What is a credit alert?
Definition
A credit alert usually means a fraud alert: a free notice on your credit file that asks lenders to verify your identity before opening new credit in your name. It can also mean a notification from a monitoring service.
- Category
- Identity
- Also called
- fraud alert, credit report alert
- Last updated
People use "credit alert" for two different things, and it helps to know which one you're looking at.
1. A fraud alert (placed on your credit file). The FTC describes a fraud alert as a free notice on your credit report that tells lenders to verify your identity before they open new credit. You place it by contacting one of the three nationwide credit bureaus, and that bureau must tell the other two.
2. A monitoring alert (sent to you). Credit monitoring services message you when something changes on your report, such as a new account or inquiry. The CFPB explains these services in its guidance on credit monitoring. They tell you after something happens. A fraud alert asks lenders to check before it does.
Types of fraud alert
- Initial fraud alert: lasts 1 year and can be renewed. Anyone who suspects they may be affected by identity theft can ask for one.
- Extended fraud alert: lasts 7 years, and requires an identity theft report from IdentityTheft.gov or a police report.
- Active duty alert: for servicemembers, lasts 1 year and can be renewed for the length of a deployment.
Alert vs. freeze
A fraud alert leaves your credit open, so you can still borrow. A credit freeze blocks access to your report until you lift it, so no one, including you, can open new accounts in the meantime. If you want the stronger lock, a freeze is the tool.
When to use one
Place a fraud alert if your wallet is stolen, your details turn up in a breach or you suspect someone is using your identity.
How to protect yourself
- 1
Place a fraud alert if you suspect identity theft
Contact one nationwide credit bureau. It is free, and it passes the alert to the other two.
- 2
Consider a credit freeze if you want a stronger lock
A freeze stops new accounts being opened until you lift it. It is free to place and lift.
- 3
Check your credit reports regularly
Look for accounts and inquiries you don't recognise. You can get your reports at annualcreditreport.com.
- 4
Reduce what scammers can find about you
Your address, date of birth and phone number on people-search sites make identity theft easier. Serus finds where your address and phone number are listed and removes them.
See where your personal data is exposed
Serus finds it on data brokers and people-search sites and removes it.
Frequently asked
Does a credit alert cost money?
A fraud alert is free. Monitoring services can be free or paid, so check before you sign up.
How long does a fraud alert last?
An initial alert lasts 1 year and can be renewed. An extended alert lasts 7 years and needs an identity theft report.
Is a fraud alert the same as a credit freeze?
No. An alert asks lenders to verify your identity. A freeze blocks access to your credit report until you lift it.
Sources
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