Credit Freeze vs Fraud Alert

If you're worried someone might open credit in your name, the strongest free protection tool is a credit freeze. It blocks access to your credit report, and without it, a new lender can't approve an application.

A credit freeze is often confused with a fraud alert. They're different things, and it's important to know when to use each one.

What a credit freeze is

A freeze restricts access to your credit report for new creditors. When a fraudster tries to open an account in your name, the lender can't pull your report — so the application typically gets denied.

Key facts about credit freezes:

• By federal law, freezing and unfreezing are free at all three bureaus
• It doesn't affect your score and doesn't damage your credit history
• Your existing accounts keep working normally
• You need to freeze your credit separately at each of the three bureaus — Equifax, Experian, and TransUnion

Freeze vs fraud alert

These are two different levels of protection:

• Credit freeze — fully blocks access to your report for new creditors; the strongest option
• Fraud alert — doesn't block your report, but requires creditors to take extra steps to verify your identity before extending credit

A fraud alert is free, and typically you only need to request it at one bureau — it will notify the other two. A basic alert lasts a limited time and needs to be renewed. A freeze stays in place until you remove it yourself. If you want maximum protection, choose a freeze; if you want something lighter, an alert may be enough.

When a freeze is especially important

• After a data breach that may have exposed your information
• After identity theft or suspicious activity
• If you don't plan to apply for new credit anytime soon
• To protect children or elderly relatives whose information could be misused by fraudsters

How to freeze and unfreeze

1. Contact each of the three bureaus separately — online, by phone, or by mail
2. Verify your identity; you'll receive a PIN or account access to manage the freeze
3. Store your PIN and access information somewhere secure
4. To apply for credit, temporarily lift the freeze — you can do this for a set time period or for a specific creditor
5. Once your application is approved, you can re-freeze your credit

Unfreezing usually happens quickly, often almost instantly with an online request. If you're planning a mortgage, auto loan, or new card, lift the freeze ahead of time so your application doesn't get held up.