Does Putting a Credit Freeze Hurt Your Credit Score?
Short answer
Putting a credit freeze does not hurt your credit score. A credit freeze restricts access to your credit reports for new credit applications, but it does not affect your existing accounts or your credit history. Because credit scores are calculated from your credit history and current accounts, freezing your credit has no negative impact on your credit score.
What Is a Credit Freeze in Simple Terms?
A credit freeze, sometimes called a security freeze, is a tool that lets you control who can see your credit reports. When you place a freeze on your credit, companies and lenders cannot access your credit reports to open new credit accounts in your name. This means if someone tries to open a credit card, loan, or other credit product using your information without your permission, they will be blocked. A credit freeze is one of the strongest protections against identity theft because it prevents unauthorized credit activity before it happens.
It is important to understand that a credit freeze does not close your existing credit accounts or affect your current credit cards, loans, or payment history. You can still use your credit normally—purchase with your credit cards, make loan payments, and your credit history remains intact. The freeze only controls access to your credit reports for new credit checks.
How Does a Credit Freeze Work? A Clear Example with Steps
Imagine you want to apply for a new credit card, but your credit reports at the three major bureaus—Equifax, Experian, and TransUnion—are frozen. When the credit card company tries to check your credit, it will be unable to access your reports and likely deny the application. To proceed, you need to temporarily lift the freeze for that specific lender.
Here’s how the process works in a practical example:
- You contact each credit bureau online or by phone and provide your personal information and your freeze PIN or password (which you received when you first froze your credit).
- You request a temporary lift, specifying the time frame (for example, 24 hours) or the specific company (the credit card issuer).
- The credit bureau lifts the freeze, allowing the lender to access your credit report during that window.
- The lender completes the credit check and processes your application.
- After the time frame ends, the freeze automatically goes back into effect, or you can reapply it manually.
This process might seem inconvenient, but it gives you full control over who can see your credit report, reducing the risk of fraud.
Why Does a Credit Freeze Matter for You?
A credit freeze is particularly valuable if you want to protect yourself from identity theft. Identity thieves often try to open new credit accounts in someone else’s name. If your credit is frozen, they cannot do this because lenders cannot access your credit report to approve those new accounts.
Freezing your credit gives you peace of mind, especially if you do not plan on applying for new credit soon. For example, if you are not buying a house or applying for a new credit card, freezing your credit can protect you during that time. Because the freeze only affects new credit applications, you can continue using your existing credit cards and loans as usual.
However, it’s important to remember that a freeze does not protect you from all types of fraud. For example, someone could still use your existing credit cards if they have your card number. The freeze also does not stop bills from being sent to debt collectors or protect against scams that don’t involve new credit checks. It should be part of a broader strategy that includes monitoring your accounts, using strong passwords, and checking your credit reports regularly.
What Are Some Terms Commonly Mixed Up with a Credit Freeze?
People often confuse credit freezes with other credit protections. Here are some key terms to know:
- Fraud Alert: A fraud alert tells lenders to take extra steps to verify your identity before opening new accounts. Unlike a freeze, it does not block access to your credit reports. Fraud alerts typically last 90 days and are free to place. They are less restrictive than freezes but easier to set up if you suspect fraud.
- Credit Lock: This is a service offered by credit bureaus, often through apps, that works similarly to a freeze by restricting access to your credit reports. However, credit locks may have fees or subscription costs and different rules on how they are lifted. A freeze is regulated by law and free to place or remove.
- Credit Hold: This is a term sometimes used to describe temporary restrictions but is not an official term like freeze or lock. It may refer to an internal hold placed by a creditor or the bureau under certain conditions.
Knowing these differences can help you select the best tool for your needs. For example, if you want a free, long-term barrier to new credit, a freeze is typically the best choice. If you want a quick alert and don’t mind a short-term protection, a fraud alert might work better.
How Can You Place or Lift a Credit Freeze? Step-by-Step Guidance
To place a credit freeze, you must contact each of the three major credit reporting agencies separately: Equifax, Experian, and TransUnion. Here’s a straightforward step-by-step process:
- Visit the credit bureau’s website or call their freeze hotline.
- Provide personal information including your name, address, Social Security number, and date of birth to verify your identity.
- Create a PIN or password that you will use to manage your freeze.
- Confirm the freeze is in place and save your PIN securely.
To lift the freeze, use your PIN to:
- Temporarily lift the freeze for a specific creditor or time period, or
- Permanently remove the freeze if you want to restore full access.
For example, if you plan to apply for a mortgage in two weeks, you can schedule a temporary lift for 30 days with all three bureaus. After that period, your reports will automatically freeze again.
It is free to place, lift, or remove a credit freeze at all three bureaus. Avoid third-party websites that charge fees; always use official bureau sites or hotlines.
What Happens to Your Credit Score When You Freeze Your Credit?
Your credit score depends on your credit history, including payment history, amounts owed, length of credit history, new credit inquiries, and types of credit. A credit freeze does not change any of this information—it only restricts who can see your credit reports. Therefore, your credit score remains the same when you freeze or unfreeze your credit.
However, while frozen, lenders cannot access your reports to make new credit decisions. This means new credit applications will be denied or delayed unless you temporarily lift the freeze. Your existing credit accounts, payment history, and usage continue to affect your credit score as usual.
For example, if you earn $400 a month and have a credit card with a $1,000 limit, using the card responsibly will continue to build your credit score. Freezing your credit does not interrupt this process.
What Should You Do Next If You Want to Protect Your Credit?
If you decide a credit freeze is right for you, start by checking your credit reports for unauthorized activity at AnnualCreditReport.com. Review each report carefully for accounts you didn’t open or inquiries you don’t recognize.
Next, contact Equifax, Experian, and TransUnion to place freezes. Keep a record of your PINs and passwords safely. Plan ahead: if you anticipate applying for credit, know how to temporarily lift your freeze.
Additionally, combine a freeze with other safety steps:
- Set up fraud alerts if you suspect identity theft.
- Regularly monitor your bank and credit card statements.
- Use strong, unique passwords and update them often.
- Be cautious about sharing personal information online or over the phone.
Freezing your credit is a powerful step for preventing new unauthorized credit activity but should be one part of an overall credit safety plan.
Frequently asked questions
Will a credit freeze stop all types of credit inquiries?
No, a credit freeze blocks “hard” inquiries used to open new credit accounts but does not stop “soft” inquiries. Soft inquiries include checking your own credit, pre-approved credit offers, or employer background checks, and they do not affect your credit score.
How long does it take to lift a credit freeze?
When done online or by phone with your PIN, lifting a freeze typically happens within minutes to a few hours. If done by mail, it can take several days. Plan ahead to avoid delays when applying for credit.
Can a credit freeze be placed on a minor’s credit report?
Yes, parents or guardians can place a credit freeze on a minor's credit report to protect against identity theft, especially since children’s information can be targets for fraud.
Does a credit freeze affect existing credit accounts?
No, a credit freeze does not affect your existing credit cards, loans, or payment history. It only restricts access to your credit reports for new credit applications.
If I freeze my credit, can an employer still perform a credit check?
Employers typically perform “soft” credit checks, which are allowed even if your credit is frozen. For jobs requiring a “hard” credit check, you may need to temporarily lift the freeze for the employer to access your report.