How to Withdraw or Cancel a Loan Freeze
You’ve heard this advice a hundred times: Freeze your loan. At a time when it seems like hackers are hacking into another company every other day, this is one of the easiest ways to keep your finances safe.
Credit bureaus are required to offer a free credit freeze from 2018 , which makes it fairly easy to request a freeze on every new incident. Just a few clicks online can help you make sure no one can get a new loan in your name (except you, of course).
But what if it’s time to apply for a new credit card? Maybe you want to buy a car or a house? Your new homeowner or employer may also want to check your credit history.
Here’s what you need to know if you need to cancel or cancel the loan freeze.
What is the difference between withdrawing and canceling a loan freeze?
If you want to open a new line of credit, apply for a loan, rent an apartment, apply for a job, or otherwise make your credit report available, you can temporarily cancel or “unfreeze” your loan. Tell the credit agency for how long you want to lift the moratorium; after this period, freezing takes effect again.
On the other hand, when you cancel the credit freeze, it’s all over. Your loan file is again available for regular inquiries from lenders.
Does the loan freeze expire?
The credit freeze is in effect forever until you request a temporary cancellation or cancellation of your reservation.
Do I have to contact all lending agencies to unfreeze the credit freeze?
If you cannot figure out which credit agency a potential lender or employer is using, yes: if you have set up a freeze on more than one credit agency, you must contact each of them individually to lift the freeze.
How long does it take to cancel the loan freeze?
This can usually be done over the phone or over the Internet in about 15 minutes. Credit reporting agencies are required by law to remove your lock within one hour of your request.
Can I specify which lenders I want to have access to my credit report during the lift?
Yes. You can specify the period of time for which you want to remove the loan freeze, or you can grant one-time access to your loan files to certain companies.
If I want to temporarily unfreeze my loan, how long do I have to do it?
It depends on who is checking your credit. In most cases, a week should be enough. It is recommended to consult with the lender, lender, employer, etc. al. and try to understand when they will be doing the credit check so you can be sure you are making enough time.
How much does it cost to cancel or withdraw the loan freeze?
From 2018 it’s free for everyone.
What happens if I forget to remove or cancel the lock and the lender asks for my file?
The lender will receive a notification that your file has been frozen.
Okay, I’m ready to cancel or cancel the credit freeze. How to do it?
Contact each agency where you have frozen your loan. Use the PIN you created when setting up Freeze to unfreeze the file on their website, call them or mail them in. (Note: Equifax does not require a PIN.)
Whichever method of contact you choose, you will most likely need to provide your name, address, Social Security number, date of birth, identification, and your PIN.
If you decide to remove the mail block, check with each agency for the information they require.
The links to each credit bureau below lead directly to their credit freeze portals:
- Equifax
- TransUnion
- Experian
- Innovis (lesser known credit reporting agency)
This post was originally published in 2017 and was updated on April 1, 2020 by Lisa Rowan. Updates include the following: Validated links for accuracy; function image changed; revised first three paragraphs; updated national policies are everywhere.