What’s the Difference Between a Freeze and an Alert?

Consumers have to protect their credit information. With identity thieves and cyber criminals becoming more and more sophisticated every day, this means that consumers in some circumstances must take extra measures to protect their credit information.

As consumer lawyers, the lawyers at Consumer Attorneys see firsthand the chaos that identity theft and credit fraud in the credit reporting arena can create in a person’s life and the damage that each can do to a person’s financial well-being. We are proud to represent our clients when things go wrong. But we also love when we can help our clients prevent things from going wrong. Understanding and utilizing tools like the credit freeze and the fraud alert can be your first defense. 

What's the difference between a freeze and an alert? While both are security measures designed to prevent identity thieves and cyber criminals from accessing your credit report and fraudulently opening new credit in your name, and while both are free to the consumer, there are some significant differences. 

Highlights

• Credit Freeze. This is one of the strongest credit security tools. A credit freeze completely and totally locks down your credit report, prohibiting almost everyone from accessing it without your express permission. 
• Fraud Alert. This is a precautionary measure for credit security. A fraud alert allows potential creditors to access your credit report but only after they take a few extra steps to verify your identity before they do.

If you are deciding between the two, you should assess your specific needs and your specific circumstances and the emphasis you place on security versus convenience. Understanding these tools can significantly enhance your financial security and peace of mind.

What is a Security Freeze?

A security freeze, more often referred to as a “credit freeze,” completely blocks all access to your credit report for everyone (though there are a few exceptions we will discuss later on in this article) making it nearly impossible for an identity thief or a cyber-criminal to open any new credit in your name. When your credit report is frozen, potential lenders, banks, credit card companies, landlords, and anyone else who might want to check your credit will be unable to do so. 

If the security is so strong why isn’t a credit freeze the clear choice for what you should do to take extra precautions in protecting your credit? A credit freeze requires a consumer to take extra steps to “unfreeze” it. For many, the extra steps required to unfreeze their credit make it non-viable.

How Can I Initiate a Security Freeze on My Credit Reports?

1. Contact the three major credit reporting agencies.
2. Verify your identity.
3. Follow each bureau’s specific process to initiate the freeze.
4. Write down the PIN each credit bureau gives you to unlock the credit freeze. 

When to Unfreeze Your Credit

Because you may need to lift a credit freeze temporarily, the credit bureaus will give you a PIN or password when you initiate the freeze. You can usually temporarily lift or unfreeze your credit online or over the phone. Follow the instructions or prompts and provide the PIN that each credit reporting agency gave you. Your credit should be unfrozen in less than a day.

What is a Fraud Alert?

A fraud alert is a security mechanism that the credit reporting agencies assign to your credit report. This fraud alert sends a message to lenders, creditors, potential lenders, potential creditors, and anyone else accessing your credit report that they will need to take some extra steps to verify your identity before giving you more credit. The lender or creditor will then contact you, ask you a few questions regarding your personally identifiable information, and then confirm that you are applying for some new credit. If it really is you applying for new credit, then you confirm and upon your confirmation, those lenders and creditors will be able to access your credit report and review it as part of their normal credit review process. 

If you suspect that you have been the victim of identity theft or if your information has been compromised in a data breach but you still need access to new credit channels, then a fraud alert can be especially useful and likely the right choice for you.

How Can I Set Up a Fraud Alert?

1. Contact one of the three major credit bureaus - Equifax, Experian, or TransUnion - to request a fraud alert.
2. The bureau you contact must inform the other two, so you don't need to contact all three.

Types of Alerts

• Initial Fraud Alert. This type of fraud alert lasts for one year and is ideal for those who suspect their personally identifiable information may have been compromised or even identity theft.
• Extended Fraud Alert. This lasts for seven years, suitable for confirmed identity theft victims.
• Active Duty Military Alert. This is for military personnel who want to protect their credit while deployed.

