Credit Freezes
Anyone can freeze their credit report, even if their identity has not been stolen. A credit freeze restricts access to your credit report, preventing the opening of new credit accounts while the freeze is in place. You can temporarily lift the credit freeze if you need to apply for new credit. During the freeze, you can still perform activities like applying for a job, renting an apartment, or buying insurance without lifting or removing it. A credit freeze lasts until you remove it and is free of charge. To place a credit freeze, contact each of the three credit bureaus: Equifax, Experian, and TransUnion.
Fraud Alerts
Fraud alerts are available in different situations and offer different benefits.
Fraud alert
Anyone who suspects fraud can place a fraud alert on their credit report. This alert makes it harder for someone to open a new credit account in your name as businesses must verify your identity before issuing new credit. Placing a fraud alert allows you to request a free copy of your credit report from each of the three credit bureaus. A fraud alert lasts for one year, after which you can renew it. It is also free of charge. To place a fraud alert, contact any one of the three credit bureaus, and they will inform the others to place the alert on your credit report.
Extended fraud alert
An extended fraud alert is available only to individuals who have had their identity stolen. To qualify, you must have completed an FTC identity theft report at IdentityTheft.gov or filed a police report. Similar to a fraud alert, an extended fraud alert makes it harder for someone to open a new credit account in your name. It also allows you to request a free copy of your credit report from each of the three credit bureaus twice within one year from when you place the alert. Additionally, the credit bureaus will remove you from their marketing lists for unsolicited credit and insurance offers for five years, unless you request otherwise. An extended fraud alert lasts for seven years and is free of charge. To place an extended fraud alert, contact any one of the three credit bureaus.
Active duty alert
Active duty service members can place an active duty fraud alert. This alert makes it harder for someone to open a new credit account in your name. Similar to the other alerts, businesses must verify your identity before issuing new credit. Additionally, the credit bureaus will remove you from their marketing lists for unsolicited credit and insurance offers for two years unless you request otherwise. An active duty fraud alert lasts for one year, and you can renew it for the length of your deployment. Like the other alerts, it is free of charge. To place an active duty fraud alert, contact any one of the three credit bureaus.
Free credit monitoring for active duty service members
Active duty service members can receive free electronic credit monitoring, which can detect problems that might be the result of identity theft. To sign up, contact each of the three credit bureaus: Equifax, Experian, and TransUnion.
FAQs
Q: What is the difference between a credit freeze and a fraud alert?
A: A credit freeze restricts access to your credit report, while a fraud alert makes it harder for someone to open a new credit account in your name.
Q: How long do fraud alerts last?
A: A fraud alert lasts for one year, while an extended fraud alert lasts for seven years. An active duty fraud alert lasts for one year, with the option to renew.
Q: Are credit freezes and fraud alerts free?
A: Yes, both credit freezes and fraud alerts are free of charge.
Q: How do I place a credit freeze or fraud alert?
A: To place a credit freeze or fraud alert, contact any one of the three credit bureaus: Equifax, Experian, and TransUnion. You don’t have to contact all three as the bureau you contact will inform the others.
Conclusion
Credit freezes and fraud alerts are essential tools for protecting your identity and preventing unauthorized access to your credit. By understanding how they work and when to utilize them, you can enhance your financial security. Remember, if you ever need to place a credit freeze or fraud alert, contact any one of the three credit bureaus. Safeguard your credit and stay vigilant against potential fraudulent activities.
*Disclaimer: This information is for educational purposes only and should not be considered legal or financial advice. Consult with a professional for personalized guidance.