A good credit score is key when it comes to financial wellbeing. For example, when we apply for credit through loans, mortgages, or credit cards, the process will be much much easier if you have a positive credit score behind you. Lenders will check this immediately to assess your ability to pay back any credit.
However, identity theft is a real issue in the modern world, and people are becoming more cautious about their credit information’s security. One method to protect your credit information is to freeze your credit.
But once your credit is frozen, can it be unfrozen? In this article, we will answer this question and provide you with detailed information on how to unfreeze credit.
If you’ve been the victim of identity theft and would like to know how much credit repair services are, don’t hesitate to contact The Phenix Group, and we’ll be glad to talk you through how to resolve any issues you may be facing!
What Is Credit Freezing?
Credit freezing is a security measure that allows you to restrict access to your credit information. When you freeze your credit, the credit reporting agencies will not release your credit report to any lender or creditor without your consent. This means that no one can open a new credit account or apply for a loan in your name without your approval.
The Advantages of Freezing Your Credit
Freezing your credit is a proactive measure which has several advantages in order to protect your financial security and personal data. Here are some of the benefits of freezing your credit:
Prevent Identity Theft
With a credit freeze, you can stop identity thieves from opening new accounts or credit cards in your name.
Save Time and Money
Credit monitoring services or identity theft protection plans can be expensive and involve a certain amount of bureaucracy. Freezing your credit is a one-time action that costs nothing.
Control of Your Information
You can unfreeze your credit at any time, temporarily or permanently, so that you can control who sees your credit report, and when. Certain credit issues won’t show up on your credit report, like a reaffirmation agreement for student loans might. However, defaults on payments and other poor debt management issues will appear on your reports.
How to Unfreeze Your Credit
Unfreezing your credit is an uncomplicated process which comes into effect almost immediately. Here’s what to do:
Contact Your Credit Reporting Agencies
The first step to unfreeze your credit is to contact the credit reporting agencies where you froze your credit. You’ll need to provide them with identification information to verify your identity.
Specify the Details of the Unfreeze
You can either choose a specific period or a specific lender when unfreezing your accounts. If you want to apply for a loan or credit card, you can specify the lender’s name and authorize the credit reporting agencies to release your credit report to only them. Alternatively, you can freeze your credit completely for a certain amount of time.
Once you have specified the duration and the lender, the credit reporting agencies will unfreeze your credit. It usually takes less than an hour for the credit agencies to unfreeze your credit report. Once your credit report is unfrozen, you can apply for the credit you need.
It’s important you know how long the lender will take to process applications so that you can ensure your credit is unfrozen for the duration of the application. Once you’ve unfrozen your credit, you can refreeze it when you’re ready. This process can be repeated as many times as needed.
To Summarize
Protecting your credit information is crucial in today’s world. Freezing your credit is an effective way to prevent identity theft and protect your credit score. Furthermore, it allows you to manage your credit so you can apply for loans or credit cards at opportune moments, based on your credit activity and the lender at hand.
Worried about whether or not checking your credit score lowers it? Don’t stress–take a look at our recent article!