What's a credit freeze?

A credit freeze, also known as a security freeze, is a free tool that restricts access to your credit report.

When your report is frozen, potential lenders—like banks or credit card companies—cannot see your credit file. This makes it extremely difficult for identity thieves to open new accounts in your name, because most lenders will not approve a new application if they cannot check the applicant's credit history.

Here are a few key points:

• How it works: You must contact each of the three major credit bureaus (Equifax, Experian, and TransUnion) individually to place a freeze.
• Impact on your credit: It does not affect your credit score, and it does not stop you from using your existing credit cards or loans.
• Accessing credit: If you want to apply for new credit yourself, you can "thaw" or lift the freeze temporarily using a PIN or password you create when you set it up.
• Cost: By federal law, placing and removing a credit freeze is free of charge.

If you are considering one, you can visit the official websites of the three major credit bureaus to set it up. Each bureau is required to provide a clear, easy way to manage a freeze online.