Both a credit freeze and a fraud alert can stymie identity thieves that are looking to exploit your good credit and open accounts in your name. Each can halt the opening of new credit accounts.
So why are both offered, and what is the difference?
Credit Freeze
A credit freeze will block your credit file from all new accounts. This means that no one will be able to open new credit accounts in your name, including yourself.
A credit freeze costs $10 for each of the three main credit bureaus. You must place a freeze at all 3 for maximum protection. Additionally, you must pay $10 to remove the freeze at each bureau.
Make sure that you will not need to open new accounts in the near future. If you anticipate opening new credit accounts within the next year, you should probably avoid credit freezes and utilize fraud alerts instead.
Fraud Alert
A fraud alert is temporary. Unless you submit a police report to extend the term to 7 years, a fraud alert will only last 3 months.
You can submit a fraud alert as frequently as you would like. Also, submitting a fraud alert to one credit bureau will show up at the other two also.
The nice thing about a fraud alert is it is free. Also, most identity theft acts occur within 3 months of obtaining your private information.
If you need additional information about fraud alerts, you may contact the credit bureaus directly. You may also contact a counselor at the FTC (1-877-IDTHEFT [1-877-438-4338]; TDD: 1-866-653-4261; or www.ftc.gov/idtheft).
[…] credit card issuers to remove her name and access from your accounts. You may also wish to consider filing a fraud alert with the three main credit bureaus. If she has your social security number and she intends to do […]