Staying safe online can be tricky. One tool you might not have considered is setting up a fraud alert on your credit file, which is maintained by a credit report bureau like Equifax or Experian. By adding an alert to your file, you can stay informed if someone attempts to access your credit.
Types of credit report fraud alerts
The main credit bureaus offer a few different types of fraud alerts on your credit file. Knowing the differences can help you pick the right one for your situation:
Credit freezes limit access to your report, meaning credit accounts like new credit cards or auto loans can’t be opened on your file while it’s frozen. There is no fee to apply or lift a credit freeze.
Initial fraud alerts typically last for one year but can be renewed afterward for longer coverage, if needed.
Extended fraud alerts last for seven years as a precautionary measure if you know your credit file has been compromised. If your identity has been stolen, you’ll need to complete a report with the FTC or file a police report before setting up an extended alert.
A credit freeze is the strongest defense. But that approach can take time and effort to remove if you need to access your credit to open a new credit card or apply for an apartment that requires a hard credit check.
How to place a fraud alert on your credit report
To set up a fraud alert, simply reach out to any one of the three credit bureaus: Equifax, Experian or TransUnion. The bureau you choose is required to notify the remaining two to ensure your alert is applied across all three. However, if you’d like to set up a credit freeze, you’ll need to contact each bureau independently.
Benefits of having a fraud alert
You don’t need to wait until someone attempts to access your credit file to take preemptive measures, and setting up a fraud alert is a free service. You’ll be notified if anyone attempts to access your credit file, allowing you time to take necessary steps to protect yourself.
While it can create some extra steps if you’d like to apply for new credit, fraud alerts can be worth it because they help you avoid more significant consequences from a compromised account.
Monitoring your credit report with fraud alerts
Once you’ve set up a fraud alert, take a moment to review your overall credit report to ensure all existing accounts and transactions were authorized by you. Then you can go about your daily spending and normal financial behavior. But even with an alert in place, regularly check your credit report to stay on top of any unexpected changes.
Responding to identity theft with fraud alerts
If you suspect your account may have been compromised, setting up a fraud alert adds another line of defense to your credit file. These methods work a bit like two-factor authorization on an app: You’ll be contacted to confirm it’s actually you trying to access your credit.
If you receive notice that someone else is trying to use your credit, be sure to report the attempt to the appropriate authorities. And if you’d like to bolster your account’s security, consider a temporary credit freeze on top of your fraud alert.
Fending off fraud
Taking steps to prevent cybercriminals from accessing your credit is a vital protection for your finances. Luckily, these free protections help ensure you’re aware of any illegitimate attempts to use your accounts. Keep them in your arsenal of cybersecurity tools to help protect your identity and credit online.
