Identity Theft: Should You Choose a Credit Lock or a Credit Freeze?

My husband was recently the victim of identity theft and was advised to alert the credit bureaus and put a stop to new activity. While researching how to do that, he learned about some of the services that offer to “lock” your credit rather than “freeze” it. After we talked about it and weighed the pros and cons, he chose to freeze his credit and contacted all three credit bureaus. This was a time-consuming task.

Here are the key differences between a lock and a freeze. Third-party companies and credit bureaus often charge for a lock, which prevents access to your credit information. They set their own policies, liability for losses is vague and locks are sometimes combined with other offerings. Credit freezes, on the other hand, are free. They’re under federal jurisdiction with losses protected by law. With a credit freeze, you get an extra layer of security with a PIN (personal identification number). With that PIN, you can lift the freeze for a credit application (if needed) and then easily “refreeze” the accounts. Chris Bjorklund is the Consumer Advocate for the Diamond Certified Resource. Email her at info@diamondcertified.org or follow her on Twitter @ASavvyConsumer.