Every day, you hear about another data breach. Hackers steal Social Security Numbers (SSN) and open credit cards in innocent people's names.
Scared, you go to Experian or Equifax's website. They immediately push you to sign up for a "Credit Lock" subscription for $24.99 a month. It sounds like a small price to pay for safety.
But they are hiding something from you.
You have a federal right to protect your credit for $0. It is called a "Credit Freeze" (or Security Freeze). Not only is it free, but it also offers stronger legal protection than the paid product. Here is why you should cancel your subscription and freeze your credit instead.
Disclaimer: Freezing your credit does not affect your credit score. It simply prevents new lenders from accessing your file. You must unfreeze it temporarily to apply for a loan.
Paying $25 a Month for 'Credit Lock'? Stop
1. What is the Difference? (Freeze vs. Lock)
They sound the same: "I want to stop people from accessing my credit report." But legally, they are worlds apart.
| Feature | Credit Freeze (Security Freeze) | Credit Lock |
|---|---|---|
| Cost | $0 (Free by Federal Law) | Often Monthly Fee ($20+) or bundled. |
| Legal Protection | Guaranteed by Law. If money is stolen while frozen, you have strong liability protection. | Contractual. Governed by the company's Terms of Service (often includes arbitration clauses). |
| Speed | Must be lifted within 1 hour (online/phone). | Instant (via App). |
Verdict: The "Lock" is a commercial product designed for convenience (easy app toggle). The "Freeze" is a consumer right designed for security. Unless you apply for loans every single day, the Freeze is superior.
2. Why Credit Bureaus Push the "Lock"
Why do Experian, TransUnion, and Equifax hide the "Freeze" option in the footer of their websites?
Because they can't sell your data when it is frozen.
When you pay for a "Lock," you are often agreeing to their marketing terms. When you initiate a Federal Freeze, you are effectively telling them: "Stop sharing my data." They lose money, so they make it hard to find.
3. How to Freeze Your Credit (The "Big 3")
To be fully protected, you must freeze your file at ALL THREE bureaus. Freezing one and leaving the others open is like locking your front door but leaving the back window wide open.
🛡️ Action List (Do This Now)
Go to these official pages and create a free account. You do NOT need to enter credit card info.
- Equifax: Search "Equifax Security Freeze".
- Experian: Search "Experian Freeze Center" (Be careful not to click "CreditLock").
- TransUnion: Search "TransUnion Credit Freeze".
Tip: Save your PINs and login passwords in a secure password manager. You will need them to unfreeze later.
4. When Should You "Thaw" (Unfreeze)?
Living with a frozen credit report is normal. It does not hurt your score. You only need to lift it ("Thaw") temporarily when:
- Applying for a mortgage or auto loan.
- Applying for a new credit card.
- Applying for an apartment rental.
- Signing up for a new utility/cell phone plan.
How to do it: Log in to the bureau's app or website, select "Temporary Thaw," and choose a date range (e.g., 24 hours). It unlocks instantly and re-locks automatically after the time expires.
5. What About "Child Identity Theft"?
This is a growing crime. Hackers steal a child's clean SSN and use it for years before the child turns 18.
Federal law now allows parents to create and freeze a credit file for children under 16 for free. If you have kids, this is the most important financial gift you can give them.
Conclusion: Security Shouldn't Cost Money
Don't let fear marketing trick you into another monthly subscription. The best protection available is already yours by law.
Take 15 minutes this weekend. Log in to the three bureaus, click "Freeze," and sleep soundly knowing that no hacker can open a loan in your name—and you didn't pay a dime for it.
Action Plan:
- Cancel your $20/month credit monitoring subscription if you only use it for the "Lock" feature.
- Visit Experian.com, Equifax.com, and TransUnion.com/freeze.
- Set up a "Security Freeze" (Not Lock) on all three today.
Helpful Resources:
FTC.gov: Credit Freeze FAQs
USA.gov: Official Guide to Credit Freezes
0 Comments