Posted on by Karen Coval

Why should you freeze your credit?

Safeguarding your identity and finances is paramount but it can be confusing.

Renowned consumer advocate and money expert Clark Howard has been a steadfast advocate for empowering individuals with practical advice to save more and spend less. One of his steadfast recommendations for protecting yourself financially is to freeze your credit.

Credit Lock vs. Credit Freeze: Understanding the Difference

Both credit locks and credit freezes serve the purpose of restricting access to your credit information. However, they differ significantly in their execution and implications.

  • Credit Lock: Typically offered by private companies, credit locking services often come with a price tag, usually through a subscription model. Companies like LifeLock, Credit Karma, and TransUnion offer credit locking services with varying degrees of coverage and cost.
  • Credit Freeze: In contrast, a credit freeze is initiated directly with major credit reporting bureaus—Equifax, TransUnion, and Experian. Governed by U.S. law, a credit freeze prohibits access to your credit file, effectively blocking new loan applications until you “thaw” your credit.

Clark’s Recommendation: Why Choose a Credit Freeze?

Clark Howard advocates for the simplicity and security of a credit freeze. Unlike credit locks, credit freezes are free and federally regulated, offering a robust layer of protection against fraud and identity theft.

By taking advantage of free financial products such as Credit Karma or Credit Sesame for credit monitoring and freezing your credit with all three major credit bureaus, you can effectively lock your credit for free—a practice Clark strongly endorses.

Clark Howard’s advice is clear: opt for the free and federally regulated option—a credit freeze—to fortify your defenses against financial fraud and identity theft. By following these simple steps to freeze your credit, you can enhance your financial security without breaking the bank.

>>Also check out Clark Howard’s tips for reaching a human at the credit bureaus.