and you can still use your credit cards and pay your bills as usual.”
Another positive aspect is that freezing your credit won’t cost you anything. “Freezing and unfreezing credit is free across all major credit bureaus—Equifax, Experian, and TransUnion,” he adds. “This was not always the case, but changes in regulations have made it easier and more cost-effective for consumers to protect their credit.”
How long does a credit freeze last?
The duration of a credit freeze is essentially up to you. You can keep it in place for as long as you want, or set it for a specific period if you only need it temporarily. This makes it a handy option for protecting your credit report, whether you’re looking for short-term security or something more long-term.
Temporary vs permanent freezes
- Temporary freeze: You can set a credit freeze for a specific period, such as a few days, weeks, or months. This can be useful if you’re planning to apply for a loan or credit card soon after freezing your credit. It lets you limit the freeze's duration to avoid complications during the application process.
- Permanent freeze: A permanent credit freeze remains in place indefinitely until you actively choose to lift it. This is a good option for those who don’t anticipate needing to apply for new credit in the near future and want to keep a high level of security.
One thing to keep in mind: If you keep a permanent freeze in place for too long, you might forget your credit is frozen. This can lead to frustration if you’re unexpectedly denied new credit.
When freezing your credit might be a good idea
Deciding when to freeze or unfreeze your credit depends on your financial situation and needs. Here’s a closer look at when a credit freeze can be helpful and when you may need to lift it.
When you should consider freezing your credit
- After a data breach or exposure: The Ticketmaster data breach is by no means an anomaly—Verizon’s 2024 Data Breach Investigation Report found more than 10,000 data breaches across 94 different countries. “People typically choose to freeze their credit to protect themselves from identity theft or fraud, especially after a data breach where their personal information may have been exposed,” Shirshikov says. “A credit freeze restricts access to your credit report, making it more difficult for fraudsters to open new accounts in your name.”
- For ongoing financial security: Freezing your credit can be a proactive measure to enhance your overall financial security. If you’re not planning to apply for new credit soon and want to ensure your financial information is protected from potential threats, a credit freeze adds an extra layer of protection.
- For peace of mind for infrequent credit users: If you rarely apply for new credit cards, loans, or other financial products, freezing your credit can provide peace of mind with minimal inconvenience. You won't need to worry about someone else accessing your credit without your knowledge.
It's worth noting that if you need access to your common banking services, a credit freeze won’t affect you. “Your existing accounts, like credit cards and bank accounts, remain fully functional, and you can still use them as you normally would,” Shirshikov says.
When you might need to unfreeze your credit
- Applying for a loan or mortgage: If you're looking to buy a home or take out a loan, you’ll need to temporarily lift the freeze. Lenders will require access to your credit report to assess your creditworthiness.
- Applying for a job: Some employers check credit reports as part of their hiring process, especially for positions that involve financial responsibilities. If you're job hunting, you might need to unfreeze your credit.
- Opening a new credit card or bank account: “If you need to apply for a credit card, you’ll also need to temporarily lift the freeze, which can be done online or over the phone,” Shirshikov says.
- Moving to a new home: Some landlords check credit reports as part of their rental application process. In such cases, you may need to unfreeze your credit to allow them access.
If you frequently apply for new credit or loans, repeatedly lifting and reinstating the freeze can be a hassle. “Each time you want to lift the freeze, you’ll need to go through the process with each credit bureau, which can delay your ability to secure new credit quickly,” Shirshikov says.
Another disadvantage is if you need to unfreeze your credit quickly, any delays in the process can be frustrating—especially in situations where timing is critical, such as closing on a home or securing a loan offer.
Freezing and unfreezing your credit
Here’s a step-by-step guide on how to freeze and unfreeze your credit with all three major credit bureaus.
How to freeze your credit:
- Gather necessary information: You'll need your full name, date of birth, Social Security number, and address. You may also need a copy of a government-issued ID (driver’s license, state ID, etc.) and proof of address, such as a utility bill or bank statement.
- Contact the credit bureaus: Visit Equifax, Experian, and TransUnion websites or call their customer service numbers.
- Submit a freeze request: Follow the instructions provided by each credit bureau to initiate the freeze. You may need to provide additional information.
- Confirm the freeze: After submitting your request, you should receive confirmation from the credit bureau.
Ensure all the information you provide is accurate and up-to-date to avoid delays or issues with your credit freeze. After placing the freeze, you should receive a confirmation email or letter from each credit bureau. Keep these for your records. And even with a freeze in place, it’s a good practice to monitor your credit regularly to ensure no unauthorized activity happens.
How to lift or temporarily unfreeze your credit:
- Temporary unfreeze: To temporarily unfreeze your credit for a specific purpose (e.g., applying for a loan), contact the credit bureau and provide the necessary information.
- Permanent unfreeze: If you no longer need the credit freeze, you can permanently remove it by contacting the credit bureau.
You may be asked to provide your full name, Social Security number, date of birth, address, and any reference numbers or codes you received when you initially froze your credit. Lifting a credit freeze can typically be done within minutes to a few hours.
What's the difference between a credit lock and freeze?
When it comes to protecting your credit, both a credit freeze and a credit lock are tools designed to help you safeguard your credit report from unauthorized access. While they may seem similar, there are key differences that can impact which option is best suited for your needs.
A credit freeze places a strict barrier on your credit report, preventing access to your credit information by potential creditors. It offers the highest level of protection against unauthorized credit activity and can temporarily limit your ability to obtain new credit, even for legitimate purposes.
A credit lock, on the other hand, is a less restrictive measure that restricts access to your credit report but allows authorized users to view it. It offers some level of protection while allowing for more flexibility in accessing credit, but may not provide the same level of security as a credit freeze.
They are both offered as part of the bureau’s services, which means your protection depends on the terms and conditions of the service rather than federal law.
FAQs
How do I freeze my credit on all three bureaus?
To freeze your credit on all three major credit bureaus—Equifax, Experian, and TransUnion—you'll need to contact each bureau separately. You can do this online, over the phone, or by mail. For each bureau, you'll need to provide personal information such as your name, Social Security number, date of birth, and address.
How do I remove a freeze on my credit report?
To remove a freeze on your credit report, you'll need to contact each of the three major credit bureaus online, over the phone, or by mail, depending on your preference, and provide the personal information required to verify your identity. The process usually takes a few minutes online or over the phone, and the freeze can be lifted immediately in most cases.
Does a credit freeze affect a bank account?
No, a credit freeze does not affect your bank accounts or your ability to use them; it only restricts access to your credit report. This means that while it prevents new creditors from viewing your credit file and opening new accounts in your name, it doesn’t interfere with existing accounts or your day-to-day banking activities. You can still deposit and withdraw money, write checks, and use your debit card and any other banking services.
Why is my credit frozen if I didn't freeze it?
If you find your credit is frozen but you didn’t initiate a freeze, it could be due to several reasons. One possibility is that a credit freeze was put in place by someone else, such as a spouse or parent if they have access to your personal information and are concerned about fraud or identity theft.
Another possibility is that the freeze was put in place due to fraudulent activity, either as a precaution by a credit bureau or because someone tried to open an account in your name and triggered a fraud alert.
Additionally, some states have laws that automatically freeze the credit of minors to prevent identity theft. If you suspect your credit is frozen without your consent, contact each of the three major credit bureaus to verify the freeze and get instructions on how to lift it.