A credit freeze is the best way to protect your financial information from criminals looking to defraud you, says money expert Clark Howard. But instead of freezing your credit, many companies, most notably LifeLock, promote locking it.
You may be wondering whether a credit lock is the same as a credit freeze. They’re not.
In this article, I’ll explain the difference between a credit lock and a credit freeze and why Clark thinks one is clearly better than the other.
The Difference Between a Credit Lock and a Credit Freeze
Despite having similar names, a credit lock and a credit freeze do totally different things.
Credit locks are typically administered by private companies. You’ve probably seen commercials for LifeLock. Other companies offer locking services too: Credit Karma has a beta credit lock program (for TransUnion only).
Credit locking is a service that almost always costs money, usually in the form of a subscription. The paid services promise to protect your credit information, though their methods differ from company to company.
A credit freeze is something you initiate directly with one (or all) of the major credit reporting bureaus: Equifax, TransUnion and Experian.
The credit reporting bureaus offer credit lock services, too. To clear up any confusion, here’s a side-by-side table of the differences between a credit lock and credit freeze.
Credit Lock vs. Credit Freeze: The Differences
| Credit Lock | Credit Freeze |
| Prevents others from accessing your credit information | Prevents others from accessing your credit information and/or opening new credit in your name |
| Typically costs money with anti-fraud companies and 2 out of the 3 major credit bureaus. | Free of charge with all 3 bureaus |
| Run by credit bureaus and paid anti-fraud services | Administered by credit bureaus only |
| Governed only by policies of the respective companies | Governed by federal law |
| Not clear who is liable for any losses | Losses legally protected |
Credit Lock vs. Credit Freeze: Why a Credit Freeze Is Better
Clark says a credit freeze is clearly a better option than a credit lock.
“A credit freeze allows you to seal your credit reports, so only you can temporarily ‘thaw’ your credit when legitimate applications for credit and services need to be processed,” he says. “The added layer of security means that thieves can’t establish new credit in your name even if they are able to obtain your personal information.”
Unlike credit locks, credit freezes are free.
Final Thoughts
Clark advises you not to pay for credit locks and the redundant “extras” that companies bundle with them.
“It is absolutely ridiculous that still, after all of the scandals, the credit bureaus still try to get into our wallets,” says Clark. “They make plenty of money building dossiers on us and selling our information over and over again. I hate it.”
Instead, he recommends that you follow these steps to protect your finances:
- Sign up for an account with Credit Karma or Credit Sesame to get free credit monitoring and notifications of suspicious activity.
- Freeze your credit with all three main credit bureaus.
Just by following those two simple steps, you will bolster your protection against fraud and identity theft for FREE!
More Credit Resources From Clark.com:
Best Credit Card Sign-up Bonuses for 2023 - Team Clark spent hours reviewing the market for credit card sign-up bonuses and evaluated them according to the guidelines for usage set by money expert Clark Howard. Clark believes credit cards with exorbitant annual fees are a bad idea for most… 
Best Cell Phone Plans in 2023: The Cheapest Plan for Every Need - Team Clark ranks the best cell phone plans and deals! See our favorites for unlimited data, families and cheap plans starting at $10/month. 
