Credit freezes and fraud alerts are tools to make it harder for identity thieves to open new accounts in someone else’s name. The Federal Trade Commission says both are free and can reduce the risk of new accounts being opened by an identity thief. The Consumer Financial Protection Bureau says federal law provides timelines for how fast credit bureaus must place and lift freezes.
How a credit freeze works
The FTC says a credit freeze prevents potential creditors from accessing a person’s credit report. Because most creditors will not extend credit without checking a credit report, the FTC says a freeze helps block identity thieves who try to open accounts in someone else’s name. The FTC also says a credit freeze does not affect a credit score and does not stop the use of existing credit cards, applying for a job, renting an apartment, or buying insurance.
How to place, lift, or remove a credit freeze
The FTC says to place a credit freeze, contact each of the three national credit bureaus: Equifax, Experian, and TransUnion. The FTC says a freeze lasts until it is removed. The FTC says a freeze can be lifted temporarily to allow a creditor to check a report and then put back in place, and placing and lifting a freeze is free.
The CFPB says to contact all three nationwide credit reporting agencies to set up a freeze. The CFPB says that when a freeze is requested by phone or online, the credit bureau has to put it in place within one business day. If a lift of the freeze is requested, the CFPB says the agency must lift it within one hour. For mailed requests, the CFPB says the bureau must add or remove the freeze within three business days after it receives the request.
How a fraud alert works
The FTC says a fraud alert does not limit access to a credit report, but tells businesses to check with the person before opening a new account in that name. The FTC says that usually means a business will contact the person first to confirm identity. The FTC says an initial fraud alert lasts one year and can be renewed for free, and people who place an initial fraud alert can get a free copy of their credit report from each of the three credit bureaus.
How to place an initial, extended, or active duty alert
The FTC says a fraud alert can be started by reaching out to any single one of the three nationwide credit bureaus: Equifax, Experian, or TransUnion. The FTC says the bureau contacted must notify the other two to place the alert. For an initial fraud alert, the FTC says it lasts one year and is free, and it is available to people who are affected by identity theft or think they might be.
The FTC says people who have experienced identity theft and completed an FTC identity theft report or filed a police report can place an extended fraud alert. The FTC says an extended alert lasts seven years and is free, and the bureau contacted must notify the other two to place it. The FTC says an extended alert also requires the credit bureaus to take the person off their marketing lists for credit and insurance offers sent without a request for five years, unless the person asks them not to.
The FTC says active duty servicemembers can place an active duty fraud alert. The FTC says it lasts one year and can be renewed for the length of a deployment. The FTC says an active duty alert also requires the credit bureaus to remove the servicemember’s name from lists used to send unrequested credit and insurance offers for two years, unless the servicemember asks to be added back.
Children, servicemembers, and other notes
The FTC says anyone can freeze their credit report for any reason, even if identity theft has not occurred. The FTC says a credit freeze is especially important if a Social Security number or other information was exposed in a data breach or misused by an identity thief. The CFPB notes that freezes are free for children under 16, and guardians, conservators, or those with a valid power of attorney can get a free freeze for the person they represent.
The FTC says parents or guardians can request a free credit freeze for a child under 16 to make it harder for someone to open new accounts in the child’s name. The FTC says the freeze stays in place until the credit bureaus are told to remove it, and the process for a minor is different than for an adult. The FTC points to instructions from each bureau.
The FTC says active duty servicemembers and National Guard members are eligible for free electronic credit monitoring to help spot issues that could be the result of identity theft. The FTC says to sign up by contacting each of the three credit bureaus. The CFPB cautions not to confuse freezes with locks, which may have monthly fees; it says a freeze is the option with protections guaranteed by federal law.
Where to learn more
The FTC directs people to IdentityTheft.gov to report identity theft and get a personal recovery plan. The CFPB says complaints about problems placing a credit freeze or fraud alert can be submitted online or by phone. The FTC also provides information on getting free credit reports and says it is a good idea to regularly check what is in a credit report to spot signs of identity theft.