Identity theft is on the rise. The FTC estimates that over 9 million identities are stolen each year!
In order for thieves to open credit cards or any other tradeline under your name, the lenders will need to be able to pull one or all of your credit reports. There are two things you can do to protect your credit report from unauthorized access. One is a security freeze and the other option is a fraud alert. In this post, let’s discuss both and when to use each.
What is a security freeze?
All credit bureaus have a free option to freeze your credit report. Once your report is frozen, no one is able to view it until you unfreeze it. Every time you want to apply for credit, mortgage, and even sometimes just to get an insurance quote, etc., you will need to unfreeze your credit reports. You can also give a bank access to your credit report by generating a temporary code.
How do I freeze my credit report?
The law requires that all three credit bureaus must freeze your credit report for free within 24 hours from when you submit a request online or by phone.
Here is where you can request to freeze your credit with the three credit bureaus:
1) Experian
- Online: https://www.experian.com/freeze/center.html
- Phone: 888-397-3742
- Experian also has an option to easily lock your credit report but you must have an Experian premium membership in order to do so. You can often get a 7-day free trial for the premium membership. Experian lock is the easiest way to freeze your credit report. It takes a second to literally click on the lock button as seen in the screenshot below and lock your report, and same with unlocking it.
You can sign up here.
2) Equifax
- Online: https://www.equifax.com/personal/credit-report-services/
- Phone: 800-685-1111
3) Transunion
- Online: https://www.transunion.com/credit-freeze
- Phone: 888-909-8872
What is a fraud alert?
When someone falls victim to identity theft or fraud, (or if someone thinks they may have fallen victim to identity theft or fraud), they can place a fraud alert on their credit reports. After you place a fraud alert, lenders will receive a message when they pull your credit which will state something like the following: ID SECURITY ALERT: Fraudulent applications may be submitted in my name or my identity may have been used without my consent to fraudulently obtain goods or services. Do not extend credit without first verifying the identity of the applicant.
Banks will take extra verification steps before extending credit or approving you for a credit card. Verification steps may include the bank calling to ask you security questions, asking for additional documents that proves your identity, etc.
How do I place a fraud alert?
You can place a fraud alert by contacting any of the three credit bureaus online or by phone.
Experian
- Online: https://www.experian.com/fraud/center.html
- Phone: 1888-397-3742
Transunion
- Online: https://www.transunion.com/fraud-victim-resource/place-fraud-alert
- Phone: 1800-680-7289
Equifax
- Online: https://www.equifax.com/personal/education/identity-theft/fraud-alert-security-freeze-credit-lock/
- Phone: 1800-685-1111
You only need to contact one of the three credit bureaus. The credit bureau you contact will send a message to the other two credit bureaus to place the fraud alert as well.
Which one is better: a fraud alert or freeze?
Even though a fraud alert sounds easier to place, you only need to contact one credit bureau, I still wouldn’t recommend it over a credit freeze. The reason being that it’s much harder to remove than a credit freeze. There are many reports on the internet of people getting declined for credit cards just because they had a fraud alert. Credit card issuers like to have their systems run smoothly and they don’t want to deal with extra headaches. With a fraud alert, you’re locking thieves out, but at the same time, you’re also locking yourself out. With a credit freeze, you have more control of when you want it locked and when you want it open.
When is a fraud alert important?
In some cases, I recommend both a security freeze and a fraud alert. This is in a case where the person who is stealing your identity is a close family member or x-spouse, etc., who knows all your info. In such a case, they can very likely lift the credit freeze themselves using your info and then your credit will not be protected from them. In such a case, it makes sense to also put a fraud alert which will require the bank to contact you by phone before issuing credit to anyone. That will be an extra layer of protection for you to be able to pick up on fraud early.
I don’t understand the point you’re making about the Experian paid credit lock, supposedly that it’s the quicker/easier option.
A free Experian Credit “Freeze” is the same one click simple to use.