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Personal finance glossary

Credit freeze

Definition

A free lock on your credit file at each bureau that blocks new accounts from being opened in your name. It stops most identity-theft loans cold and can be lifted temporarily online when you apply for credit yourself.

Why it matters

A freeze is the single strongest free defense against identity theft: a stolen Social Security number is far less useful when no lender can pull the file. The cost is a few minutes of unfreezing before your own applications.

Example

After a data-breach notice, someone freezes their file at all three bureaus in one evening, free. Months later a fraudster's card application dies at the credit check; when the person later finances a car, they thaw the file online for a week and refreeze after.

Related terms

This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.

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