There are different ways to secure your account if you are concerned about identity theft. You can request the credit bureaus to either lock or freeze your credit report. These terms are sometimes used interchangeably as both of them are used to secure your credit reports from identity theft or data breach. But do you know the difference between them? Well, the main difference is that a credit freeze is harder to unlock than a credit lock. But that’s not it! There is much more to know. Also get to know the best credit card in India available. Please read on!
What is a Credit freeze?
A credit freeze is a process that restricts access to your credit report, thus protecting your account from identity theft and fraud.
How does Credit Freeze work?
When you ask the credit bureau to put a credit freeze on your report, it restricts a lender or creditor from accessing your credit information. You can freeze or unfreeze your credit report using the credit card app whenever you want through a password or a PIN.
How to freeze my credit report?
You can follow the following steps to freeze your credit report:
- Contact your credit bureau, share your personal information with them, and request a PIN.
- After your information is verified, the credit bureau will send you a PIN.
- You can freeze or unfreeze your credit report with the help of the PIN in your credit card app.
When should you freeze your credit account?
Following are some of the situations where you might think of credit freezing your account:
- When the risk exposure is high.
- When you’ve been a victim of identity theft or a data breach.
- When trying to protect your data against identity theft.
- When you suspect your credit report has been exposed or compromised.
What is a Credit lock?
Like a credit freeze, a credit lock also restricts lenders from freely accessing your credit report. You need to contact all the major credit bureaus (Experian, Equifax, and TransUnion) to place a credit lock. The credit lock/unlock can then be managed through an online credit card app on your mobile with the help of a user ID and password.
When should you use a credit lock?
Following is the situation when you might consider using a credit lock:
- To protect your information as a preventative measure before something undesirable happens.
Credit Freeze vs Lock: What is the difference?
By now, you know that both credit lock and credit freeze restrict access to your credit report and help protect your account from identity theft. But the question is, which one should you use?
One of the main differences between a credit freeze and a lock is where you go to manage it. If you have credit locked your account through TransUnion Credit or TrueIdentity, you can unlock the lock through their sites. If you have used the credit freeze, you can use the TransUnion Service Centre. Whichever one you decide to use out of credit freeze and credit lock, the power to manage your credit report access lies with you.
Following is a table showing the main differences between a credit lock and a credit freeze:
| Credit Freeze | Credit Lock |
| It is a chargeable service. | It is a free of cost service. |
| It is PIN protected. | It is username and password protected. |
| You can call the credit bureau to send you the PIN or mail them your request to freeze or unfreeze your credit report. | Credit lock can be activated or deactivated on your smartphone credit card app. |
| It is ideally used when you suspect your personal information has been stolen. | It is used as a preventative measure to secure your credit report. |
Conclusion
Now that you are familiar with the main differences between a credit lock and a credit freeze, you can decide which one will best suit you. It is a wise idea to apply for the best credit card in India, from Wishfin credit card app use it responsibly, stay on top of your credit information and take preventative measures to keep it safe. Make a habit of checking your credit report regularly for errors and fraudulent activity.