What is a Credit Lock? A Credit Lock Versus Credit Freeze Comparison

A few years ago, during the huge Equifax hack, I proactively placed a credit freeze with the credit bureaus. When doing so, I couldn’t help but notice that there’s another new credit protection service option being pushed by the credit bureaus: a credit lock. I hadn’t heard of a ‘credit lock’ prior, and assumed that ‘credit lock’ was just an alternative name for a credit freeze. Sadly, there’s more to it than that (more confusion for overwhelmed consumers – yay!). So, I decided to dig in and learn everything I could about credit locks, so that I could share my findings with readers.




What is a Credit Lock?

A credit lock is a relatively new credit protection service being offered by the three credit bureaus – Equifax, TransUnion, and Experian. The bureaus are marketing credit locks as a faster, more convenient alternative to credit freezes.

credit lock versus credit freeze

Similar to credit freezes, when you place a credit lock, you inform the credit bureau to not release your credit report to a party that requests it, without your express consent. Without access to your credit report, a credit lock will theoretically prevent companies from reviewing your credit history and then extending credit, loans, and services to someone using your identification. In effect, this prevents fraudulent new accounts being opened with your identification.

When you place a credit lock with a bureau, you’re only placing it with that one bureau. This means that in order to effectively prevent someone from using your identity to access credit, you should be placing a credit lock with all three bureaus (similar to credit freezes).

Also, similar to “lifting a freeze”, you can “unlock” your report with that bureau at any time, in the event that you legitimately need companies to be able to view your credit reports for whatever reason. As with locking, you’ll want to unlock with all three.

The similarities naturally beg the question, “What’s the difference between a credit lock and a credit freeze?”.




Credit Lock Vs Credit Freeze: What’s the Difference?

The most notable difference between a credit lock and credit freeze is that credit freezes are regulated and guaranteed by state law. If, for example, your credit report was improperly accessed during a credit freeze, you’d be protected from financial losses as the responsibility would fall on the credit bureau. Credit locks, on the other hand, are a direct contractual agreement between you and the individual credit bureau, and it’s unclear where the liability would fall. To get the service, you sign their unregulated agreement.

All three bureaus have some sort of arbitration and class action waivers, among other legalese, that you should be wary of (the same kind that earned Equifax a lot of blowback right after the hack). And, it’s possible that by using credit lock services, you may boost the likelihood that you will be marketed to by 3rd parties.

Price is another factor here. TransUnion includes credit locks as part of their $29.95/mo. credit monitoring service, Equifax has free credit locks, and Experian is free for a week and $24.99/month after.

Meanwhile, starting in late 2018, free credit freezes (and thaws) are available to all Americans.




Here’s a chart that further breaks down the differences between a credit lock and credit freeze:

Credit Lock Versus Credit Freeze

Credit Lock:Credit Freeze:
What it is:A credit lock informs the credit bureau to not release your credit report to a party that requests it, without your express consent. Without access to your credit report, a credit lock will theoretically prevent companies from reviewing your credit history & extending credit, loans, and services to someone using your identification. In effect, this prevents fraudulent new accounts from being opened with your identification.A credit freeze informs the credit bureau to not release your credit report to a party that requests it, without your express consent. Without access to your credit report, a credit freeze will theoretically prevent companies from reviewing your credit history & extending credit, loans, and services to someone using your identification. In effect, this prevents fraudulent new accounts from being opened with your identification.
Where to get:
What it costs:

  • TransUnion: $29.95/mo.

  • Experian: free for 7 days; $24.99/month thereafter

  • Equifax: Free


  • TransUnion: free

  • Experian: free

  • Equifax: free

Pros:

  • Purportedly easier/quicker to implement and lift a lock than a freeze.

  • Implementation of lock/unlock is instant, according to Experian/TransUnion (Equifax says 24-48 hours).

  • Includes credit monitoring alerts.


  • Regulated by state law - liability with credit bureau.

  • Gives consumers more legal protections.

  • No marketing data sharing.

  • Free.

Cons:

  • Need to lock with all 3 bureaus to be effective.

  • Can be expensive with TransUnion & Experian's monthly costs.

  • Unregulated by state law - liability is murky if financial loss occurs.

  • Includes arbitration, class action, & other legal waivers that surrender consumer rights.

  • Marketing data sharing can result.


  • Need to freeze with all 3 bureaus to be effective.

  • Can be expensive if not obtained for free (after documented identity theft).

  • Can be a 24-48 hour time lag for freeze and thaw.

Should you Use a Credit Lock?

After my research, I would not recommend using a credit lock. In addition to the murky consumer protections, legalities, and possible data re-selling for marketing purposes, TransUnion and Experian’s pricing are such that the financials or credit locks don’t make sense compared to credit freezes (keeping in mind that a freeze or lock with 1 bureau needs to be a freeze or lock with all 3). For the time being, I’m using neither lock nor freeze, and sticking to close reactive credit monitoring. If and when I’m targeted by identity thieves, I would opt for credit freezes over credit locks.

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5 Comments

  1. Anne Sofie
  2. Equifax Brand Ambassador
  3. Steve
  4. bill m ward

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