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Fraud Alert vs. Credit Freeze

By Sarah Carini

Let's review the differences between fraud alerts and a credit freeze.

No one likes thinking about the potential threat of identity theft. However, it’s something we have to prepare for. The last thing you want to do is wait until you’ve been affected by a data breach, phishing scam, or other scheme that leaves your information open to fraudulent use.

There are two easy ways to help mitigate the threat of identity theft: fraud alerts and credit freezes. Both of these options can help prevent fraudulent activity from negatively affecting your credit score. Wondering what the difference is between fraud alerts vs. credit freeze? That’s why we’re here.

What's the difference between a fraud alert vs. credit freeze?

A fraud alert forces companies to verify your identity before granting any new credit in your name. That usually means they’ll call you to confirm that it’s really you trying to borrow money or open a new credit card. A fraud alert is free and lasts one year.

A credit freeze restricts access by prospective creditors to your credit reports until you lift the freeze with a PIN or password. That means that anyone – including you – cannot open any new accounts until the freeze is lifted. Similar to fraud alerts, a credit freeze is also free.

How do I set up a fraud alert?

Contact one of the three nationwide credit bureaus, Equifax, Experian, or TransUnion, and request a fraud alert. That bureau must notify the other two.

Follow the bureau’s instructions to verify your identity, and provide current contact information so lenders can reach you. If you choose an initial alert, set a reminder to review or renew it before the year ends.

How do I freeze my credit?

If you want to be fully protected, you should place a credit freeze with each of the three credit bureaus. You’ll need to give each bureau your name, address, date of birth, Social Security number, and other personal info. Once your freeze is in place, each bureau will give you a PIN or password that you’ll need to keep track of and use to lift the freeze when you need to.


When should I consider using a fraud alert or credit freeze?

Consider placing a fraud alert if you suspect your personal information may have been exposed or misused but still want lenders to access your credit report. It adds an extra identity-verification step when someone applies for credit in your name and may be useful after a suspicious email, phishing attempt, or lost wallet.

A credit freeze may be the better choice if you want stronger protection against new accounts being opened in your name — especially after a data breach, the loss of sensitive information like your Social Security number, or a confirmed case of identity theft. You can also freeze your credit as a preventive measure, even if you haven’t experienced fraud.

What fraud alerts and credit freezes don't prevent 

These tools focus on protecting against new-credit fraud. They don’t stop someone from making unauthorized charges on an existing credit card or accessing a compromised financial account. 

Continue checking account activity and credit reports, using strong, unique passwords, and enabling multifactor authentication where available.

How to temporarily lift a credit freeze

Planning to apply for an auto loan, mortgage, or credit card? Ask the lender which credit bureau or bureaus it will use. Then request a temporary lift with the relevant bureaus before the credit check.

You can specify a period for the lift so your report is frozen again afterward. Confirm that the window covers when your lender needs access.

According to the Consumer Financial Protection Bureau, bureaus must lift a freeze within one hour of receiving a request online or by telephone. Requests by mail can take up to three business days after receipt. Allow time to resolve any account-access or identity-verification issues.

Who should I contact?

Now that you know the difference between a fraud alert vs. credit freeze, let's review where to go if you suspect a potential threat to your credit. To contact the credit bureaus, here’s where you should go:

Want a copy of your credit report? You can also visit Annual Credit Report, a one-stop-shop to run all three reports together.

If you discover identity theft, visit IdentityTheft.gov for reporting and recovery guidance. If suspicious activity involves a Clearview account, contact Clearview promptly through an official contact channel.