How to Put a Fraud Alert on Your Credit

A fraud alert is a free flag that the credit bureaus put on your credit file. When the alert is in place, any lender who is asked to open a new credit card, loan, or account in your name has to take an extra step to confirm the request is really from you. They must call your phone number or take other action to verify the identity of the person applying. This extra step blocks most identity thieves cold, because they do not have your phone and cannot answer your calls.

There are three big credit bureaus in the United States: Equifax, Experian, and TransUnion. The wonderful part is that you only need to contact one of them. By federal law, the bureau you call has to tell the other two within twenty-four hours. So one ten-minute phone call or one online form covers all three. The fraud alert is free, no matter which bureau you choose.

There are three kinds of fraud alerts. The basic one-year alert is right for most people who have lost a wallet, gotten a suspicious phone call, or seen a charge they did not make. It lasts twelve months and renews if you ask. The extended seven-year alert is for people who have already been the victim of identity theft and have a police report or FTC report to prove it. The active duty alert is for members of the military who are deployed. The one-year alert is the most common and what most people set up.

A fraud alert is different from a credit freeze. A freeze is stronger and locks your credit file completely so nobody can open a new account, including you, until you unlock it. A fraud alert adds a phone-call check. For most situations, the alert is the right starting point. If you know your information has been stolen, a freeze on top of an alert is the safest setup. Both are free now, and both can be turned off any time.

Before you start, gather a few things: your full name as it appears on your driver's license, your current address, your previous address if you have moved in the last two years, your date of birth, your Social Security number, and a working phone number where lenders can reach you. The whole process takes about ten minutes online and slightly longer by phone. Once the alert is set, watch for any letters from credit card companies confirming new applications. If you get one for an account you did not open, that is a red flag of identity theft and you should call the credit bureau again to report it.