A credit freeze and a credit lock are two ways to protect your history of borrowing money from being used wrongly by scammers. They stop outsiders from making new accounts with personal information. Although credit lock and freeze in credit card may have various acronyms, they operate similarly: A credit freeze is a free service stopping new account formation in your name. But a credit lock is a paid service that lets you unlock faster than the freeze does on your reports. This article will brief us about how credit freeze and locks work. You can also look if your credit card is locked or frozen in a different credit card app for managing cards.
Difference Between Credit Freeze and Credit Lock
| Credit Freeze | Credit Lock |
| It is a feature that can be used without any cost. | Credit reporting companies can put a monthly fee on people’s accounts. |
| It can take more than 24 hours to freeze the card and less than 1 hour to unfreeze it. | It only takes a few seconds to open and close the account. |
| To stop or remove the freeze on your credit, you need to send an official message to institute that check up on it. | Immediate access to enable or disable credit lock via mobile application. |
| Suitable for individuals who aren’t applying for loans and new credits often. | Designed for individuals who frequently seek loans and credit. |
| Utilise this tool if you are vulnerable to being targeted by hackers or if your confidential data has been compromised. | Utilise this tool to safeguard your credit report against unauthorised and undisclosed access. |
How to Activate Credit Freeze?
Follow these given steps to successfully do a credit freeze on a credit card:
- Contact the four prominent credit bureaus (Equifax, CRIF High Mark, and Experian) or access their websites to initiate the process.
- Please ask each credit reporting agency to block your information. The reason is that if you set a freeze on your credit reports back just with one or two firms, it won’t be enough. Scammers can still find out about your fund details and ways of paying from the remaining companies.
- Put your needed contact and important info on their sites, then get a special number called PIN.
- When you put in the PIN, it stops unknown or unauthorised people from seeing your credit report. This ensures outsiders do not check your credit record without permission.
How to Activate Credit Lock?
Make sure to follow these below-mentioned steps to do credit lock:
- Visit the official website of credit bureaus and complete the application form to establish a credit lock. It is recommended to activate it on every desk, as it provides this functionality for enhanced security.
- Access your account on the credit bureau’s website or mobile applications by entering your login and password.
- Activate and deactivate the credit lock with a few simple touches.
How to Deactivate Credit Freeze or Credit Lock?
To lift a credit freeze, use the toggle feature within your account. If you have placed a freeze on your credit card with all three national bureaus, you must lift the freeze individually at each bureau. You will be given the choice to permanently unfreeze your credit or immediately lift the freeze. If you are uncertain about the consequences of freezing your credit, you can also acquire further knowledge.
To remove a credit lock from your credit card, just toggle a virtual switch online or within an application offered by any credit bureau. Once you no longer need to access your credit file, you can easily remove the lock by simply toggling the switch back on.
Credit freezes and locks are highly rigorous techniques that effectively secure your credit files, restricting access by malicious individuals and lenders you may approach for loans. While they provide exceptional protection for your credit information, utilising their services while aggressively pursuing new credit necessitates meticulous structuring.
Conclusion
Both credit card freezes and credit locks are excellent strategies to secure your financial details from potential identity theft and illicit actions. Understanding the distinctions between the two alternatives will enable you to make a well-informed choice corresponding to your requirements and preferences. Remember to examine the rules and regulations in your location and carefully examine the conditions of employment of any credit lock services before making your choice. Safeguarding your credit information is crucial for preserving financial stability and growth. You should have access to various credit card app to get more information about your credit card.
