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How to Choose Between a Credit Lock and Freeze to Secure Your Identity

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Credit Freeze vs. Credit Lock to Protect Your Identity
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Both a credit lock and credit freeze can protect your credit report from being used for opening a new account or applying for a loan. If you’ve been victimized by identity theft, both are smart options. However, a credit lock vs. a credit freeze differ in their implementation. So, which one is right for you?

What Is a Credit Freeze?

A credit freeze is a free service guaranteed by law. When you initiate a credit freeze, most of your credit report will be limited. Lenders can’t evaluate your credit report until you lift or thaw the freeze. However, your credit report can still be viewed by companies responding to non-credit applications, your current creditors, debt collectors, and government entities. You can also still view your report if it’s frozen.

You can lift the credit freeze permanently or for a set amount of time if you are applying for a loan or a credit card. This can be as short as a day or a week, whatever you choose. However, with a credit freeze, you’ll have to lift it with each credit bureau individually. All bureaus handle lifting a freeze differently, so follow the appropriate steps for each one.

What Is a Credit Lock?

A credit lock is almost the same as a credit freeze but provides extra features and protections. Additionally, it can also come with a fee. You can initiate a credit lock with Experian, TransUnion, and Equifax:

  • Experian CreditLock is available for $24.99 per month
  • Equifax provides credit locks free to consumers through Lock & Alert
  • TransUnion includes credit file locking for both your TransUnion and Equifax credit files for $29.95 per month

Some features of credit locks include notifications when anyone requests access to your locked credit report, alerts when your information appears on the dark web, identity theft insurance, and fraud resolution. Of course, each bureau offers different services but these additional features can offer you further protections.

How Do I Initiate a Credit Freeze vs. a Credit Lock?

Initiating a Credit Freeze vs. Credit Lock
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Initiating a credit freeze or a credit lock online can be as simple as a toggle on or off feature. You must sign up with each credit bureau to do so. You can also call each credit bureau or request a freeze or lock by mail. If so, you will need some accompanying identifying documents and information such as a recent utility bill, social security number, all your addresses in the last two years, your date of birth, and a government-issued ID.

When to Use a Credit Freeze vs. Credit Lock

If you suspect that you’ve been a victim of identity theft or your information has been compromised, both a credit freeze and credit lock are good options. However, a credit freeze is probably more appropriate if you don’t need additional features or don’t want to pay for a subscription. A credit freeze is also your only option if you are freezing the credit report of a minor. On the other hand, a credit lock can provide you additional protections and alerts. This can make dealing with the aftermath of identity theft more manageable.

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Here’s How to Get The Cheapest Price for a Tesla

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Budget car sales buying a Tesla
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Car sales on a budget don’t have to be boring! Are you dreaming of owning a Tesla, but don’t want to pay full price? The price of a Tesla depends on the model and add-ons, but the average cost ranges from $40,000 to over $90,000 brand new. You can stay on budget by utilizing budget car sales, discounts, and more. So, how do you get the best price on a Tesla? Here’s everything you need to know.

Buy Demo or Leftover Inventory

At the end of the year, car dealerships usually run sales, which works well if you’re on a budget. Car dealerships need to make way for new inventory so last year’s models and showroom demo cars are discounted. Demand for electric vehicles can fluctuate throughout the year, so keep an eye on prices throughout the year as well.

Buy a Used Tesla

Buy a used Tesla
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Many car brands are more affordable used, but used Tesla cars have been almost as expensive as their brand-new counterparts. This seems to changing in recent years though. The good news is that used Tesla cars will hold their value well so buying used is still a good investment.

Get a Federal Tax Credit

If you buy a Tesla, you may qualify for a clean vehicle tax credit. This can help you offset the cost. There are several steps you need to take to receive your tax credit. You could be eligible for up to a $7,500 credit. According to the IRS, at the time of sale, the seller must give you information about your vehicle’s qualifications. Sellers must also register online and report the same information to the IRS. If they don’t, your vehicle won’t be eligible for the credit. You also must meet the AGI requirements to qualify. However, it is important to keep in mind that President Donald Trump has plans to get rid of this tax credit, so this perk may not be around much longer.

Participate in The Referral Program

Tesla Cybertruck
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Tesla has a referral program where you will be rewarded if you refer friends or family and they make their first qualifying purchase using your referral link. Qualifying purchases include the Model S, Model 3, Model X, Model Y, Cybertruck, and Solar panels. According to Tesla, You can receive referrer benefits up to 10 times per calendar year. All referrer benefits will help you earn Tesla credits which can be used on supercharging, a new vehicle purchase, any outstanding balance from a service appointment in the Tesla app, Tesla Shop purchases, subscriptions, and upgrades. Loyalty benefits are also available if you have owned a Tesla and made another purchase.

