Credit freezes and fraud alerts can help protect you from identity theft. They can also help stop someone who stole your identity from continuing to misuse it. Credit freezes and fraud alerts work in different ways. Learn the differences, how to place a freeze or alert, and how long they last. Your personal situation will determine which one is right for you.
Is a Credit Freeze Right for You?
You don’t have to wait for your Social Security number or other information to be exposed in a data breach — or misused by an identity thief — to benefit from a credit freeze. Anyone can use a freeze to protect themselves against identity theft. A freeze keeps people from getting into your credit report. While a freeze is in place, nobody can open a new credit account. A freeze is free to place and lift and it doesn’t affect your credit score. Even if you already have a credit freeze in place, you can place a fraud alert.
Three Types of Fraud Alerts
There are three types of alerts, and which you choose depends on your situation and needs.
Initial fraud alert
What it does: An initial fraud alert tells businesses to check with you before opening a new account in your name. Usually, that means contacting you first to make sure the person trying to open a new account is really you. Unlike a credit freeze, a fraud alert doesn’t prevent businesses from seeing your credit report.
Who can place one: Anyone who suspects fraud. When you place an initial fraud alert on your credit report, you can get a free copy of your credit report from each of the three credit bureaus.
How long it lasts: An initial fraud alert lasts one year. You can choose to renew it.
Cost: Free
How to place one: Contact any one of the three credit bureaus — Equifax, Experian, and TransUnion. You don’t have to contact all three. The credit bureau you contact must tell the other two to place an initial fraud alert on your credit report.
Extended fraud alert
What it does: Like an initial fraud alert, an extended fraud alert will make it harder for someone to open a new credit account in your name. A business must contact you before it issues new credit in your name.
Review your credits report weekly at AnnualCreditReport.com, and ask for an extra report for 12 months when an alert is in place.
The credit bureaus will also take you off their marketing lists for unsolicited credit and insurance offers for five years, unless you ask them not to.
Who can place one: People who experienced identity theft and who have completed an FTC identity theft report at IdentityTheft.gov or filed a police report.
How long it lasts: An extended fraud alert lasts seven years. You’ll have the choice to renew it, but you’ll have to resubmit your FTC identity theft report or police report.
If you need to do things like apply for new credit, rent an apartment, or buy insurance, you can temporarily lift the freeze, then put it back when you’re done.
Cost: Free
How to place one: Contact any one of the three credit bureaus — Equifax, Experian, and TransUnion. You don’t have to contact all three. The credit bureau you contact must tell the other two to place an extended fraud alert on your credit report.
Active duty alert
What it does: As an active duty service member, placing an active duty fraud alert on your credit report will make it harder for someone to open a new credit account in your name. A business must verify your identity before it issues new credit in your name.
An active duty fraud alert also requires the credit bureaus to take you off their marketing lists for unsolicited credit and insurance offers for two years, unless you ask them not to.
Who can place one: Active duty service members.
How long it lasts: An active duty fraud alert lasts one year. After a year, you’ll have the choice to renew it for the length of your deployment.
Cost: Free
How to place one: Contact any one of the three credit bureaus —Equifax, Experian, or TransUnion. You don’t have to contact all three. The credit bureau you contact must tell the other two to place an active duty fraud alert on your credit report.
Free credit monitoring for active duty servicemembers and National Guard members
Active duty servicemembers and National Guard members can get free electronic credit monitoring, to help detect problems that might be the result of identity theft. To sign up, contact each of the three credit bureaus — Equifax, Experian, and TransUnion.
Which Fraud Alert Is Right for You?
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Remember that a credit freeze can help protect you from identity theft. You can place both a credit freeze and any type of fraud alert.
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Initial fraud alert
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Extended fraud alert
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Active duty fraud alert
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Place when you’re concerned about identity theft. It makes it harder for someone to open a new credit account in your name. It’s free and lasts one year.
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Place when you’ve had your identity stolen and completed an FTC identity theft report at IdentityTheft.gov or filed a police report. It makes it harder for someone to open a new credit account in your name and removes you from unsolicited credit and insurance offers for five years. It’s free and lasts seven years.
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Place when you’re on active military duty. It makes it harder for someone to open a new credit account in your name and removes you from unsolicited credit and insurance offers for two years. It’s free and lasts one year.
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