Credit Freeze vs Fraud Alert: Which Protection Do You Need?

With identity theft affecting millions of Americans each year, protecting your credit is essential. Two key tools are credit freezes and fraud alerts. Here's how they differ and when to use each.

Credit Freeze (Security Freeze)

A credit freeze restricts access to your credit report, preventing creditors from seeing it and making it nearly impossible for identity thieves to open new accounts in your name.

How it works:

• Blocks new creditors from accessing your report
• Existing creditors can still access it
• You can lift temporarily when applying for credit
• Free to place and lift
• Must be done with each bureau separately

Best for:

• Proactive protection for everyone
• After identity theft occurs
• If your information was in a data breach
• If you're not actively applying for credit

Fraud Alert

A fraud alert notifies potential creditors to verify your identity before opening new accounts in your name. It's a flag on your credit report, not a complete block.

Types:

• Initial alert - Lasts 1 year, requires only one bureau (they notify others)
• Extended alert - Lasts 7 years, requires identity theft report
• Active duty alert - For military members, lasts 1 year

Best for:

• Quick protection after suspicious activity
• While traveling
• As a complement to a credit freeze
• If you want to avoid the hassle of unfreezing for applications

Key Differences

| Feature | Credit Freeze | Fraud Alert | |---------|---------------|-------------| | Access blocked | Yes | No (just extra verification) | | Duration | Until you lift it | 1-7 years | | Cost | Free | Free | | Bureaus | Must do each separately | One notifies all | | Lifting | You control | Automatic expiration |

How to Place a Credit Freeze

Contact each bureau:

• Experian: experian.com/freeze
• Equifax: equifax.com/personal/credit-report-services/credit-freeze/
• TransUnion: transunion.com/credit-freeze

How to Place a Fraud Alert

Contact any one bureau; they'll notify the others:

• Experian: 1-888-397-3742
• Equifax: 1-800-525-6285
• TransUnion: 1-800-680-7289

Recommendation

For maximum protection, consider using both. A credit freeze provides strong protection, while a fraud alert adds an extra layer of verification.