Identity theft and credit fraud are sad realities of the modern world. Luckily, there are steps you can take to prevent potential fraud if you have lost your ID documents, been the victim of a data breach, or otherwise had your personal details compromised. One of these is known as ‘credit freezing’, where credit bureaus will actively flag your credit profile to warn lenders there may be a fraudulent application. While credit freezing is a useful tool for fraud prevention, you may need to apply for credit legitimately after you have put a credit freeze in place. Today we will look at how to deal with this circumstance, using TransUnion as an example.
How to Temporarily Unfreeze Your TransUnion Credit Report?
If your credit profile is frozen with the bureaus, such as TransUnion, how do you temporarily unfreeze it to make a credit application without losing the full protection it offers?
Typically, lenders or the bureau itself will contact you if an application is made in your name and your profile is flagged as frozen. They will notify you that the profile is locked. You will need to apply to the bureau directly to lift the ban, either temporarily or permanently. This can typically be done online through their website.
You will be able to choose how long the freeze will be lifted for, or if you want it to be lifted permanently. They will need to verify your identity before doing so, of course, but this should be a simple matter.
You will follow the same process if it turns out another institution has temporarily frozen your profile. This is usually only done if the institution has had a data breach you may not be aware of. They offer this service, paid for on their end, as a measure to offset the potential risks of the data breach. While you should be informed when this happens, it is easy to miss a notification.
Remember that a credit freeze does not mean there is something ‘wrong’ with your profile and you can’t apply for credit. It just means that your profile is on a ‘watchlist’ and needs a little extra care and vetting before they allow credit applications to proceed.
How Long Does It Take To Lift A Credit Freeze With TransUnion?
Typically, credit bureaus like TransUnion will lift a credit freeze very quickly. It could even be done on the telephone with you in some cases! However, we would advise leaving 3 business days between unfreezing your profile and making the credit application if possible. This ensures they have time to process your application to lift the credit freeze and ensure you do not encounter issues.
How Many Times Can You Unfreeze Credit?
As credit freezing is a preventative, proactive measure, there is no limit on the number of times you can freeze and unfreeze your credit. However, it can be an annoying extra step to go through if you are in the midst of a credit application cycle yourself. You will need to weigh up the pros and cons of removing the credit freeze altogether.
If you do not see yourself needing quick credit any time soon, then many people choose to enact a credit freeze as an extra layer of security on their credit report. Again, there are pros and cons to taking this kind of proactive measure. While it can make your own credit applications more of a hassle, it can also stop fraudsters in their tracks.
How Long Does A Temporary Credit Freeze Last?
How long a temporary credit freeze will last is highly dependent on who applied for it, and the terms of the service they used. When data breaches occur, many South African lenders will automatically enact a 6-month credit freeze on your accounts to give you a buffer to secure your information. However, for credit freezes you choose, you will be able to set the terms as you wish, or from a preset list of possible freeze periods- typically 3 months, 6 months, or a year for temporary freezes. A permanent freeze you have to lift every time until you authorize its removal, is also an option.
Freezing your credit is a smart idea in the wake of any potential data breach or security incident. While it may be slightly less convenient to have to lift the freeze or authorize it to be lifted upon the lender’s inquiry, it also provides you the peace of mind of knowing no fraud can occur in your name. While you may have no say in a temporary freeze placed by the lender in the event of a data breach, you can always opt to proactively freeze your credit if you have lost important documents, or simply want the extra security of knowing you have the final say in who accesses your credit report.
