What effect does a credit freeze have on an individual's credit report?

A credit freeze is an important security measure that protects an individual's credit report from unauthorized access, primarily to prevent identity theft. When a credit freeze is in place, potential lenders cannot view the consumer's credit report, which effectively prevents new credit accounts from being opened in the individual's name without their consent. This means that even if someone obtains personal information fraudulently, they won't be able to secure loans or credit lines because lenders won't have access to the credit report to evaluate the risk associated with lending.

While a credit freeze does not enhance a credit score, allow unlimited access by lenders, or reduce overall debt, its primary function is to restrict access. This mechanism ensures that individuals retain control over their financial information, thereby safeguarding their identities and credit histories against fraud.