Definition
A fraud alert is a notice placed on your credit report that tells creditors to take extra steps to verify your identity before granting credit in your name. When you have a fraud alert on your report, a business must verify your identity before issuing new credit, which might involve calling you at a phone number you've provided when placing the alert. Fraud alerts are free and easier to use than credit freezes because when you place an alert with one credit bureau, it's required to notify the other two. There are three types: initial fraud alerts (1 year), extended fraud alerts (7 years, for verified identity theft victims), and active duty alerts (1 year, for military personnel). Unlike credit freezes, fraud alerts don't completely block access to your credit report, making them less restrictive if you're actively applying for credit.
Frequently Asked Questions
How do I place a fraud alert?
To place a fraud alert, contact any one of the three major credit bureaus (Equifax, Experian, or TransUnion) through their website, by phone, or by mail. You only need to contact one bureau; it's required by law to notify the other two. When placing the alert, you'll need to provide identifying information including your name, address, Social Security number, and date of birth. You'll also need to provide contact information that creditors can use to verify your identity.
What's the difference between the three types of fraud alerts?
Initial fraud alerts last for one year and are appropriate if you're concerned about identity theft but haven't yet become a victim. Extended fraud alerts last for seven years and are available only to victims of identity theft who have filed an identity theft report with the FTC or a police report. Active duty alerts last for one year and are designed for military personnel who want to protect their credit while deployed; they also remove you from pre-screened credit offer lists for two years instead of the standard five.
Can I still apply for credit with a fraud alert?
Yes, you can still apply for credit with a fraud alert in place. The alert doesn't prevent creditors from accessing your credit report or extending credit to you. It simply requires them to take additional steps to verify your identity before approving new accounts. This might involve calling you at the phone number you provided when you placed the alert or using other verification methods. For this reason, fraud alerts are less restrictive than credit freezes if you're actively applying for credit.
Related Terms
Need Credit Help?
Discover tools and resources to help improve your credit score and financial health.