Do you want to unfreeze your credit report? The good news is that, depending on your situation, it’s not always necessary to freeze your credit report. If you’re not sure whether to freeze or unfreeze your credit report, here’s what you need to know about both options, including how to get started if you choose the latter.
The credit reporting system can seem like an endless network of numbers and letters that, while it affects most American citizens, doesn’t always make sense to everyone. While it’s important to stay on top of what you can do to build good credit, it’s also important to know when errors are on your report, which you can fix by unfreezing your credit report. Here’s everything you need to know about unfreezing your credit report.
What is Freezing?
Creditors freeze many credit reports to prevent ID theft. But if you’re looking for a new job or applying for loans, you may need to unfreeze your credit report to pass background checks. The process of unfreezing your credit report is called thawing and can be done in one of two ways:
1) Through a third-party consumer reporting agency (CRA).
2) With each CRA directly. For both processes, you must have proof of identity before beginning so that all parties involved are certain they are working with the correct individual (s).
Below, we’ll discuss how you can thaw your credit report through both methods. Thawing Through a Third-Party CRA: If you believe there may be inaccurate information on your credit report—or want to freeze/thaw your credit report for other reasons—you will need to contact one of three different organizations. Those include Experian, TransUnion, and Equifax.
Each company handles requests differently, but generally, you must fax or email them documentation that proves who you are. After doing so, these organizations will run verification checks to ensure their customers are indeed who they say they are before further action on freezing/unfreezing requests.
What is Unfreezing?
This should sound like a weird, made-up term, but it’s pretty common—and really important if you’re trying to get credit. When your credit report is frozen, no one can access it without your permission. That’s usually great because it helps prevent fraud or identity theft; however, it can be very inconvenient when you need credit yourself (say for a loan). Luckily, unfreezing your credit report is easy and will only take about 10 minutes of your time. Here are three things you need to know about unfreezing your credit. You should know that there are three different credit bureaus: Experian, Equifax, and TransUnion.
All three of these companies store different information on people across America. While some information is shared across all three bureaus (like whether or not you have an account in good standing with a particular company), other information isn’t necessarily accessible by all agencies at once. So how do you decide which agency to freeze or unthaw? Choose whichever bureau contains information about accounts that might need freezing/unfreezing at any given time.
When Can I Freeze My Credit File?
Freezing your credit file is a good way to prevent identity theft. As long as your credit file is frozen, no one can check it or open an account in your name. Freezing isn’t typically free—but you do have options. Depending on where you live, it might be possible for you to freeze your file for free, either through a government program or with a company that does business in your state. The catch is that unless you find out before fraud occurs, you’ll have to pay up each time you want unfreeze access again. If you know ahead of time, though, you can take advantage of freezes that are essentially permanent. It’s a great idea if you think many issues could arise over time and figure it would be worth paying now to avoid going through them later down the road.
These permanent freezes tend to cost money upfront but usually are cheaper over longer periods. In any case, make sure any agency offering these services spells out all fees and has consumer-friendly policies in place before moving forward.
Is There a Fee for Freezing my File?
Unfreezing your credit file is one of the best ways to prevent new accounts from being opened in your name. After all, if potential creditors can’t access your report, they won’t be able to open new accounts in your name. So how exactly do you freeze your credit file? And what does it cost? What happens if I want or need a copy of my credit report while it’s frozen? How long will my freeze last? When I thaw my credit file, how long will it take to get another copy of my report? This guide answers all these questions and more. Whether you’re looking into freezing your credit because someone stole your identity or someone wants to apply for credit using yours as collateral, we’ve got everything you need.
Why Should I Consider Freezing My Credit File?
The purpose of a credit freeze is to block any access to your file, which makes it significantly more difficult for identity thieves to open new accounts in your name. Until you unfreeze your report, even you will be blocked from opening new lines of credit. It may not prevent every instance of fraud, but all consumers must take steps to protect themselves and their assets. That said, freezing your credit file does come with some downsides.
For one thing, each time you freeze or unfreeze, it can cost between $5 and $10 – and sometimes more – depending on where you live and who does it for you. Also, there are instances when you might want access to your credit score without having to go through an official freeze. A good example would be when you’re shopping for a mortgage. As long as you do so sparingly and pay off your bills on time, it shouldn’t have much impact on your overall financial health.
