• A credit freeze blocks access to a child’s credit report, helping prevent fraudulent accounts in a child’s name.
• Children with frozen credit can generally still become authorized users on a parent’s credit card.
• A credit freeze doesn’t prevent children from saving and investing in vehicles such as 529 plans or custodial accounts.

Americans lost around $16 billion to fraud in 2025, the highest amount on record and a year-over-year jump of 25%.¹ As costs continue to climb from imposter scams and other types of fraud, protecting your finances should also cover best practices for both younger children and teens.

Minor children can be especially susceptible to identity theft because fraud may go unnoticed for years potentially until they apply for their first credit cards.² During that time, potential fraudsters with access to stolen Social Security numbers or other personal information could open new lines of credit or apply for and collect government benefits in children’s names.³

Fraud can take both online and offline with one recent report of stolen U.S. postal mail leading to more than $12 million in losses.⁴ Teens in particular can be at risk for online fraud, considering they now average more than 8.5 hours per day on screens.⁵ Kids that stay actively engaged online are also at a greater risk of being contacted by cybercriminals.⁶

Here’s how a credit freeze, which restricts access to a child’s credit file, could help protect them and their families from financial stress — and build healthy money habits.

What does a credit freeze do?

More than half (55%) of U.S. families whose children were subject to identity theft went on to freeze their child’s credit.⁷

A credit freeze prevents lenders and other creditors from accessing a person’s credit file, which could help stop an identity thief from opening new accounts using that name. Without the credit report, the lender can’t decide whether to approve the application.⁸

The freeze is free at the three major credit reporting bureaus and can be temporarily lifted when access is needed. A parent or guardian can request a freeze for children under 16. If the child doesn’t yet have a credit file, the credit bureau can create a record specifically to freeze it and help protect against identity theft.

A free credit freeze is different from a credit lock, which is typically a paid service offered by credit bureaus. A credit lock also restricts access to a person’s credit file, but consumers can generally turn the lock on or off instantly. By comparison, placing or lifting a credit freeze requires a request to the credit bureau.⁹⁹

A credit freeze can keep outsiders from opening car loans or credit cards in your name; however, because it’s tied to one specific name, it will also block any legitimate applications you may want to place.¹⁰

When your child is ready to apply for credit on their own or make another financial decision that requires a lender to perform a hard credit check (also known as a hard inquiry), the freeze would need to be lifted beforehand.¹¹

Setting up a credit freeze requires contacting the three U.S. credit bureaus individually — Experian, Equifax, and TransUnion — depending on where you want it applied. A bureau will generally apply the changes within a few days or sooner, depending on how you get in touch. A credit freeze will stay in place until you contact the credit bureau to have it lifted.¹²

If you know a lender or perhaps a landlord is going to use a specific bureau for a credit check, you have the option of temporarily removing the freeze at that one bureau rather than having to contact all three.¹³

How does a credit freeze affect authorized users?

Parents often add children as authorized users to their existing credit cards, which can help build a child’s credit history before they get their own card.¹⁴ Card issuers generally don’t perform a hard credit check to add an authorized user, so a child typically can be added even if their credit is frozen.¹⁵ Be sure to check if your financial institution has a minimum age requirement for an authorized card user.

Read more: How to build credit

Being an authorized user allows the child to make purchases, but they are not legally responsible for paying the credit card balance — that responsibility remains with the primary account owner. Parents can track how much their child is spending — along with when and where — creating opportunities for open discussions about managing finances individually and as a family.

Having a teen or college-aged child as an authorized card user also gives them a safety net in case of an emergency, such sudden car trouble or an urgent-care bill. Since Gen Z credit card owners typically have lower credit limits than other age groups, having them as authorized users on a parent's card can provide an extra cushion for unexpected expenses.¹⁶

Read more: 5 terms to know to use credit cards responsibly

Kids get time to learn money

Having a credit freeze in place can be an opportunity for parents and children to talk more about how credit works and the mechanics of how to keep money safe from fraud.

While more U.S. high schools have added personal-finance courses to their curriculum, additional learning from a parent could set kids up for a more confident future. More than three-quarters of Americans (77%) say they didn’t feel they understood how money works until age 18 or later, according to Empower research.

How to maximize children’s finances with a credit freeze in place

A credit freeze restricts access to a child’s credit file, but that doesn’t prevent them from saving and investing. Families still have plenty of ways to get their kids familiar with money and start building financial skills — even if their credit is frozen.

Investing for kids can also provide avenues for children or teens to learn about how stock buying and selling works (via a custodial brokerage account), how to save for retirement (through a Roth IRA or Trump Account), and how taxes can affect education costs (such as with 529 accounts).

Younger investors have time on their side: With decades before retirement or other big financial milestones, children have more time to see potential benefits from compound growth.

A credit freeze can provide protection against fraud without getting in the way of opportunities for kids to save, invest and build financial knowledge.

One step at a time

Consumers can't guarantee that they won't be affected by fraud, though getting a credit freeze in place for children is one place to start. This proactive step can help kids gain more knowledge and experience with financial topics first before taking charge of their credit file — and the impact it can have on their financial future.