What is credit protection?
Definition
Credit protection is any step that makes it harder for someone to open credit in your name. In the US, the two free tools are a credit freeze, which blocks new accounts, and a fraud alert, which makes lenders verify your identity first.
- Category
- Identity
- Also called
- credit freeze and fraud alert, credit report protection
- Last updated
Credit protection covers the things you do to stop identity thieves from borrowing money as you. The FTC describes two main tools, and they work differently.
A credit freeze blocks new credit accounts from being opened in your name. It lasts until you lift it, it's free, and it doesn't affect your credit score. You place it with each of the three credit bureaus, Equifax, Experian and TransUnion. When you need credit yourself, you lift the freeze temporarily. The FTC suggests finding out which bureau a lender will use and lifting the freeze only at that one.
A fraud alert doesn't stop lenders from seeing your report. It tells them to verify your identity before they grant new credit in your name. You contact one bureau, and that bureau must tell the other two. An initial alert lasts one year and can be renewed. An extended alert lasts seven years, but it's for people who have already been through identity theft and filed an FTC identity theft report at IdentityTheft.gov or a police report.
You can use both together. Having a freeze doesn't stop you from adding a fraud alert.
Where this fits
A typical case: someone buys a stolen name, birth date and Social Security number from a breach and applies for a store card. With a freeze in place, the lender can't pull your report, so the application stalls. What a freeze doesn't cover is existing accounts, which is why you still need to check your statements.
The details above are US rules. Other countries have their own systems, so check with the credit reference agencies where you live.
Credit protection vs. paid monitoring
Credit monitoring tells you after something changes on your report. A freeze acts before. The FTC's guidance on freezes is that they're free, so you don't need to pay for the basic version of this protection.
How to protect yourself
- 1
Freeze your credit at all three bureaus
Contact Equifax, Experian and TransUnion separately. It's free and lasts until you lift it. If you're about to apply for a loan, lift it only at the bureau the lender uses.
- 2
Add a fraud alert if you're not ready to freeze
One call or form to one bureau covers all three. It lasts a year and you can renew it.
- 3
Freeze your child's credit
The FTC says that if your child is under 16, you can request a free freeze to make it harder for someone to open accounts in their name.
- 4
Cut down what thieves can find about you
Identity thieves start with your name, address and phone number. Serus finds where those are listed on data brokers and people-search sites and removes them, which makes you a harder target.
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 freeze hurt my credit score?
No. According to the FTC, a freeze doesn't affect your credit score.
Does a credit freeze cost anything?
No. Placing, lifting and removing a freeze is free under the FTC's guidance.
Do I need both a freeze and a fraud alert?
You don't need both, but you can have both. A freeze blocks new accounts. An alert makes lenders verify who you are.
How long does a fraud alert last?
An initial fraud alert lasts one year and can be renewed. An extended alert lasts seven years and requires an identity theft report.
Sources
Something wrong or out of date? Tell us and we'll re-check it.