64
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 64 • FL-2102371-Personal Finance and Money Management

What is the advantage of creating a file freeze of your credit report?

Answer
A
Credit freezes also freeze your credit score.
B
Credit freezes prevent someone from using your credit cards.
C
Credit freezes mean you do not have to check your credit report every year.
D
Credit freezes block access to your credit report, keeping new accounts from being opened in your name.

Explanation

A credit freeze restricts access to your credit report, making it harder for someone to open a new credit account in your name. It does not freeze your credit score or stop someone from using existing credit cards, and you should still check your credit report regularly. Therefore, the advantage is that it blocks access to your report to help prevent new accounts from being opened fraudulently.

AI-written and checked against the verified answer.

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