Fraud Alert Vs Credit Freeze

A fraud alert and a credit freeze are two important tools to fight identity theft. What is the difference between them and which is better, A fraud alert is a flag that credit agencies put on yoru credit report. Initial fraud alert - Stays on your credit report for 90 days but can be renewed. Extended Fraud Alert - Only available to people who had had their identity stolen. The problem with fraud alerts is that even though lenders are supposed to contact you to verify, sometimes they do not.

Also, they are not required by law to do so; only to have "reasonable policies and procedures". A credit freeze is a lock that will prevent new lenders from being able to access your credit report at all. Many states explicitly require credit bureaus to make credit freezes available, but as of November 2007 the three main bureaus (Experian, Equifax, TransUnion) make it available in all 50 states.

When you want to apply for credit, you need to request the credit agency to lift the freeze, then the lender can access the report, and then you request that the freeze be reinstated. The problem with a credit freeze is that in most fees there is a fee to initiate a freeze, another fee to lift it, and another fee to re-instate it.

In some states no fees apply if you have been a victim of identity theft. Also there may be a delay in having the lock lifted. In most states, the agencies are given 3 days to lift it. A credit freeze will definitely provide more protection than a fraud alert because it totally locks down your credit report to new lenders.

However, with the credit freeze there is a trade-off with convenience. The good news is, it is not an either/or proposition - if you are concerned about identity theft, you can do both! Just contact three three main credit bureaus and request that they be set up, or use an Identity Protection Service to do it for you.

Diminishing salesThe harder that you lose the fight against credit card fraud, the fewer sales that you will end up making, and that will ultimately kill your business. While credit card fraud may only take up a small percentage of the transactions that you encounter on a given day, how you deal with them is of the utmost importance. Fraud is like a cancer to a business. Refusal to treat it will only result in the spread of its damaging effects. When you take a proactive stance, you stand in favor of your customers, and when they see that, you will have more of them to stand up for.

On the site, you can request a free initial security alert be added to your credit report to prevent further fraudulent activity. The security alert lasts for 90 days and will notify creditors that your information may have been compromised. It displays on the credit report and asks potential creditors who view your report to verify the identification information used by an applicant before granting credit in your name.

When you add the alert you can also request a free copy of your credit report. You can then review the report and dispute any information that you believe is fraudulent. If you find evidence of fraud, go to your local police department and file a police report or identity theft report. Provide a copy of the police report to Experian to request that a 7-year fraud victim statement be added to your credit report.

In severe cases of identity theft, you can request a security freeze. A security freeze is designed to prevent credit, loans and services from being approved in your name without your consent. If you are a victim of credit fraud, a credit freeze is free. Keep in mind, a security freeze may delay or interfere with the timely approval of any subsequent requests or application you make regarding new credit, loans or services.

Before applying you must request that the freeze be lifted and provide a PIN number in order to do so. Additionally, Experian offers a product called Experian IdentityWorks to help safeguard your identity and credit. Do you have questions about credit, Join our live video chat every Tuesday and Thursday at 3:00 p.m. ET on Periscope. Rod Griffin, Director of Public Education at Experian, is available to answer your questions live.

The score you receive with Identity Guard is provided for educational purposes to help you understand your credit. It is calculated using the information contained in your TransUnion credit file. Lenders use many different credit scoring systems, and the score you receive with Identity Guard is not the same score used by lenders to evaluate your credit.

Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group‚ Inc. The description herein is a summary and intended for informational purposes only and does not include all terms‚ conditions and exclusions of the policies described. Please refer to the actual policies for terms‚ conditions‚ and exclusions of coverage. Coverage may not be available in all jurisdictions. If you do not cancel your membership within the trial period, your card will be charged either a monthly or annual fee, depending on the membership plan you choose. You may cancel your membership anytime simply by contacting us.

Credit is important. For many Americans, it is the primary means to acquire products and services. It's indispensable and convenient, and it's for this reason that it is equally valuable to identity thieves. It's no secret that identity fraud affect any consumer age group these days. Young or old, people get victimized in every imaginable way.

It is gravely causing a lot of damage offline or online. Because of this, the need for identity theft protection is becoming a lot stronger by the minute. The extensive fight against id theft is an ongoing and serious effort. Consumers should participate in the battle against id fraud. An initial step that they can make is to know what it is and how it can be prevented.



If basic information is disseminated, then initiatives can be taken. One of the most common bridges to id theft is credit card fraud. This kind of theft can happen anywhere at any given time. To enhance the personal credit monitoring done at home, credit protection services should be acquired. Personal monitoring and credit monitoring are common ways of keeping identity theft at bay. When these are done effectively, financial credibility is secured.