Fraud Alerts vs. Credit Freezes — Which Should You Use?

When you are worried about identity theft, the two most common tools are fraud alerts and credit freezes. They sound similar but work very differently. A fraud alert is a note attached to your credit file asking lenders to take extra steps (like calling you) to verify your identity before opening a new account. A credit freeze, on the other hand, blocks lenders from pulling your credit report at all, so most applications get denied outright.

There are three types of fraud alerts you can place. An initial fraud alert lasts one year and is available to anyone — no proof required. An extended fraud alert lasts seven years and is only available to confirmed identity theft victims who have filed an FTC report at identitytheft.gov. An active-duty military alert lasts one year and is designed for service members who are deployed. The big advantage of fraud alerts: you only need to contact ONE bureau, and by law they must notify the other two automatically.

Which should you use? If you want the strongest protection and do not mind the small hassle of thawing when you apply for credit, a credit freeze is better. It blocks new accounts entirely. Fraud alerts are a good middle ground if you want some protection but not the extra step of managing a freeze. Many identity theft experts recommend doing BOTH: freezing your credit AND placing a fraud alert, for layered defense. If you are already a victim of identity theft, place an extended fraud alert AND freeze all three bureaus, then visit IdentityTheft.gov to start your recovery plan.