What Is the Difference Between Credit Freeze Vs Credit Lock?

Digitization has made our lives considerably easier, but it is not without its vices. The increase in cyber fraud has led many organizations to deploy cyber breach management solutions to counter the menace. Credit Freeze and Credit Lock are two such safety tools that prevent theft/hijack of your credit history, restricting access to your credit reports. It is a viable option that needs to be considered if you have been victimized by identity theft or there is a potential danger of a sensitive data breach.

So, are the terms credit freeze and credit lock, one and the same? Both are safety mechanisms developed to prevent criminals from accessing/hijacking your personal particulars. They both restrict permission to your credit report, thus giving the required protection. One needs to apply for a credit freeze or a credit lock through the national credit bureaus recognized in India, for blocking access to credit reports. This is the foremost thing that can be considered as a safety mechanism, before getting your loan or credit card processing.

However, they do differ in fundamental features.
Let us explore the differences between a credit freeze and a credit lock, to understand which would suit safety needs better.

Difference between Credit Freeze Vs Credit Lock

 

Key Features	Credit Freeze	Credit Lock
Access	For getting access, like adding or lifting a credit freeze, a request has to be made to the concerned credit bureau	Instant access where one can turn on and off credit lock
Fees	Free Service	Paid services plan as listed with the national credit bureaus
When to use	When you have reasons to believe your credit report & personal information has been compromised. When the risk of exposure of your personal data is high	As a preventive mechanism to safeguard your credit report and personal data
Locking/Unlocking	Activation is done by the credit bureau within 24 hours of receiving a request through phone or online. Deactivation is done within 1 hour, which requires a password or pin to unlock.	Instant activation and deactivation through a credible smartphone lapp or website
Protection	Password or PIN	Username and Password
Application Process	Complex application process as credit bureau approval is required	Simple application process

 

Which is the better alternative - Credit Freeze or Credit Lock

 
The security mechanism of a credit lock is similar to a credit freeze, including limitations to credit report access. This implies intruders will not be able to gain access to your credit file. However, this also means that even legitimate access as required by lenders is denied. Hence, know that if you choose credit freeze or credit lock, lenders cannot access your credit information and credit score for determining your creditworthiness for availing potential loans or credit.

However, one can undertake instant activation and deactivation of a credit lock as compared to the time-consuming credit freeze mechanism. So, if you need to make regular applications for loans and other credit, it would be more convenient to opt for credit lock when compared to a credit freeze, though credit lock is a paid service.