What does Credit freeze mean?

A credit freeze is a type of service offered by credit card bureaus to their customers. The freeze consists of locking down a customer’s credit, preventing the opening of new accounts on the same credit line. This is a useful service when it comes to identity theft, it is often the best solution if it has been suspected or even detected.

Credit bureaus usually charge a fee for using this tool, unless the customer has actually been a victim of identity theft, then the establishing of the credit freeze is for free. There is a fee for thawing‘ the freeze also, in case the customer has decided that the threat was over and he or she wishes to resume and open a new account.