What is the difference between a fraud alert and a credit freeze?
A fraud alert is a notice placed on your credit report file that alerts potential creditors that they must use “reasonable policies and procedures” to verify your identity before they issue credit. Fraud alerts are either “initial” or “extended.” If you suspect or you have been a victim an “initial” fraud alert lasts for 90 days. If you have been a victim, an “extended” alert will last for seven years. A credit freeze does just that, it restricts access to your credit report. If a creditor requires a credit report to offer credit, a credit freeze on your account would not allow to extension of credit. Although the use of alerts and freezes can be effective, they can also be very cumbersome. In addition, as noted above, 79% of all identity theft comes from the fraudulent use of existing accounts, so neither the alert or freeze will do anything to help.
