You should freeze your credit. Here’s why

Falling victim to a scam can be debilitating for your personal finances, and worryingly, financial fraud is becoming more common. Bankrate’s recent Financial Fraud Survey found that 1 out of 3 U.S. adults fell victim to financial fraud or a scam in 2024.

Cybercrime is increasing, so how can you protect your data and your finances? Other than keeping your passwords safe and ignoring scam texts, one of the best ways to protect yourself from identity theft and fraudulent accounts is to freeze your credit.

Should you freeze your credit?

The Federal Bureau of Investigation Internet Crime Complaint Center’s most recent Internet Crime report shows that it received almost 200,000 phishing reports in 2024. And cybersecurity company Crowdstrike reports that vishing (voice phishing) scams were up 442 percent between the first and second half of 2024. So, is freezing your credit worth it? It is, says Monique White, accredited financial counselor in San Francisco.

“We are susceptible to hacks nowadays,” says White. “We’re getting notices about security breaches happening [frequently].”

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If the increase in internet crime isn’t enough to convince you, here are some other good reasons you might freeze your credit:

• Your data was compromised in a breach
• You fell victim to a scam that exposed your personal data
• You found a fraudulent account on your credit reports
• To prevent criminals from opening accounts in your name
• To prevent friends or family from opening accounts in your name
• Peace of mind

If you do not plan on taking out any loans or trying to get a line of credit, there’s no harm in putting a security freeze on your credit report, just to protect your information a little bit better. So it’s just an extra layer of security and peace of mind.

— Monique White Accredited financial counselor

However, there are situations when you’re seeking credit that it’s wise to freeze your credit. If you’re applying for a home loan, for example, you might freeze your file up until the moment your prospective mortgage lender wants to make an inquiry — and then afterward as well. Taking these steps can ensure your credit doesn’t suffer around the crucial time of locking in a mortgage rate.

Of course, if you don’t have plans to apply for loans or other credit products in the near future, leaving your credit in the freezer is pretty common sense.

How to freeze your credit

Freezing your credit is easy after you create accounts with credit bureaus Equifax, TransUnion and Experian. If you want to place a freeze, here’s what to do.

Freezing your credit with Equifax

1. Log in to or create your account with the bureau.
2. On your account’s homepage menu, click “Freeze” under “Your Identity.”
3. Follow the prompts.

Freezing your credit with TransUnion

1. Log in to or create your account with the bureau.
2. On your account’s homepage, click “Credit Freeze” in one of the tiles.
3. Follow the prompts.

Freezing your credit with Experian

Placing a credit freeze on an Experian profile is a little different, but still quick and easy.

1. Log in to or create your Experian account.
2. From the homepage, scroll to the bottom of the page and click “Security freeze” under “Tools.”
3. Once on the security freeze page, toggle the slider to “Frozen” and your credit file will freeze.

For what it’s worth, Experian also offers CreditLock as part of its paid plan. The bureau says CreditLock is one extra layer of security beyond that of a credit freeze since it:

• Allows you to control who can and can’t see your credit file.
• Features daily monitoring and alerts in case someone applies for credit under your name.

What if you need to unfreeze your credit?

Because creditors can’t pull your credit to determine approval, you may have an extra step to complete in opening your credit before submitting applications for loans, credit cards and other products.

“It’s just something to consider — not a downside — but you do have to plan accordingly,” White says.

If you need to unfreeze your credit completely, you can log in to your credit bureau accounts and simply click a button to unfreeze your file.

You can also thaw your credit, which means temporarily lifting the freeze for a set period, so potential creditors can access your profile and determine your eligibility for approval. At the end of the thaw, your credit will automatically freeze again on the date you specify.

What’s your next step?

Even if you plan to apply for credit in the near future, understanding how to freeze your three credit files — and getting in the habit of doing it routinely — can help protect your data and prevent financial fraud. Consider visiting the credit bureaus’ websites to get started. And remember: Freezing your credit is free and doesn’t affect your credit score, so there’s virtually no downside to this extra layer of protection for your data.