Difference between fraud alert and credit freeze

Fraud Alert and Credit Freeze
A fraud alert on your credit report requires a creditor to verify your identity before processing credit applications

By Manuel Tovar, July 16 – Hispanic Solutions Group

Today Hispanic Solutions Group The difference between fraud alert and credit freeze reaches them. Which is better?

A fraud alert on your credit report requires a creditor to verify your identity before processing credit applications, while a credit freeze blocks access to your credit report entirely.

According to analysis, each of these methods is designed to prevent Identity Theft and prevent criminals from opening loans or credit accounts in your name. So which method is better?

A fraud alert is intended for victims of credit fraud or identity theft. The extended fraud alert will stay on your credit report for seven years, but you can remove it sooner. To add a fraud alert to your account, you must provide a copy of a valid police report or other identity theft report sent to the police.

The alert will let companies know that you are a victim of identity fraud and ask them to contact you to confirm your identity before granting credit in your name. Businesses can include credit issuers, landlords, potential employers, auto insurance companies, or car rental agencies.

Additionally, active duty service members (refers to the military) can add an alert to their account as well, but proof of military orders must be submitted along with a request for this type of alert. It’s free to set up a fraud alert at the three existing national credit reporting agencies, so you can be more secure

On the other hand, the credit freeze protects your credit file by prohibiting potential new creditors (and others) from reviewing your credit files or obtaining your credit scores unless you lift the freeze. You don’t need to set a credit freeze and a fraud alert at the same time.

To freeze your credit, you must submit an application to each of the three credit bureaus. You can request a freeze online or by phone. You will be asked to create a PIN code or password to use when unfreezing your credit file. If you lose your PIN, you will be asked to provide proof of identity, so keep your PIN in a safe place.

You will need to unfreeze your credit file before applying for credit or services that require access to your credit history, such as opening new accounts or applying for an apartment.

Which is better? If you are applying for credit and need access to your credit file, it is probably best to file a temporary fraud alert, which stays on your account for a year and does not require a police report. But if you’re nearing retirement and don’t anticipate the need for new credit cards or loans, credit freezes can give you peace of mind so that no one can access your credit file or open accounts in your name.

We invite you to follow our social networks: LinkendIn, Facebook, Twitter and Instagram to find more information related to finances. Also on our YouTube channel The Credit Channel to learn how to improve your credit. If you need help in repairing your credit, disputing debts that do not belong to you, or other services, call us at (612) 216-1599.