What is the purpose of a credit freeze?

A credit freeze is designed specifically to prevent identity theft. When a consumer places a freeze on their credit report, it restricts access to that report for potential creditors. This means that even if a thief obtains personal information, they would be unable to open new credit accounts in the consumer’s name because lenders cannot access the credit report while it is frozen.

By implementing a credit freeze, individuals can protect themselves from unauthorized credit applications, reducing the risk of financial fraud. This is particularly important in an era where identity theft is prevalent, as it acts as a proactive measure to safeguard one’s financial identity.

The other options do not align with the fundamental purpose of a credit freeze. Lowering credit scores, granting access to creditors, or analyzing creditworthiness are not objectives of a freeze. Instead, a freeze is solely focused on protecting consumers from the misuse of their credit information.