Personal Finance Credit Score
Written by Jennifer Streaks and Tanza Loudenback; edited by Sarah Silbert
- What is a fraud alert?
- How to set up a fraud alert
- FAQs
Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate credit score services to help you make smart decisions with your money.
- A fraud alert is a free service credit bureaus offer to protect fraud victims against identity theft.
- If a lender sees a fraud alert on your credit report, they must confirm your identity before opening your account.
- You only need to place a fraud alert with one bureau, as it must notify the other two of the alert.
Introduction to fraud alert
Identity theft is often a crime of opportunity as hackers exploit weaknesses in your digital security. The best identity theft protection services and best credit monitoring services can give you a solid wall of protection and some recourse for identity theft recovery.
However, the credit bureaus also offer free tools that go a long way toward preventing identity theft, such as a fraud alert.
What is a fraud alert?
A fraud alert is a free service offered by credit bureaus that acts as a red flag to any third parties pulling your credit report. If a creditor sees a fraud alert when viewing your credit report, they're required to confirm your identity, usually through a phone call, before issuing credit in your name.
The importance of fraud alerts in identity protection
While anyone can place a fraud alert on their credit report to mitigate the risk of identity theft, they especially benefit people who have already been targeted or believe they will be targeted. This is because identity theft victims are often targeted repeatedly. According to the Identity Theft Resource Center, 29% of identity theft victims were repeatedly targeted.
Types of fraud alerts
There are three types of fraud alerts that you can place on your credit: initial, extended, and active duty. They all perform similar functions but differ in how long they last and who can sign up for them.
Initial fraud alert: Anyone can place an initial fraud alert on their credit, and this is the most common type of fraud alert. They last one year before the credit bureaus automatically remove them, at which point you will have to place another fraud alert on your credit. When you place a fraud alert on your credit report, you are given a free credit report for review.
Extended fraud alert: Extended fraud alerts were made specifically for people who have already been the victim of identity theft. Extended fraud alerts last seven years, and anybody who signs up gets two free credit reports in the first year. To sign up for an extended fraud alert, you will need a copy of a law enforcement agency report or an identity theft report from the Federal Trade Commission.
Active duty alert: This fraud alert is meant for members of the military going into active duty. Like an initial fraud alert, active duty alerts last one year. They also prevent insurance and credit card companies from contacting you with promotional offers for two years.
Steps to set up a fraud alert
Contacting one of the major credit bureaus
Setting up a fraud alert is quick and easy. You just need to contact one of the three credit bureaus, Experian, Equifax, or TransUnion. The bureau you call is legally required to tell the other two about the fraud alert.
Here's the contact information for each of the three bureaus:
- Equifax— Call 800-525-6285 or add a fraud alert through your online Equifax account
- Experian— Call 888‑397‑3742 or add a fraud alert through Experian's Fraud Alert Hub
- TransUnion— Add a fraud alert by calling (800) 680-7289 or through TransUnion's online account
What to do after setting up a fraud alert
After you set up your fraud alert, be sure to monitor your credit reports for potential fraudulent activity and you may want to employ other identity protection services.
Benefits of setting up a fraud alert
A fraud alert isn't an airtight defense against identity theft, nor does it remedy any damage that an instance of identity theft has already caused. However, placing a fraud alert can offer some peace of mind and stop any further damage to your credit, and is the first step in recovering from identity theft.
FAQs
How is a fraud alert different than a credit freeze?
Fraud alerts and credit freezes are both free services offered by credit bureaus. However, while a fraud alert requires creditors to take extra precautions with your credit report, a credit freeze prevents them from pulling your credit report at all. Additionally, when you place a credit freeze, you must reach out to each credit bureau individually to freeze your credit.
What information do I need to provide to set up a fraud alert?
You'll need to provide information so that the credit bureau can verify that it is you making the request. This includes current contact information, including your name, address, Social Security number, and a proof of identity document.
Can I still open new credit accounts with a fraud alert in place?
Yes, you can still apply for and open new credit. A fraud alert may require lenders to take extra steps to verify your identity before approving credit, which is how identity theft is prevented, but it doesn't prevent you from obtaining new credit.
Will a fraud alert hurt my credit?
No, a fraud alert has no impact on your credit score. It is also illegal for a creditor to reject your credit application because you have a fraud alert on your credit report.
Is there a fee for setting up a fraud alert?
No, placing, renewing, or removing a fraud alert is free of charge.
How do I renew or remove a fraud alert?
To renew or remove a fraud alert, you'll need to contact the credit bureaus directly. If it's not an extended fraud alert, you will have to renew after one year if you wish to maintain it.
How long does a fraud alert last?
Active duty and initial fraud alerts expire after twelve months and extended alerts last 7 years. You can add a new alert after one expires.
Senior Personal Finance Reporter and Spokesperson
Jennifer Streaks is a Personal Finance Expert and Journalist who writes about credit and all things money for Business Insider. Committed to financial literacy and economic empowerment, she has covered financial topics for over a decade, writing about her own experiences and sharing her expertise to give consumers actionable financial advice.Along with exploring credit scores, credit reports, and how to build credit, Jennifer analyzes how current economic trends impact everyday people and offers her expert advice on budgeting, saving, and growing wealth in today’s economy. She regularly appears as an on-air financial commentator on programs like Good Morning America, Yahoo! Finance, CBS, and MSNBC.ExperienceBefore joining Business Insider, Jennifer was a financial contributor for CNBC and covered personal finance, entrepreneurship, tech, and the economy for Forbes. Her work has appeared in TheGrio, Black Enterprise, and USA Today.Jennifer is also the author of "Thrive! ... Affordably: Your Month-to-Month Guide to Living Your Best Life Without Breaking the Bank." The book offers advice, tips, and financial management lessons geared toward helping the reader highlight strengths, identify missteps, and take control of their finances.Jennifer’s most important financial advice to her friends is to always have an emergency fund.ExpertiseJennifer’s expertise includes:
- Credit scores
- Credit history
- Credit reports
- Budgeting
- Saving
- Housing
- Retirement
- The economy
- Financial trends
EducationJennifer earned an MBA from The Johns Hopkins University Carey School of Business and completed the Wharton Seminar for Business Journalists.Jennifer is based in New York City.
Tanza Loudenback is a personal finance expert and a Certified Financial Planner (CFP). She was the founding reporter of Personal Finance Insider, covering topics including taxes, retirement planning, banking, real estate and mortgages, and budgeting. Her work has been featured in WSJ Buy Side, Fortune Recommends, Korn Ferry, TheStreet, Morgan Stanley Wealth Management, and Fidelity.ExperienceTanza was the first reporter on the Personal Finance Insider team. In addition to helping build the vertical from the ground up, she helmed a biweekly advice column answering readers’ personal finance questions and launched a personal finance newsletter. She also published two e-books under the Personal Finance Insider brand.She was the editorial lead on Master Your Money series, a two-year-long Business Insider series providing financial advice to millennials. She managed Master Your Money bootcamp events over the course of the series. While at BI, she also expanded tax coverage to include a guide to the best tax software and commissioned a panel of experts to review all articles.Tanza obtained her CFP license in 2020. She aims to simplify personal finance concepts for readers so that they can make smart decisions with their money.ExpertiseTanza’s areas of personal finance expertise include:
- Real estate/mortgages
- Taxes
- Retirement planning
- Small business finances
- Banking
- Budgeting
EducationTanza is a graduate of Elon University with a degree in print and online journalism, with a minor in Italian studies.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview
Thanks for signing up! Go to newsletter preferences
Thanks for signing up!
Access your favorite topics in a personalized feed while you're on the go.