Fraud Alert vs. Credit Freeze: What's the Difference?

Data breaches are at an all-time high, with over 217 million victim notices going out last year, according to the Identity Theft Resource Center (ITRC). Protecting your credit from thieves is a smart move. Putting a credit freeze or fraud alert on your credit report provides better security, but these services are fundamentally different. 

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Key Takeaways

• The difference between a fraud alert and a credit freeze comes down to access: A fraud alert adds an identity-verification step, while a freeze blocks lenders from seeing your report at all.

• Both are free under federal law: You can place, lift and remove either at no cost, thanks to the Fair Credit Reporting Act.

• Fraud alerts are easier to manage: You contact one bureau, which notifies the other two, and lenders can still access your report after verifying your identity.

• A freeze requires contacting all three bureaus: Equifax, Experian and TransUnion each need a separate request, and you must thaw it before applying for credit.

• Alerts come in three types: A one-year initial alert, a seven-year extended alert for confirmed victims, and a one-year active-duty alert for deployed military.

• A freeze offers the strongest protection: It's best if you don't need new credit soon, and can be lifted online or by phone in as little as an hour.

Summary generated by AI, verified by MoneyLion editors

Fraud Alert vs. Credit Freeze: At a Glance

Unsure of which security measure to choose? Consult these common use cases:

• If you’re worried about, but unsure of whether your data has been compromised, choose an initial fraud alert.

• If you’ve experienced identity theft, but need to apply for credit, choose an extended fraud alert.

• If you’ve experienced identity theft, don’t need to apply for credit and want the highest level of protection, choose a credit freeze.

• If you’re a military member about to deploy, choose an active-duty alert.

What Is a Fraud Alert?

A fraud alert is a warning you can ask major credit bureaus, Equifax, Experian or TransUnion, to add to your credit report. It requires lenders to take additional steps to verify your identity before approving new credit in your name. Keep in mind that requesting a fraud alert entitles you to a free credit report from all three credit bureaus.  

There are three major types of credit report fraud alerts.  

Initial Fraud Alert

An initial fraud alert places a one-year notice on your credit report that requires lenders to call you or make other reasonable efforts to verify your identity before approving, issuing or modifying your credit accounts.  

It’s free to set up, and you can request one without filing a formal police report. That makes initial fraud alerts a solid frontline defense against identity theft following these events:  

• A data breach  

• Phishing attack  

• Stolen wallet  

• Other incidents where personal or financial information may have been compromised, but not used  

You can remove initial fraud alerts at any time or extend one for an additional one-year period.  

Extended Fraud Alert

An extended fraud alert places a notice on your credit report for up to seven years that similarly requires additional verification by lenders.  

• It’s free, but only available if you have a police report or Federal Trade Commission (FTC) complaint confirming you’re a victim of identity theft.  

• They’re a good fit for identity theft victims seeking longer, stronger protections after the crime.  

• You can remove one early or renew one after seven years, though you’ll need to resubmit your FTC or police report to do the latter.  

Extended fraud alerts also carry additional protections. For example, the credit bureaus must remove you from their marketing lists for pre-screened credit and insurance offers for five years, unless you specify otherwise.  

Active-Duty Alert

An active-duty alert is a free, one-year notice that military personnel can add to their credit reports before deployment.  

• It requires lenders to take additional measures to confirm your identity before issuing new credit, making it more difficult for would-be fraudsters to open unauthorized accounts in your name.  

• Active-duty alerts also require the credit bureaus to block you from unsolicited credit and insurance offers, but only for two years.  

• You can remove or renew active-duty alerts to reflect your deployment length. 

What a Credit Report Fraud Alert Does

• Requires lenders to take extra steps to check your identity before approving new credit

• Makes it harder for thieves to open credit accounts in your name

• Automatically lasts a set time period

• Protects you across all three credit bureaus

• Allows you to continue to apply for credit — no need to remove the alert

What Credit Report Fraud Alert Doesn’t Do

• Block access to your credit report

• Prevent the opening of new credit accounts

• Guarantee lenders will catch or stop all fraud

• Protect existing credit accounts from unauthorized charges or withdrawals

• Eliminate the need for credit monitoring

What Is a Credit Freeze?

A credit freeze restricts access to your credit report so that lenders can’t view it and issue new financing in your name. Its key features include:

• Powerful protection against identity theft: Because lenders can’t access, assess and approve of your credit, thieves can’t apply for and open credit accounts in your name. Many credit experts consider credit freezes the best way to protect your credit if your data has been hacked.

