Understanding the Credit Freeze

According to most experts, the majority of credit cardholders are unaware of the option to execute a credit freeze or a credit lock. For those that have heard of these terms, they do not fully understand what is actually “frozen” when a credit freeze is implemented. For that reason, I thought it might benefit some of my faithful blog readers to learn a bit more about credit freezes.

When you initiate a credit freeze, you are actually preventing others from having access to your credit report. Contrary to popular belief, a credit freeze does not prevent access to your credit card accounts, nor does it stop you from being able to use your credit cards. Therefore, if you have a credit card lost or stolen, a credit freeze is not the step you need to take. Rather, you need to call that credit card company and have the account closed and a new account opened in your name.

Nonetheless, there are benefits to implementing a credit freeze. In addition, you can freeze or unfreeze your credit reports at any time. The main benefit to placing a freeze on your credit report is that it can help you with protecting your identity. After all, if no one can access your credit report, new loans or credit card accounts cannot be opened in your name. Yet, you will still be able to use your current credit cards. Similarly, if you wish to access your own credit report, you can still do so.

Since you can remove a credit freeze at any time, however, you can still apply for new loans and credit cards at any time. All you need to do is temporarily remove the freeze until the lending company has the opportunity to access and review your credit report. After this is completed, you can place the freeze back onto your report. In some cases, you can “unfreeze” your credit report in as little as 15 minutes, though it can take up to five days for this procedure to take place. The length of time it takes to “unfreeze” a credit report depends largely upon the state in which you live.

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