What happens to the borrower's credit when a Credit Freeze is applied?

When a Credit Freeze is applied, it restricts access to the borrower’s credit report, meaning that no lenders or creditors can view it unless the freeze is lifted. This measure is often used to protect against identity theft, as it prevents new credit accounts from being opened in the borrower's name without their consent.

Once the credit is frozen, the borrower themselves cannot apply for new credit until they temporarily lift the freeze, which means that any potential creditors are unable to access the credit report. This is a crucial step in safeguarding personal information, as even legitimate inquiries into credit reports (like those made when applying for a loan) will be blocked until the freeze is removed. This ensures that unauthorized parties cannot misuse a borrower’s information for fraud.