Fraud Alert Or Freeze

Some people have asked me about my view on fraud alert or freeze on credit reports to prevent identity theft. In order to fully understand the benefits of both and their usefulness in preventing identity theft, you need to learn about the detail characteristics of both fraud alert and credit report freeze and understand their intended purpose and differences. But if you don’t have enough time to learn about the details now, here’s a quick summary of what they are. A fraud alert can be placed on your credit report to force the third parties wishing to view your credit history for the purposes of grating you a credit line or other offers, to contact you at the phone number listed on your credit report. This is to make sure that third parties, whether it’s a credit card company or a mortgage broker, validate your identity and ensure you are the person who has initiated the credit application. Although, there is no guarantee third parties will contact you for sure, it’s definitely a good way to limit your identity theft risks. On the other hand, when a credit or security freeze is placed on your credit report, no one can access your reports until you lift the freeze.

I think that a credit freeze is definitely a better solution in our efforts to prevent identity theft. It’s somewhat rigid because it requires our direct and proactive involvement to lift the freeze and authorize the sharing of our credit reports and it may not be suitable for people who apply regularly for new credit accounts and who need a quick turnaround of their application. You must also remember, a freeze can cost you to place and lift them each time. In some cases, it can take up to 3 business days to lift a credit freeze. But, if you rarely apply for new credit accounts, a credit freeze may be just for you.

For those who want the flexibility of a quick turnaround every time they want to buy something on credit, they should consider a fraud alert. A fraud alert would also be a good tool in preventing identity theft, although, we are somewhat at the mercy of third parties to call us and validate our identity, but it’s better than having no alert or freeze at all placed on the reports.

In conclusion, if you rarely apply for credit and want total control over your credit reports, go with a credit report freeze. And, if you often apply for credit to buy things and want flexibility and quick turnaround, yet want to somewhat prevent identity theft, consider a fraud alert instead. Either way, you are doing what’s right for your situation while considering the risks of identity theft and benefits of both fraud alert or freeze in the fight against identity theft.

Consider an account freeze to protect your existing accounts.

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