Credit freezes and fraud alerts are powerful tools that help protect your identity and prevent unauthorized access to your credit report. Whether you’re concerned about potential identity theft or have already fallen victim to it, understanding the options available to you is crucial. In this article, we’ll explore the differences between credit freezes and fraud alerts, who can place them, their duration, and how to go about setting them up.
Credit Freezes
A credit freeze allows you to restrict access to your credit report, making it difficult for anyone, including yourself, to open new credit accounts while the freeze is in place. This proactive measure helps safeguard against identity theft and fraudulent activity. It’s important to note that while a credit freeze is in effect, you can still perform essential tasks like applying for a job, renting an apartment, or purchasing insurance without lifting the freeze.
Who can place one:
Anyone can freeze their credit report, even if they haven’t experienced identity theft.
What it does:
A credit freeze prevents the opening of new credit accounts while in place.
Duration:
A credit freeze remains in effect until you choose to remove it.
Cost:
Placing a credit freeze is free of charge.
How to place:
To initiate a credit freeze, reach out to each of the three major credit bureaus—Equifax, Experian, and TransUnion.
Fraud Alerts
Fraud alerts are an additional layer of protection that can be placed on your credit report under various circumstances. There are two types of fraud alerts: standard fraud alerts and extended fraud alerts.
Standard Fraud Alert
A standard fraud alert is available to anyone who suspects fraudulent activity and wishes to safeguard their credit report. When a fraud alert is active, businesses are required to verify your identity before issuing new credit accounts in your name. Placing a fraud alert also grants you access to a free copy of your credit report from each of the credit bureaus.
Extended Fraud Alert
An extended fraud alert is intended for individuals who have fallen victim to identity theft and have completed an FTC identity theft report or filed a police report. Similar to a standard fraud alert, an extended fraud alert adds an extra layer of security by requiring businesses to contact you before opening new credit accounts. With an extended fraud alert, you can obtain two free copies of your credit report from each of the credit bureaus within one year of placing 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.
Active Duty Alert
Active duty service members have access to an active duty fraud alert. This alert works similarly to standard and extended fraud alerts by making it more challenging for someone to open a new credit account using your information. It also removes you from unsolicited credit and insurance offers for a duration of two years. Active duty fraud alerts are valid for one year and can be renewed for the length of your deployment.
Placing any type of fraud alert requires contacting only one of the three major credit bureaus—Equifax, Experian, or TransUnion. Once notified, the credit bureau you contacted will inform the other two to place the appropriate fraud alert on your credit report.
FAQs
Q: How do I choose the right fraud alert?
A: The type of fraud alert you choose depends on your specific situation. If you’re concerned about potential identity theft, a standard fraud alert is suitable. On the other hand, if you’ve already experienced identity theft and have filed a report, an extended fraud alert provides added protection. Active duty service members should consider an active duty fraud alert to safeguard their credit during deployment.
Conclusion
Protecting your credit and identity is essential in today’s digital age. Credit freezes and fraud alerts are powerful tools that offer peace of mind and safeguard against unauthorized access to your credit report. By understanding the differences between credit freezes and fraud alerts, and knowing how to set them up, you can take proactive steps to protect yourself from identity theft and fraudulent activity.
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