• Free access: Credit freezes are free to request, use, lift and remove under the Fair Credit Reporting Act. Note: Credit reporting agencies may offer paid services that include a “credit lock,” which similarly blocks access to your credit report. To avoid fees, request a “credit freeze” instead.

• No time limits or usage restrictions: A credit freeze stays in place until you contact the credit bureaus to remove it. You can also freeze and unfreeze your credit whenever you want, as many times as you want.

• “Thawing” abilities: The big downside to a credit freeze is that it can impede your ability to apply for new credit. Fortunately, you can “thaw” the freezes on each of your reports if you need to, usually by contacting the credit reporting bureaus online or over the phone.

What a Freeze Does Not Stop

While credit freezes offer top-tier protection against identity theft, they still have some positive and negative limitations. Namely, a credit freeze doesn’t prevent:

• Monitoring your credit or checking your credit score

• Access by existing creditors

• Government or court-ordered entities from viewing your credit file

• Certain background checks, like employment, utility or tenant screenings

• Pre-screened credit and insurance offers, unless you opt out separately

• Fraudulent use of existing credit accounts

• Use of your Social Security number for tax, insurance or employment fraud

How Long Does It Take To Lift a Credit Freeze? 

Lifting a credit freeze doesn’t take much time. If you request the lift online or by phone, it can take up to one hour. If you choose to request it via mail, it will take up to three business days.  

Lifting a credit freeze is free, and you can request a permanent or temporary lift depending on your situation. With a fraud alert, lenders can still access your credit report, and so there isn’t anything to “lift.” The lender will be required to verify your identity if a fraud alert is in place.  

Fraud Alert vs. Credit Freeze: Which One Should You Choose?

Fraud alerts and freezes are commonly confused terms. Here’s a look at their major differences:

Determine which option fits your situation:  

• Possible exposure, but still applying for credit soon: A fraud alert will work best since you want to avoid the hassle of freezing and unfreezing credit.  

• Confirmed identity theft: Alert the police, request a credit freeze and get an extended fraud alert.  

• Active-duty military: Request an active-duty alert that provides verification protection for up to a year.  

• Maximum protection: A credit freeze is the best option. 

Credit Lock vs. Credit Freeze   

A credit lock and credit freeze both block third-party lenders from accessing your credit report. The two differ in their approach. A freeze is free and a federally protected right, while a credit lock is a paid subscription with access through an app. Let’s look at how the two compare: 

How To Place a Fraud Alert

Use the following steps to place a fraud alert on your credit report.

1. File an identity theft report: You can do so with the local authorities or by filing a complaint with the FTC at IdentityTheft.gov. Ask for and save a copy of your report — you’ll need to send it to the credit bureaus to implement an extended alert.

2. Gather your documentation: In addition to an identity theft report, you may need to provide your Social Security number, date of birth, a government-issued ID, and proof of address, such as a bank statement or utility bill.

3. File your request with one of the three credit bureaus: You can do so online, over the phone or by mail. Follow the instructions provided by Equifax, Experian and TransUnion. If requesting an extended alert, you’ll need to upload or mail your identity theft report to the bureau in question.

4. Wait for confirmation: You only need to request a fraud alert with one credit bureau. That bureau will notify the other two bureaus and ask them to place alerts on your credit reports as well.

What You’ll Need

• Government-issued ID, like a driver’s license or passport

• Proof of address, such as a utility bill or a bank statement

• Completed fraud alert request form if submitting by mail

• Identity theft report, if requesting an extended fraud alert

How To Place, Lift or Remove a Credit Freeze

Here’s how to request and manage a credit freeze.

1. Request a freeze: You can do so online, by phone or by mail. You’ll need to follow the bureau’s designated steps to access and freeze your credit profile.

2. Save your password or PIN: You’ll need these credentials later to thaw, refreeze or unfreeze your credit reports.

3. Contact the other two bureaus and repeat the process: Unlike when you file a fraud alert, you’ll need to freeze your credit individually with each bureau.

4. Lift or remove freezes as needed: The easiest way is to log in to each bureau’s online account and request removal or a thaw for a specific period. You can also do so over the phone or by mail.

5. Protect your credit: One of the best ways to keep identity thieves at bay is to carefully monitor and control your credit. There are apps that offer free access to your credit report and credit score, along with alerts and personalized insights to improve your standing.

