Freeze Your Credit and Set Up Fraud Alerts

If your Social Security number or other personally identifiable information (PII) was exposed in a data breach, consider freezing your credit to prevent cybercriminals from opening new accounts or taking out loans in your name.

A credit freeze restricts access to your credit report, making it harder for thieves to use your information for fraudulent purposes.

In addition to a credit freeze, you can set up fraud alerts with the credit bureaus. A fraud alert notifies creditors to take extra steps to verify your identity before opening any new accounts. This additional layer of security can be useful if you’re concerned about identity theft but aren’t ready to fully freeze your credit.

When Should You Use These Free Protection Tools?

Both fraud alerts and credit freezes offer important protection against identity theft, but they serve slightly different purposes depending on your situation.

When to Use a Fraud Alert:

You suspect fraud or identity theft, or your personal information has been exposed in a breach. A fraud alert will notify lenders to take extra steps to verify your identity before opening new credit accounts.
You’ve lost important personal documents, like your wallet or identification, which may expose you to identity theft risks.
You’re worried about potential breaches and want an added layer of security. Fraud alerts last for one year and are free to renew, offering ongoing protection with minimal disruption to your daily life.
You need ongoing access to credit. Unlike credit freezes, fraud alerts do not block you from applying for new credit. This makes them ideal if you still need flexibility with your credit while staying protected from fraud.

When to Use a Credit Freeze:

You’ve been a victim of identity theft. A freeze locks down your credit, preventing lenders from accessing your credit report and stopping thieves from opening new accounts in your name.
You want maximum protection. Freezing your credit at all three major bureaus (Experian, Equifax, TransUnion) is the most effective way to stop unauthorized access to your credit report.
You don’t plan to apply for new credit in the near future. Since a credit freeze prevents any new credit accounts from being opened, it’s best used when you don’t need immediate access to new lines of credit.
You’re looking for long-term security. A credit freeze lasts until you decide to unfreeze it, providing ongoing protection with no time limit.

Both tools are free and offer powerful ways to protect your credit and personal information. While fraud alerts provide flexibility and ease of use, credit freezes offer stronger, long-term protection for those who need it. Understanding your personal risk and needs will help you decide which tool to use.

How to Freeze Your Credit and Set Up Fraud Alerts:

You can freeze your credit for free by contacting the three major credit bureaus: Equifax, Experian, and TransUnion. You’ll need to freeze your credit with each bureau individually. If you need to apply for credit (e.g., a mortgage or car loan), you’ll have to temporarily lift the freeze.
To set up fraud alerts, simply contact one of the three bureaus, and they will notify the other two. Fraud alerts last for one year, but you can also request an extended fraud alert if you are a victim of identity theft, which lasts for seven years.

A credit freeze is one of the most effective ways to protect your financial identity, while a fraud alert can be a great option if you need to allow access to your credit but still want an added layer of protection.