Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud.
In the credit origination process, access to a credit report is critical for a lender to make a risk assessment. Because a credit freeze effectively stops access to the credit report, it places a block in the process of issuing credit.
Lenders typically require access to the borrower’s credit report before issuing a loan in the borrower’s name. If lenders cannot see the borrower’s credit report, it is unlikely the lender will issue a loan in the borrower’s name.