What is the purpose of a security freeze on credit reports?

The purpose of a security freeze on credit reports is primarily to prevent identity thieves from opening new credit accounts in your name. When you place a security freeze on your credit report, it restricts access to that report for new credit applications. This means that even if a thief has your personal information, they would typically be unable to open accounts without your consent since creditors need to review your credit history before approving new credit.

A security freeze does not block access to all personal credit information absolutely or enhance visibility into your credit history. Instead, it's a tool to protect against fraudulent credit activity while still allowing existing accounts and certain essential inquiries to proceed. The freeze can easily be lifted when you need to apply for new credit yourself, allowing legitimate checks while keeping unauthorized access at bay.