Why you need to unfreeze your credit before refinancing
Thinking about refinancing? Interest rates are historically low, so it could be an excellent time to refinance your mortgage. To ensure a smooth application process, you’ll need to be sure to unfreeze your credit if it’s currently frozen. If you need a refresher on a credit freeze (and how to unfreeze), here’s what you should know:
A credit freeze protects your information
If you’re concerned about fraudulent credit applications, freezing your credit prohibits your credit information from being accessed. A credit freeze can protect your credit reports even if someone has accessed critical information such as your Social Security number and birthdate. Placing a freeze on your credit is free and does not affect your score. For those who are not actively applying for a loan, new credit card, or planning to refinance, freezing your credit to protect your information is a smart move. However, it’s important to remember your PIN or password that you created to enact the freeze.
How to unfreeze your credit
Before you contact a lender to apply for refinancing, you’ll need to visit the website of each of the three credit bureaus and log in to unfreeze your credit. You may also contact the bureaus by phone or mail to unfreeze your credit. Reversing the freeze online or by phone takes just minutes, but mailing in your form may take several days.
Ready to unfreeze your credit?
Here’s the contact info for each of the three credit bureaus:
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Visit equifax.com or call 800.349.9960 Visit experian.com or call 888.397.3742 Visit transunion.com or call 888.909.8872
Refinancing is an excellent option that may help you reduce your monthly payments and save money in the long-term.
Michaela is the Vice President of Mortgage Lending at Guaranteed Rate, Inc. Contact Michaela at e-mail michaela. phillips@rate.com or visit michaelaphillips.com. NMLS: 312874.
303.443.6292,