Is it possible to be preapproved if your credit is frozen

Quick Insights

• Freezing your credit is a proactive measure against identity theft by restricting access to your credit report to help ensure that new credit accounts cannot be opened in your name without your consent.
• While a credit freeze can help protect you from fraud, you may need to lift it before applying for future lines of credit.
• You can unfreeze your credit temporarily for a specific creditor or for a certain period during which you plan to apply for credit.

Freezing your credit can be a useful tool to prevent fraud, but it can impact future credit card applications.

What does frozen credit mean?

Frozen credit refers to when an individual voluntarily restricts access to their credit report to prevent new creditors from viewing it. This action is primarily taken if you suffer or suspect you have suffered from identity theft, but you might also consider freezing your credit as a data breach precaution, to have control over who can access your credit report, to name a few.

When credit is frozen, potential creditors cannot perform hard credit checks, which are essential for approving new accounts, including credit card accounts. However, existing creditors and certain government agencies may still access the report for ongoing activities.

To freeze your credit, you must contact each of the three major credit bureaus—Equifax, Experian and TransUnion. This can typically be done through their websites, over the phone, or by sending a written request.

What you can and cannot do with frozen credit

Freezing your credit can be an effective way to prevent fraud. But does it affect anything else?

Activities you can do with frozen credit

While a credit freeze restricts access to your credit report for new inquiries, there are some other financial activities that aren’t affected. Here are some actions you can still undertake even when your credit is frozen:

• Accessing existing credit: You can continue to use your existing credit accounts, such as credit cards and loans, as a credit freeze does not affect your current financial relationships.
• Credit Score monitoring: You can still access your credit report and monitor your credit score. Please note that freezing your credit does not stop your credit score from updating.
• Receiving government services: A credit freeze does not prevent government agencies from accessing your credit report for activities like processing your tax returns or investigating fraud.
• Ongoing financial activities: While your credit is frozen your credit report may still be accessed for legal proceedings or by entities like your existing creditors.

Activities you cannot do with frozen credit

The primary goal of a credit freeze is to prevent unauthorized access to your credit report. However, it can also affect you, for example:

• Receiving new credit: With a frozen credit report, you cannot open new credit accounts, such as credit cards, auto loans, personal loans or mortgages, as potential lenders cannot access your credit report to assess your creditworthiness. This also means you can’t get preapproved for a new credit card until you decide to unfreeze your credit. As a result, any automatic preapproval offers, which are based on periodic credit checks, will not occur while your credit is frozen.

It's important to note that freezing your credit does not affect your credit score directly; it prevents the processing of any new applications that require a hard credit check. If you anticipate needing new credit, such as applying for a mortgage or auto loan, consider the timing of freezing and unfreezing your credit to avoid complications.

Should I unfreeze my credit before attempting to get a credit card?

As you apply for a credit card, you will provide consent to the potential lender to run a hard credit check. This allows lenders to access your credit report and assess your creditworthiness. You can unfreeze your credit temporarily for a specific creditor or for a certain period during which you plan to apply for credit.

You might want to plan the timing of the unfreeze to coincide closely with your credit application to minimize the window during which your credit report is accessible, thereby reducing the risk of fraud.

Managing credit freezes effectively

It's important to keep a secure record of the personal identification numbers (PINs) or passwords that each credit bureau provides when you freeze your credit. You will need these to lift the credit freeze.

While credit freezes are specifically designed to help prevent fraud, it could be helpful to regularly review your credit report even after requesting a freeze. This can help ensure there were no unauthorized activities while your credit wasn’t frozen.

The bottom line

Freezing your credit can be a powerful tool against identity theft, but it prevents you from applying for new credit. By strategically planning when to freeze and unfreeze your credit, you can protect your finances while still requesting new credit opportunities.