Bureau Contact Information

Here’s where to contact each credit bureau for fraud alerts, freezes and other credit protection requests.

Equifax

• Fraud alert website

• Credit freeze website

• Phone: 888-378-4329

• Mailing address: P.O. Box 105788, Atlanta, GA 30348-5788

Experian

• Fraud alert website

• Credit freeze website

• Phone: 888-397-3742

• Mailing address: P.O. Box 9554, Allen, TX 75013

TransUnion

• Fraud alert website

• Credit freeze website

• Phone: 800-916-8800

• Mailing address: P.O. Box 160, Woodlyn, PA 19094

What To Do Next

• Assess your exposure, risk tolerance and loan needs.

• Choose between a fraud alert and a credit freeze.

• If opting for an alert, decide between an initial or an extended one.

• If opting for an extended alert, file an FTC complaint or police report.

• If opting for an alert, contact a credit bureau.

• If opting for a freeze, contact all three credit bureaus.

• Keep an eye on your financial accounts for unauthorized transactions.

• Monitor your credit with an app.

Bottom Line 

A credit freeze is a strong protection because it blocks lenders and third parties from accessing your credit report. A fraud alert doesn’t block people from accessing your credit. The only caveat is that the lender or a third party must verify your identity.  

• If you’re not going to access your credit anytime soon, it’s best to request a credit freeze. It’s free to place and lift.  

• If you’re going to need to access your credit, but still want some protection, request a fraud alert. You’ll be saved from the hassle of the freeze-unfreeze cycle.  

• If you’ve had fraud or identity theft on your accounts, you’ll need extra protection: contact the police and file a report, freeze your credit and get an extended fraud alert.  

FAQs About Fraud Alerts and Credit Freezes 

Does a fraud alert affect your credit score? 

A fraud alert won’t affect your credit score, as it bears no relation to your ability to manage credit. Instead, it lets lenders know you’d like them to take added precautions before extending new credit in your name, due to a data breach or other external circumstances. 

Does a credit freeze affect your credit score? 

A credit freeze won’t affect your credit score. Instead, it blocks new lenders from viewing your credit report and issuing new credit in your name. During a credit freeze, existing lenders continue to report to the credit bureaus, so your credit score can change — positively or negatively — while one is in effect. 

How quickly can you lift a credit freeze? 

You can lift a credit freeze within an hour if the request is made by phone or online. If you choose to make the request via mail, it may take up to three business days. 

Do you get free credit reports after placing a fraud alert? 

You can get one free credit report from each bureau after placing a fraud alert. These credit reports are in addition to the free credit reports you can get weekly through annualcreditreport.com.  

What is the difference between a credit lock and a credit freeze? 

A credit lock is a paid subscription offered by credit bureaus or third-party vendors that lets you block access to your credit report. It’s typically built into an app for convenience, and prices can vary across providers. A credit freeze is free and a federally protected right. You can place a credit freeze on your credit reports so new lenders can’t open an account in your name.  

Can you freeze a child’s credit? 

Yes, you can freeze your child’s credit. To place a freeze on your child’s credit report, submit a request via mail to each of the bureaus. They will require a birth certificate, Social Security number and proof of guardianship. 

Key Terms

• Fraud alert: A notice on your credit report requiring lenders to verify your identity before issuing new credit.

• Credit freeze: A restriction that blocks lenders from accessing your credit report, stopping new accounts.

• Initial fraud alert: A free one-year alert anyone can place after a suspected data breach.

• Extended fraud alert: A free seven-year alert for confirmed identity theft victims with a report on file.

• Active-duty alert: A free one-year alert for deployed military members.

• Credit lock: A paid, app-based service that blocks report access but isn't a federally protected right.

• Thaw: Temporarily lifting a credit freeze so a specific lender can access your report.

• Identity theft report: An FTC or police report required to place an extended fraud alert.

Sources

• FTC — Credit Freezes and Fraud Alerts — Primary source confirming both are free, the alert durations and how each affects new credit.

• CFPB — What is a credit freeze? — Supports the free-freeze right under the FCRA and how to place or lift one.

• IdentityTheft.gov (FTC) 

• AnnualCreditReport.com 

Summary generated by AI, verified by MoneyLion editors

Elizabeth Constantineau, CFHC™, contributed to editing this article.

Rudri Bhatt Patel, CFHC™, contributed to the reporting for this article.

Photo credit: ArtMarie / iStock.com