What To Know About Credit Freezes and Fraud Alerts (2024)

FAQs

Is it better to place a fraud alert or credit freeze? ›

But they're used in different ways: Fraud alerts are typically more temporary and allow access to your credit file with added identity verification, while credit freezes have more restrictions on credit file access and can last indefinitely.

While a security freeze can help protect you by preventing certain access to your credit reports if someone attempts to open a new credit account in your name, it can't help protect you against other forms of fraud, such as a stolen credit card number.

A freeze can give you a false sense of security — you may still be susceptible to credit fraud or other fraud involving your Social Security number. A credit freeze won't affect your current accounts, but if a thief steals the information on an existing account, your credit may be used without your permission.

Although freezing your credit reports limits access to that credit report, it doesn't block access completely. The credit bureau could still send your report to people and companies when they request your credit report for a situation that doesn't involve opening a new credit account.

You can set up a fraud alert with a single phone call or by going online. You have to notify only one of the three credit bureaus — the one you contact is required to reach out to the other two. Here's the contact information you'll need: Equifax: 800-685-1111.

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A security freeze (also known as a credit freeze) and a credit lock both achieve the same main goal: preventing the use of your credit report for processing a loan or credit application. Both are security measures that can be helpful if criminals impersonating you attempt to borrow money in your name.

Placing a freeze on your credit means that no one can access your information to fraudulently open a new account in your name.

A security freeze can help prevent identity theft, because businesses will not open credit accounts without first checking a consumer's credit history. If your credit files are frozen, even someone who has your name and Social Security number probably will not be able to obtain credit in your name.

While freezing your credit offers a robust layer of security, it's not a surefire way to protect against fraud. And it's not the only step you should take to safeguard your credit. LifeLock Ultimate Plus provides an arsenal of identity theft protection services like extensive credit monitoring and fraud alerts.

It doesn't affect your ability to use your current credit cards or other types of revolving credit. But if you want to open new lines of credit, including new credit cards, you'll need to unfreeze your credit.

How many years does a credit freeze last? ›

On the bright side, credit freezes can last for a long time. Most states allow credit freezes to stay in place until you remove them, but other states allow freezes to expire after seven years.

Bottom Line. Freezing your credit isn't a perfect solution to protecting yourself from identity theft and credit fraud. It is, however, effective at preventing criminals from opening credit accounts in your name. Now that credit freezes are free, there is little reason not to do it.

One of the most common reasons why your credit might be frozen without your knowledge is if you have become a victim of identity theft. Identity theft occurs when a cybercriminal takes a victim's private information – like a Social Security number, birthdate or address – to impersonate them.

Key Takeaways. A credit freeze can secure your credit reports from unauthorized access. It's now free to freeze and unfreeze your credit reports with the three major credit reporting bureaus. A credit freeze doesn't prevent people who already have access to your credit history from viewing your credit file.

Credit score and mortgages

The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).

Credit freezes and fraud alerts can protect you from identity theft or prevent further misuse of your personal information if it was stolen. Learn what they do and how to place them.

To remove an Identity Alert, you can submit a written request by mail with copies of two forms of ID. The main difference between an Identity Alert and a Fraud Warning is that a Fraud Warning is only available to confirmed victims of fraud/identity theft.

“If an unauthorized charge increased a balance on your account, and that increased balance was reported to a credit reporting agency, this can (also) impact your score,” notes Margaret Poe, head of consumer credit education at TransUnion.

The process with each can be completed in less than 10 minutes. Equifax: Go to the Equifax consumer services center or call 800-349-9960. Experian: Contact Experian's security freeze center or call 888-397-3742. TransUnion: Go to the TransUnion's website or call 888-909-8872.