Short answer: a security freeze stops a credit bureau from sharing your report, so a lender checking it for a new loan cannot see it, and may treat your application as incomplete (15 U.S.C. 1681c-1(i)). You do not have to remove the freeze for good. Ask the lender which bureau it uses, lift the freeze at that bureau for a set period, apply, and let it come back. Lifting is free and, if you ask by phone or online, must happen within an hour (15 U.S.C. 1681c-1(i)(3)).
What the law gives you
- Free to place and to lift. A bureau must place a freeze free of charge, within 1 business day of a request by toll-free phone or secure online means, or 3 business days by mail (1681c-1(i)(2)). Removal is also free: within 1 hour of a phone or online request, or 3 business days by mail (1681c-1(i)(3)(C)).
- Temporary lifts. You can ask the bureau to remove the freeze for a period of time you choose (1681c-1(i)(3)(E)).
- It stays until you remove it. A freeze remains in place until you ask for it to be removed (1681c-1(i)(3)(C), FTC).
- No effect on your score. A freeze does not affect your credit score (FTC).
Step by step when you apply
- Ask which bureau. The FTC suggests finding out which bureau the lender will use and lifting the freeze only there (FTC). If the lender cannot say, lift it at all three.
- Lift it for a set period. Choose a period that covers the application and any follow-up questions, by phone or online so it takes effect within an hour (1681c-1(i)(3)(C) and (E)).
- Apply after the lift has taken effect. If the lender's check hits a frozen report, it may treat the application as incomplete (1681c-1(i)(3)(D)).
- Let it come back on. With a temporary lift the freeze returns when the period ends; if you lifted it without an end date, put it back once the lender has checked (FTC).
Example only: you plan to apply on a Tuesday morning. You ask the lender, it says it checks one bureau, and you lift the freeze there online at 9:00 for seven days. By law it must be lifted by 10:00 (1681c-1(i)(3)(C)). You apply at 10:00, and the freeze returns after the seventh day without you doing anything. Within 5 business days of placing a freeze, each bureau must tell you how to remove it, including how it will verify you (1681c-1(i)(2)(B)); keep that information where you can find it.
What a freeze does not block
The federal freeze has exceptions (1681c-1(i)(4)). Among them:
- Companies you already have an account with can still review it, including for account maintenance and credit line increases, and collectors for those accounts can still get your report.
- Prescreened offers of credit, the kind that arrive in the mail, can still be made.
- You can still get your own report or score, and credit monitoring you signed up for keeps working.
Freeze, fraud alert, or both
A fraud alert does not block your report; it makes lenders verify your identity before granting new credit, and you can have one while a freeze is in place (FTC). If someone has already used your identity for a loan, start with a loan taken out in your name. To check your reports before you apply, see check your credit report before a loan.
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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.