Friday, June 28, 2019

Credit Report: Lock/Unlock, Freeze/Unfreeze



Freeze vs Lock ?

Both methods are ways to protect access to your credit reports from being used to open new accounts, but they are not fundamentally the same.

Differences:
  • It is easier/simpler to unlock a credit lock vs unfreeze a credit freeze, BUT a freeze may afford legal protections that a lock doesn't.
When you freeze your credit at the 3 credit bureaus:
  • You restrict access to your credit reports so most lenders can 't see your information until you unfreeze it
  • Since a creditor is unlikely to open a new account in your name without checking your credit, that protects you from fraudulent accounts.
  • Unfreezing your report requires the use of a password-protected account or PIN
Similarly, when you lock your account:
  • You restrict most lenders to access your reports.
  • But you can unlock your credit report immediately at any time, on your computer or mobile device, when you do want to allow access.

Credit freezeCredit lock


When to you use a Freeze ?

  • To protect access to your credit report.
  • It's the smart option if you have been a victim of identity theft or believe your information has been compromised (Equifax breach anyone?).
  • Federal law requires credit bureaus to offer free credit freezes and unfreezes.
  • You can unfreeze your credit report by granting authorization to each of the credit bureaus to do so, via a password protected account or PIN.
  • Freezing your credit report at all the 3 agencies is needed for fully protecting your information.
  • You can still access your credit records and scores under a credit freeze. 

When to use a Lock ?

  • Use it as a preventive measure to protect your information, or when your information has been compromised.
  • It's convenience allows you to quickly lock/unlock to give access to potential creditors.
  • Unlike a freeze, locks are not governed by Federal Law. 
  • As with a freeze, a credit lock is most effective if you sign up at all 3 agencies.
You can sign up for a credit lock at each bureau’s website and also access the respective app to lock or unlock your credit report. Each one offers a slightly different version of the credit lock, so check exactly what you’re signing up for.


  • Equifax’s free credit lock product is called Lock & Alert. The company says it will be free for life. The terms of service do not include an arbitration clause or class action lawsuit waiver; that means you don’t sign away your option to sue or join a lawsuit.
  • Experian bundles its credit lock with other services. The least expensive option, IdentityWorks Plus at $9.99 a month, includes a credit lock, identity theft insurance and alerts when information changes on your report at all three bureaus. Its terms of service do include an arbitration clause and class action waiver.
  • TransUnion’s free product, administered under TransUnion’s TrueIdentity brand, offers the lock/unlock option and other features, but the service agreement does include an arbitration clause and class action waiver. It also requires users to agree to receive targeted marketing materials.

Experian

  • https://usa.experian.com/login/#/index?br=exp
    • View Report
    • Lock and Unlock: You can only do so if you subscribe to their Premium Service
    • If your report is locked, you can unlock it with the basic subscription (but you can't lock).
  • ID Notify:
    • View Report
    • Lock and Unlock (as long as you subscribe to the service)
  • https://www.freecreditscore.com
    • View Report
    • FICO Score
  • Freeze Center: https://www.experian.com/freeze/center.html
    • From this site, you can add and/or remove a freeze. The process is done via submitting a form (vs toggling a button) which makes the process not convenient at all, but at least there is a way to "do it online".
NOTE: There is no "free" service to Freeze and Unfreeze your credit access.

Equifax



TransUnion


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