Credit Freeze meaning
A credit freeze is an anti-fraud measure wherein a credit bureau, Equifax, Experian, or TransUnion, prohibits third-party sharing of a credit report of the customer. The customer can request a credit freeze upon the suspicion of identity theft.
Identity theft occurs when a fraudster opens new accounts or makes purchases using the credit information of a customer. The customer who is now the victim can limit the damage resulting from fraud by using a credit freeze. A credit freeze, until lifted, disables financial institutions and other third-party institutions from accessing the customer’s credit information.