7 Things to Consider Before Freezing Your Credit That’s why you would need to temporarily unfreeze your credit before receiving approval from a new lender. Your information remains available to existing creditors and debt collectors along with government agencies who may have access due to a court order, subpoena, or search warrant however, any new lenders and creditors are unable to access your credit report. That’s right-putting a freeze on your credit won’t lower or raise your score. When you want to apply for a loan or credit card, you can “thaw” your credit file to allow that institution access.įortunately, credit freezes don’t affect your credit score. In other words, a credit freeze prevents someone else from opening up a line of credit under your name. In most cases, creditors must review a credit report before they grant approval for a new account. Freezing your credit doesn’t limit you from applying for a credit card or taking out a mortgage, but you will be required to personally unfreeze your account to allow access to your credit file before doing so. What Is a Credit Freeze?Ī credit freeze prevents an institution like a loan or credit card company from accessing your credit file. Because your credit score is one of the three main factors that impact your financial health, it’s important to do everything you can to protect your credit. Even if you’re not a victim of identity theft or a data breach, you may want to consider freezing your credit to ensure your information remains as safe as possible. If you’ve ever been involved in a data breach, if someone has tried to steal your identity, or if you’ve lost important documents like your driver’s license or social security card, you’ve probably been told to consider freezing your credit for extra security. This means someone can take out a line of credit or apply for a loan under your name without your knowledge or approval. When sensitive information is lost or compromised, it provides an opportunity for people to pretend to be you. Use this information to make a decision on whether or not you want to proceed with credit freezing.Ĭredit freezes have been an option for over a decade and they’re used for a number of reasons. We have all of the details you need: what a credit freeze is, how to freeze your credit, and the cost and time involved. Still, you may be unsure what exactly a credit freeze truly entails and if freezing your credit is right for you. Perhaps you’ve heard that putting a freeze on your credit is effective protection against credit fraud and identity theft.
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