A credit freeze can protect your report from a new account application you did not authorize. It can also get in the way when you apply for credit yourself. You have the right to lift the freeze for free, either for a set period or permanently. The key is to make the right report available before the business tries to check it.
Why a freeze can stop an application
A security freeze generally prevents creditors from accessing your credit report to open a new account. That makes it harder for someone to open credit in your name, but it can also prevent a creditor from reviewing your own application. If the business cannot get the report it needs, the application may be delayed or unable to proceed.
Equifax, Experian and TransUnion each maintain a separate credit file. A freeze at one company does not automatically freeze the other two, and lifting one does not change the others. You must contact each company whose report you want to make available. According to USAGov, placing and lifting a freeze are free at all three nationwide credit reporting companies.
A freeze does not seal your file from everyone. The Consumer Financial Protection Bureau says you can still review your own report, and certain others can access it, including creditors on accounts you already hold and companies you have hired to monitor your credit.
Choose a temporary lift or permanent removal
A temporary lift makes your report available for a period you choose. When the period ends, the freeze returns automatically. For a single credit application, this lets you make the report available without having to remember to place a new freeze afterward.
The North Carolina Department of Justice says a week is usually enough time for a business to check a report. The actual window can depend on when the business plans to review your application. You can ask how long it expects the review to take before choosing your dates.
Permanent removal is different. It leaves the report unfrozen until you request a new freeze. If you want the protection to resume after one application, check that you are requesting a temporary lift rather than permanent removal.
Find out which report the business needs
Ask the creditor which credit reporting company or companies it plans to use. If it will check only one, you can limit the lift to that company. The other frozen reports can remain protected. If the business cannot tell you which report it will use, you may need to lift the freezes at all three to avoid a blocked credit check.
Ask when the business expects to request the report, too. Opening a report well before the application may leave it available longer than necessary, while a window that closes too soon could delay the review. Keep a record of the company, dates and confirmation information for each request.
Employment is a separate question. The CFPB says the federal law providing free security freezes does not cover requests for reports for employment, tenant screening or insurance purposes. Do not assume that the rules for a credit application work the same way in those situations. Ask the business and the credit reporting company how the request will be handled.
Allow time and gather your information
For an online or phone request, a credit reporting company must lift a freeze within one hour. For a request by mail, it must do so within three business days, according to USAGov. Those time frames make the request method important when an application has a deadline.
The process and identity checks can differ by company. Before starting, check the company's current instructions and locate any PIN or password associated with your freeze. If you cannot find it, contact that company directly and ask how to verify your identity or recover access. Do not assume the same credentials or recovery steps apply at all three.
Before you submit a lift request, work through these questions:
- Which credit reporting company will the creditor check?
- What dates should the report be available?
- Do you have the PIN, password or other information the company requires?
- Have you allowed enough time for the request method you plan to use?
If the lift does not appear to be in place when expected, contact the credit reporting company to check the request. You can also consult the Federal Trade Commission's guidance or your state attorney general's consumer resources for further information. State rules may differ, so check the guidance that applies where you live.
Know the difference between a free freeze and a lock
Credit reporting companies may also offer credit locks, sometimes for a fee. A lock and a security freeze are different services. The CFPB says locks are no more effective than free security freezes, so a paid offer should not be assumed to provide stronger protection.
When you request a temporary lift, check that you are managing the security freeze if that is the protection you placed. You do not have to pay to lift a freeze at any of the three nationwide credit reporting companies. Once your chosen window closes, the temporary lift ends and the freeze returns.
Please seek a professional. This article is general information, not financial, tax or insurance advice. Please seek a licensed financial, tax or insurance professional about your own situation.
