What is a credit freeze?

A credit freeze or security freeze is a method by which a consumer blocks access to a credit report. The primary purpose is to prevent lenders from accessing someone's report, which prohibits identity thieves from getting credit in the consumer's name, according to the Federal Trade Commission.

The consumer is still able to open new credit accounts and take other actions resulting in credit checks, but he must temporarily remove the freeze to grant lenders access, reports the FTC. The consumer can also still receive a free annual credit report. While a deterrent, credit freezes do not prevent thieves from gaining access to existing accounts.