Glossary
Credit freeze
A free lock you place on your credit file that blocks new lenders from accessing it — the strongest defense against identity-theft fraud.
A credit freeze restricts access to your credit report, so a thief cannot open new accounts in your name because lenders cannot pull your file to approve them. It is free to place and lift at all three bureaus, does not affect your credit score, and does not stop you from using existing accounts. The one trade-off is a small extra step: you must temporarily lift the freeze when you legitimately apply for new credit. It is separate from a fraud alert, which is a lighter-touch warning rather than a hard block.
Related terms
- Promissory note The legal document where you promise to repay a loan under specific terms — amount, rate, schedule, and what happens on default.
- Fixed rate An interest rate that never changes for the life of the loan — your payment is the same every month.
- Secured A loan backed by an asset the lender can seize if you default — a house, a car, or a deposit.
- Subprime loan A loan made to a borrower with a low credit score, priced with a higher rate to offset the added default risk.
- Co-borrower A second person who shares ownership of what a loan financed and is equally responsible for repaying it from the start.
- Unsecured A loan that requires no collateral — approval rests on your credit profile and income.