What is a credit freeze?

A credit freeze is a security measure that restricts access to a consumer's credit report. This action is typically taken to protect individuals from identity theft and fraud. When a credit freeze is in place, lenders cannot access the consumer’s credit report, making it much more difficult for identity thieves to open accounts in the consumer's name.

The process is designed to provide consumers greater control over their personal information, ensuring that only those whom they grant access—by lifting the freeze for specific lenders—can view their credit history. This measure does not affect the consumer's credit score or existing credit accounts; it simply limits access to sensitive information until the freeze is lifted.

In contrast, the other options do not accurately describe a credit freeze's function: it is not a method for lowering interest rates, it does not directly eliminate debt, and it also doesn’t refer to a temporary suspension of all credit accounts. Thus, understanding the specific purpose and implications of a credit freeze is essential for consumers looking to safeguard their financial identity.