After one of the top three credit bureaus lost a large amount of data, many consumers realized the need to freeze their credit reports for protection from identity theft and fraud. According to Credit Sesame.com, the millennial has the highest freezing rate of 12.2% of freeze funds in their account. Silent Generation – those born between 1925 and 1942 – have the lowest possibility of freezing their credit reports.
Freezing your credit report or adding a security freeze will block your credit report to inquires from new businesses. If your credit report is frozen and the thief tries to apply for a loan on your behalf, the application will be rejected because the company cannot check your credit. Freezing your credit report from all three major credit bureaus offers the best protection.
The Cost of Freezing Your Credit Report
Now it’s free to freeze and unfreeze your credit report. Under the new law, credit bureaus – including the three major credit bureaus Equinox, Experience and Trans Union – allows you to freeze or unfreeze credit freely. Before this law took effect, the credit bureaus charged up to $ 15 to freeze or unfreeze credit reports. The new law requires credit bureaus to cancel freezing for one hour as long as you send requests online or by telephone.
The credit bureau has its own locking / unlocking feature that can easily confuse consumers with frozen credit. Subscriptions can be tempting because they are often advertised with other easy-to-use credit services such as credit monitoring or additional credit reports. However, the use of a credit bureau lock service can bind you to requirements and provide less legal protection than if credit is periodically frozen.
When do You Have to Unfreeze Your Credit Report
Unfreezing of credit report, also known as thawing in the credit industry, is temporarily left frozen for a certain period of time. In this way, you can put your application in a short window before your credit freezes automatically. Permanent revocation of credit freeze is called lifting the credit freeze. You will specifically ask to add a credit freeze if you want to protect your credit from an illegal credit request.
You must unfreeze your credit report when preparing to apply for a credit card or loan. With freezing in place, the credit card issuer or lender cannot pull your credit report to determine whether you are eligible for a loan. And without your credit report, your application can be rejected.
Reasons Why You Need To Unfreeze Your Credit Report
It’s a good idea to unfreeze your credit report before going in search of a house or apartment. Regardless of whether you rent or buy, you are likely to undergo a credit check. The utility companies also checks your credit when you set up new services after moving
Buying a new phone also requires a credit check, unless you want to prepay for your phone. Most cell phone service providers allow you to pay for your new smartphone without interest and in installment. But first, they check your credit to understand how much you have to pay. This also applies to non-prepaid cellular service rate.
If you are looking for a job immediately or are on a trip for promotion, unfreeze your credit report. You most likely see your working credit check for financial and upper-level managerial positions or the position where you spend a lot of money.
Because you cannot predict what credit report you need for a business, you must unfreeze all three. Make sure you have enough time to complete the application procedure before freezing your credit report again.
Unfreeze Your Credit Report | Reasons Why You Need To Unfreeze Your Credit Report
You have few options when unfreezing your credit report. You can either do it online, by phone or mail. Unfreezing credit report online or by phone is the fastest procedure and option.
Make sure to have the PIN given to you when you first initiated freezing your credit report. However, if you lose your initial PIN, you need to request for another PIN by mail attaching proof of ownership alongside. This however will slow down your application process. Apart from this, unfreezing your credit report is less stressful and simple. Less than 10% of people who unfreeze their credit report have trouble with the process.