Credit lock

What It Means

A credit lock is a service from a credit bureauCredit bureauA company that collects information about how people use credit and sells it as credit reports; Equifax, Experian and TransUnion are the three nationwide ones. See more that restricts access to your credit reportCredit reportA record of how you've borrowed and repaid, kept by credit bureaus and sold to lenders, landlords, insurers and others who decide whether to deal with you. See more so new lenders can't read it, which helps stop someone from opening an account in your name. It does the same basic job as a credit freezeCredit freezeA free block you place on your credit report at each bureau so lenders can't read it for a new application until you lift it; also called a security freeze. See more. The difference is the rulebook: according to the bureaus' own comparisons, a freeze is free and protected by federal law, while a lock runs under the company's own terms and may be part of a paid service.

How People Say It

• "I just lock my credit in the app."
• "Is a lock the same as a freeze?"
• "The monitoring plan came with a credit lock."

The Breakdown

A short example. After a breach letter, Ben signs up for a monthly identity plan because it includes a credit lock he can toggle in an app. Six months later he notices he's been paying for it every month, and he only ever locked his report at the one bureau that sold him the plan.

Where it goes wrong. The bureaus themselves say a freeze is free and protected by federal law, and that a lock isn't governed by the same federal rules. Ben paid for something a free freeze would largely have done. And like a freeze, a lock at one bureau does nothing at the other two, so his other two reports stayed open to new lenders.

What to watch for

• Compare the lock's price and terms with a free freeze before you pay.
• Protect all three reports, whichever tool you use at each bureau.
• Check whether a lock is bundled into a subscription, and whether you still want the rest of the bundle.

Good to Know

The FTC says a freeze requested online or by phone must be placed within one business day and lifted within one hour, and that it's free to place and lift at all three bureaus. A lock's timing, cost and features are set by the company offering it, so read its terms. Whichever you choose, keep a record of which bureaus you've protected.

Related Terms and Categories

• Credit freeze

  A free block you place on your credit report at each bureau so lenders can't read it for a new application until you lift it; also called a security freeze.

• Fraud alert

  A note on your credit report asking lenders to verify your identity before opening credit; you place it at one bureau, which must tell the other two.

• Credit monitoring

  A service that watches your credit reports and alerts you to changes, such as a new account or inquiry; it warns you after the fact and doesn't prevent fraud.

• Identity theft

  When someone uses your name, account details or other personal information without permission to open accounts, make charges or commit other fraud.

• Credit bureau

  A company that collects information about how people use credit and sells it as credit reports; Equifax, Experian and TransUnion are the three nationwide ones.

• Credit report

  A record of how you've borrowed and repaid, kept by credit bureaus and sold to lenders, landlords, insurers and others who decide whether to deal with you.

Debt and credit