Comparing Credit Freeze and Fraud Alert: What You Need to Know

We hope this has been helpful if you are considering some additional safeguards for your credit report and want to understand the distinctions between a credit freeze and a fraud alert. The decision between a fraud alert vs. credit freeze depends on your specific circumstances and your approach to managing credit and identity theft risks. Here is the advice of an identity theft defense attorney from Consumer Attorneys:

• Choose a credit freeze. If you want the very highest level of security, especially following some kind of identity theft, or if your data has been placed at significant risk, a credit freeze is probably the right choice for you. This is especially appropriate if you do not anticipate needing to apply for new credit soon.
• Choose a fraud alert. If you prefer a balance between caution against fraud and keeping new credit easy and available, a fraud alert is likely sufficient for you. It’s ideal for consumers with concerns about potential identity theft or those who wish to ensure an extra layer of verification without the need for repeatedly freezing and unfreezing their credit.

Your situation and your approach to credit and credit report security are all unique. Weigh the pros and cons of each option and choose the security measure that best aligns with your needs. This should ensure both your financial security and the flexibility you need.

Who Can Still See Your Credit Report When It's Frozen or on Fraud Alert: Exceptions

As we have discussed, credit reporting agencies either block or restrict access to your credit report after you initiate a credit freeze or fraud alert. But there are exceptions.

The creditors and loan companies with whom you have existing accounts, the debt collectors acting on behalf of an existing creditor, and government agencies with court orders, subpoenas, or search warrants will still be able to access your credit report even when it is frozen. Additionally, a credit freeze does not prevent you from applying for jobs, renting homes, or obtaining insurance, as these types of entities will also be able to access your report - but only if you give them your consent.

Fraud alerts require would-be creditors to take a couple of extra steps to verify your identity before they extend you any credit, offer you a loan, or approve a loan. Any entity that verifies your identity will be able to access your credit report.

Which Choice Is Suitable for Me?

• You have to weigh your risk of identity theft or some sort of cybercrime. If you have recently lost your wallet or if you have received notice of a cyber breach at a store at which you frequently shop, then you likely need some extra security. But you should assess your need for security against your wish for convenience. A credit freeze offers a higher level of protection but you sacrifice a great deal of convenience. A fraud alert on the other hand offers a moderate level of security without significantly preventing quick and convenient access to your credit report. .
• Consider whether you're likely to remember to renew or manage your credit protection, especially since fraud alerts require you to renew them annually. Also, after you have lifted a credit freeze for credit report access, you will need to re-freeze your credit report.
• If you prefer having maximum security and are not concerned about the administrative inconveniences of undoing a credit freeze, then a credit freeze is likely the best choice for you. On the other hand, if you prefer having more flexibility but also need more protection, a fraud alert will likely provide the balance you're looking for. It sends a signal to potential creditors to take the extra step of verifying your identity before giving you credit and you do not need to do anything extra to manage the process.

Regardless of your choice, you must always remain diligent when it comes to protecting your credit and your personal information. You should still regularly monitor and review your credit report, keep your personal information secure, and always be cautious about sharing your details online or over the phone.

Contact Us For Guidance

We hope this article has been helpful. If you are still uncertain about whether a credit freeze or a fraud alert is right for you, our team of consumer protection attorneys is here for you. Whenever you encounter any issue, problem, or question regarding your credit report, contact us. We love to hear from consumers, listen to what’s happening, and see how we can help.

If you encounter any mistakes during the freeze or fraud alert process, our team is here to help.

Whether you opt for a credit freeze or a fraud alert, we encourage you to remain vigilant and take every precaution to keep your credit report secure and accurate. If you detect any inaccuracies or errors on your credit report, whether it's a TransUnion credit report or an Equifax credit report or an Experian credit report, contact us right away.

Call Consumer Attorneys if you have any questions about credit locks or credit freezes or if you have any problems with credit reporting in general. We can help you fix issues with your credit report, decide between credit freeze vs lock, and also make sure your rights to sue are preserved should we discover damage to your financial health.

Contact us by:

• Chat with a live representative or fill out a form to be contacted. 
• Emailing us at info@consumerattorneys.com to request a meeting with an attorney.
• Calling us at 1-877-615-1725.

Unlike other attorneys, consumer protection is 100% of our practice. We have helped thousands of people recover from credit bureau mistakes and reporting errors.