Buy a Lower-End Model

If you don’t get all the bells and whistles or purchase a lower-end model, you’ll save a good deal of money. The Model 3 is already popular and is the least expensive model in Tesla’s line. You can also consider leasing or financing your purchase to meet your budget needs.

Navigating Budget Car Sales

Before committing to buying a Tesla, make sure to shop around, review your budget, and do your research. With patience, you can find a good deal on a Tesla. Are you in the market for a new car? What model of Tesla are you considering?

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9 Scams That Millennials Are Falling Victim To

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Scams millennials fall for
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According to GoBankingRate, Millennials are falling for scams at a higher rate than other generations. In their survey 35% of millennials have fallen victim to phone scams, whereas only 25% of Gen Xers reported the same. The reason for many millennials falling victim to scams is that they have grown up online and tend to put their trust in digital spaces and they believe in their ability to spot a scam too much. Here are nine common scams that millennials are falling for.

1. AI-Powered Voice Cloning Scams

AI scams
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The FBI recently posted a public service announcement listing some of the ways that criminals use generative AI to trick victims. One common scam is using voice cloning to mimic friends and family, politicians, government agencies, or businesses. The FTC’s 2023 Consumer Sentinel Network Data Book found that about 20% of people targeted by an imposter scam lost money, and the median loss was $800 and government scams led to median losses of over $14,000. If you receive a random call, make sure to validate it before giving out personal information or sending any funds.

2. Romance Scams

Romance scams aren’t just happening on dating apps like Hinge. Scammers are getting more creative and millennials are falling for the scams. You may get an accidental text that says, “Sorry I’m running late. Be there in 10 minutes.” Scammers use these accidental texts to start up a conversation and plant the seeds for a romance scam. You may even be talking to a bot that can send thousands of these messages at a time.

3. Employment Scams

Employment scams millennials are falling for
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If a job is too good to be true it probably is a scam. Millennials are falling for employment scams that have detrimental consequences. Some scammers play the long game and set up interviews, while others advertise easy ways to make money through tasks. Some will steal your personal information and others will pay you a large sum of money upfront and ask you to send a small amount back, stealing your account information.

4. Event Ticket Scams

Beware of purchasing tickets on unverified sites or on social media. Millennials are also falling for scams on established sites like Ticketmaster. However, Ticketmaster will do their best to make it right if you buy tickets that disappear from your account or are fake.

5. Celebrity Endorsement Scams

Thanks to AI, there are many products that claim to be celebrity endorsed but are not. This endorsement might prompt you to buy a product or make an investment that’s a scam. The videos and images produced are deepfakes and can be hard to spot. Do your research before getting caught up in these scams.

6. Text Scams

Most scams start with a text message. Bad actors pose as the post office trying to deliver a package, your bank texting you about suspicious activity, or a credit card company trying to approve a charge. If you receive a random text about a package delivery, don’t click the link in the text. Even if the website that the link goes to looks like your bank’s or USPS, it’s probably a scam to get your information.

7. Crypto Currency Investment Scams

Cryptocurrency scams have skyrocketed as crypto has gained popularity. Scams usually involve fake prizes, contests, giveaways, or early investment opportunities. Bad actors may hack friends’ and family’s social media accounts and send you information about a great crypto investment opportunity.

8. Marketplace Scams

Always read seller’s reviews before making a purchase online and buy on trusted marketplaces that will protect your money. Millennials are falling for scams online where they buy an item online from a fake website or social media like TikTok and then the seller’s profile disappears and they never receive the item or their credit card information is stolen. Not every site online is trustworthy or protects your information. If you are a victim of a scam and you use your credit card, make sure to start a chargeback.

9. Refund Phishing Scams

A new way that scammers are profiting from stolen credit cards is by making a fraudulent purchase from a fake website. The charge will have the website name and email or phone number so when the credit card holder calls or emails to dispute the charge, the scammer will get more personal information.

Scams Affecting Millennials

Just because millennials are in some cases more technologically savvy, doesn’t mean that they aren’t falling for scams especially online. Scammers are getting more sophisticated every day so don’t think that you are immune. If you are the victim of a scam, be sure to report it to local authorities, the FTC, and contact your bank or credit card company.

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