October 27, 2017

Credit Freeze Versus Credit Lock

If you are looking into a credit freeze following the Equifax breach, make sure you don’t confuse it with a credit lock. While a credit lock may be a similar action, there are some very important differences. A credit freeze offers better protections, and can be more cost-effective:

  • A credit freeze is guaranteed by law, whereas a credit lock is simply a contractual agreement with the credit reporting agency.
  • A credit lock with Equifax may require you to sign an arbitration agreement, which reduces or eliminates your ability to sue them.
  • A credit freeze may be more time-consuming to manage, as it requires identity verification to lift or change. A credit lock is easy to add or lift with a simple app and no PIN or verification, which is convenient but doesn’t offer as much protection.
  • Credit locks generally require that you pay an ongoing annual fee.

There is no perfect identity and data protection, but if you are looking into a credit freeze, read my blog post to help guide you through the process.