Freeze and Unfreeze Credit

It is crucial to protect your credit since your credit scores may have a significant influence on many aspects of your financial life. If you wish to protect your credit file from being seen by those without permission, one security step you may take is known as a credit freeze. Placing a freeze on and removing a freeze from your credit report is not too complicated. Still, it is helpful to understand how the process works to determine when it is appropriate to take such action. So, how to freeze and unfreeze your credit?

What Is a Credit Freeze?

You can limit who may access your credit reports by placing a credit freeze, also known as a security freeze. By placing a freeze on your credit reports, you may reduce the risk of identity thieves applying for new credit in your name, which would require a thorough investigation of your credit history.

However, placing a freeze on your credit report does not make it such that anybody and everyone can no longer access your credit history. Even if you freeze your credit report, the firms with whom you already have an established credit connection will still be able to access your credit history. In addition, government entities who are carrying out a search warrant or a court order to get information will also have access to your credit report.

How a Credit Freeze Works

You are effectively notifying the three big national credit agencies, Equifax, Experian, and TransUnion, that you want to ensure that everyone can see your credit reports when you freeze your credit with them. When it comes to who may and who cannot see your credit file while a freeze is in place, there are certain exceptions to the rule.

You have complete control over how long a freeze on your credit report is in effect and may decide whether to remove it at any time. Because of a change in the legislation that took effect in 2018, placing a freeze on your credit report does not cost you anything. In the past, you had to pay a charge to freeze and unfreeze credit.

Freezing your credit does not have a negative effect on your credit score and will not prevent you from receiving your free yearly credit reports. If you decide to apply for loans or credit cards, however, you will have to remove the freeze on your credit report to give potential lenders access to your file. However, you do not need to remove a credit freeze to submit an application for a job or rent an apartment.

How to Freeze Your Credit

If you wish to freeze your credit, you must contact each of the three main credit agencies individually to do so. This is how you can get in touch with them:

• Equifax: Online or by phone at 800-685-1111
• TransUnion: Online or by phone at 888-909-8872
• Experian: Online or by phone at 888-397-3742

To freeze your credit, you must provide your name, address, date of birth, and Social Security number, in addition to any other identifiable personal information, to each credit bureau. However, to freeze and unfreeze your credit report with Experian and TransUnion, you must create a personal identification number (PIN). Equifax does not need this.

You may lock down each credit report by placing a freeze on your credit, a free service that must be requested from all three credit agencies. This a reminder that the freeze will remain in effect until you manually remove it.

How to Unfreeze Your Credit

You could decide at some time in the future that you do not need the credit freeze anymore. If you wish to apply for a mortgage, credit card, or any other kind of loan, you will need to have the freeze on your credit temporarily lifted.

You will need to contact each of the three credit agencies separately if you wish to unfreeze the freeze on any of your credit reports. You will need to submit the Personal Identification Number (PIN) you established previously while working with TransUnion and Experian.

When you ask a credit agency to release your credit freeze, it is required to do so within a certain amount of time after receiving your request. Requests to lift the freeze must be completed within an hour, whether made over the phone or online. If you send in your request over the mail, the freeze on the account must be removed by three business days after it is received.

Pros and Cons of Freezing Your Credit Report

Pros

• It provides protection for your credit report, assisting in preventing identity theft and fraud.
• Online, you can freeze or unfreeze your credit effortlessly and swiftly.
• Your credit score won't take a hit if you freeze your credit.

Cons

• A credit freeze will restrict access to your credit information, but it won't prevent it entirely.
• Before applying for loans, you will need to unfreeze your credit.