If you want to shield yourself from identity theft, you might be considering a security freeze and/or a credit lock. In this article, we will explore the differences between these two measures; by understanding their features and limitations, consumers can make informed decisions about their credit protection needs.
Security Freeze: Your Statutory Right.
A security freeze vs. credit lock, both measures protect you from identity theft in the same way. When someone tries to borrow money in your name, the creditor they apply to will likely want to check your credit. If you have a security freeze or a credit lock in place, the creditor can’t do that and will probably refuse to lend money. Both security freezes and credit locks prevent anyone from “pulling” your credit information.
The differences are matters of convivence, cost, and trust. You have a legal right to freeze your credit reports. But to do it, you have to contact each credit reporting agency, and when you want to apply for credit, you have to contact each again to unlock your reports. You are in charge of keeping the information you need to unlock your credit reports (typically a PIN or password).
A security freeze costs you nothing but time.
Credit Locks: Cost, Convenience, and Trust.
On the other hand, credit locks are a product offered by certain private companies. They offer easier access to the credit freezing mechanism: you only have to contact one entity to lock or unlock your credit. Some companies offer ease of access – being able to lock or unlock your credit with a phone app.
In exchange for that convivence, you have to pay. Often companies try to bundle credit locks with other products, and you may find yourself paying a monthly fee for something you can do for free.
You may also be giving up some important rights when you sign up with one of these companies: most companies include arbitration clauses in their contracts with consumers to block you from taking them to court. Even worse, some companies offering credit locks are affiliates of one of the credit reporting agencies. By signing up with them, you might be giving a credit reporting agency a “get out of court free” card.
Finally, if you’re freezing your credit, it’s probably out of security concern. When you involve a credit monitoring company, you add another entity that, if its security fails, can leak your financial data to identity thieves.
Security Freeze vs. Credit Lock – There’s No Magic Identity Theft Armor
Neither a security freeze nor a credit lock is a guarantee against ID theft. There are several reasons for this.
First, if someone has enough information, they can impersonate you to a credit reporting agency and unfreeze your credit report.
Second, not all identity theft involves an application for credit that will result in an attempt to pull a credit report. Some fringe lenders don’t get mainstream credit reports, and they rely on “alternative” credit reporting agencies specializing in fringe credit. Many apartment complexes won’t pull credit during an application, instead relying on tenant screening reports. And very few doctors or hospitals will pull your credit before treating you. Identity thieves can target all of these.
Seeking Assistance From an Identity Theft Lawyer
While a security freeze or credit lock can help protect you from identity theft, dealing with the aftermath of identity theft can be a complex process. In such cases, consulting an identity theft lawyer is recommended.
Consulting with an identity theft lawyer can provide invaluable guidance and support in navigating the complexities of identity theft cases, helping you regain control of your credit and financial well-being.
If you’ve fallen victim to identity theft, contact the team of experienced attorneys at The Holland Law Firm. No one should feel alone or helpless when trying to regain their identity.