When it comes to protecting your financial well-being, safeguarding your credit is a critical step. Whether you’ve been a victim of identity theft or just want to add an extra layer of security, you may have heard about locking and freezing your credit. But what’s the difference, and which option is best for you?
Why Choose a Credit Freeze vs Lock?
Both locking and freezing your credit serve the same fundamental purpose: preventing unauthorized access to your credit report. This can help stop identity thieves from opening fraudulent accounts in your name. However, while these tools are similar, they aren’t identical, and understanding their differences can help you make the best choice for your situation.
Credit Freezes: Federal Protection for Your Credit
A credit freeze is a powerful, federally regulated tool that restricts access to your credit report. Here’s what you need to know:
- Cost: Free, thanks to federal law.
- How It Works: You must request a freeze from each of the three major credit bureaus — Equifax, Experian, and TransUnion. This request can be done online, by phone, or by mail. Once your credit is frozen, lenders and creditors cannot access your report, making it much harder for identity thieves to open accounts in your name.
- How to Unfreeze: You can temporarily or permanently lift a freeze at any time, but it requires a PIN or password and may take a little longer to process compared to a lock.
A credit freeze is a great option if you’re looking for a strong, no-cost solution to prevent fraudulent activity on your credit file.
Credit Locks: More Flexibility with a Possible Fee
A credit lock functions similarly to a freeze but offers more convenience:
- Cost: Some credit bureaus offer credit locks as part of a paid service.
- How It Works: You can lock and unlock your credit report through the credit bureau’s app or online portal, giving you more control if you need to grant temporary access.
- How to Unlock: Unlike a freeze, which requires a PIN and a manual request, a credit lock allows for near-instant access restoration.
If you frequently need to allow access to your credit report — for example, when applying for loans or credit cards — a lock may be a more convenient choice.
Credit Freeze vs Lock: Which One Should You Choose?
- Go with a credit freeze if you’re looking for a free and secure way to block all access to your credit report. It’s a great long-term option for those who don’t need frequent access.
- Opt for a credit lock if you prefer the flexibility of quickly unlocking and locking your credit through an app. Just keep in mind that some credit bureaus may charge for this service.
Take Control of Your Credit Security
At BentOak Capital, we believe in empowering you to make informed financial decisions. Whether you choose a credit freeze or a credit lock, the most important step is ensuring your credit remains protected against fraudulent activity.
If you’re unsure which option is right for you or have questions about other financial security strategies, we’re here to help. Contact BentOak Capital today for expert guidance on protecting your financial future.
IMPORTANT DISCLOSURE INFORMATION: Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BentOak Capital [“BentOak”]), or any non-investment related services, will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of its services should be construed as legal or accounting advice. Moreover, you should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for personalized investment advice from BentOak. Please remember that it remains your responsibility to advise BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure Brochure discussing our advisory services and fees is available upon request at www.bentoakcapital.com/disclosure. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement. Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your accounts; and, (3) a description of each comparative benchmark/index is available upon request. Please Note: Limitations: Neither rankings and/or recognitions by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any designation, certification, or license should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if BentOak is engaged, or continues to be engaged, to provide investment advisory services. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Rankings are generally limited to participating advisers (see link as to participation criteria/methodology, to the extent applicable). Unless expressly indicated to the contrary, BentOak did not pay a fee to be included on any such ranking. No ranking or recognition should be construed as a current or past endorsement of BentOak by any of its clients. ANY QUESTIONS: BentOak’s Chief Compliance Officer remains available to address any questions regarding rankings and/or recognitions, including the criteria used for any reflected ranking.