A fraud alert and a credit freeze both relate to new-account identity protection, but they operate differently. Choosing between them starts with understanding whether you want access restricted or an additional identity-verification signal placed on the file.
A freeze restricts access
A credit freeze limits prospective creditors' access to your credit report. To place one across the three nationwide bureaus, contact each bureau. It remains until you lift it, and you can arrange a temporary lift when applying for credit.
The FTC compares freezes and alerts and explains that both are free. A freeze does not reduce your score. Keep bureau credentials private and use the official access process when a legitimate lender needs a report.
An alert calls for verification
A fraud alert tells businesses to verify your identity before opening new credit. You can place an initial alert with one nationwide bureau, which must notify the other two. An initial alert lasts one year and can be renewed. An extended alert has different eligibility requirements and lasts seven years.
Make sure the contact information associated with an alert is current. An extra verification step is less useful if the business cannot reach you using reliable details. Ask the bureau how to update those details after a move or phone-number change.
Match the protection to the situation
You can have an alert and a freeze at the same time. Neither option cancels an existing loan or erases a fraudulent account already opened. If identity theft has occurred, a recovery process may include additional steps involving creditors, reports and affected accounts.
For example, discovering an unfamiliar loan is a reason to document and investigate that account, not merely place an alert and assume the balance will disappear. IdentityTheft.gov is the FTC's starting point for a personal recovery plan.
Keep a dated record of the protection you place and any temporary access you allow. Continue reviewing bank and credit-card activity, because neither an alert nor a freeze stops every misuse of an existing account. The practical goal is to know what each protection covers and to follow through on the specific problem you found.
