Which statement is NOT true about a credit freeze?

• A. A credit freeze prevents new creditors from accessing your credit report.
• B. A credit freeze can help protect against identity theft.
• C. You can temporarily lift a credit freeze if you need to apply for new credit.
• D. A credit freeze will lower your credit score.

Answer: (D)

Verified step by step guidance

1. Understand the concept of a credit freeze: A credit freeze is a security measure that restricts access to your credit report, making it harder for identity thieves to open accounts in your name.
2. Analyze the statements provided in the problem: Each statement describes a characteristic or effect of a credit freeze. Determine whether each statement aligns with the definition and purpose of a credit freeze.
3. Evaluate the first statement: 'A credit freeze prevents new creditors from accessing your credit report.' This is true because a credit freeze blocks access to your credit report unless you lift the freeze.
4. Evaluate the second statement: 'A credit freeze can help protect against identity theft.' This is true because it prevents unauthorized access to your credit report, reducing the risk of fraudulent accounts being opened.
5. Evaluate the fourth statement: 'A credit freeze will lower your credit score.' This is NOT true because a credit freeze does not affect your credit score; it only restricts access to your credit report.