Fraud Alerts vs. Credit Freezes: Which One Should You Use?
In today’s digital world, protecting your credit is just as important as building it. Whether you’re guarding against data breaches, identity theft, or unauthorized account openings, two of the most effective tools at your disposal are fraud alerts and credit freezes.
But which one is right for you?
Let’s break down how each option works, who should consider it, and when you might want to use both.
What Is a Fraud Alert?
A fraud alert is a notice you add to your credit report that tells potential lenders to take extra steps to verify your identity before approving credit.
Key features:
- It’s free to place
- Lasts one year by default (can be extended to 7 years in certain cases)
- Makes it harder for identity thieves to open accounts in your name
- Can be placed with just one credit bureau that bureau notifies the others
When to Use a Fraud Alert
A fraud alert is best if:
- You suspect your personal information has been stolen, but you still need access to new credit
- You’ve been a victim of identity theft
- You want to warn lenders to verify applications carefully without locking your reports entirely
Bonus: Fraud alerts do not prevent you from applying for credit they just add a layer of scrutiny.
What Is a Credit Freeze?
A credit freeze, also known as a security freeze, is a more aggressive form of protection. It completely blocks access to your credit report unless you unfreeze it.
Key features:
- Free to place and lift
- Remains in place until you remove it
- Must be placed with each bureau separately
- Prevents any new credit inquiries or applications unless lifted temporarily
When to Use a Credit Freeze
A credit freeze is ideal if:
- You’re not planning to apply for credit anytime soon
- You want to completely block unauthorized access to your credit reports
- You’ve experienced a serious identity theft issue
- You want maximum protection with minimal maintenance
Unlike fraud alerts, freezes require more involvement especially when lifting them temporarily for a mortgage or credit card application.
Side-by-Side Comparison: Fraud Alert vs. Credit Freeze
| Feature | Fraud Alert | Credit Freeze |
|---|---|---|
| Cost | Free | Free |
| Who Notifies Other Bureaus | One bureau (they notify the others) | You must contact each bureau separately |
| Duration | 1 year (renewable) | Indefinite (until you lift it) |
| Blocks New Credit Inquiries | No (but lenders are alerted) | Yes (report is inaccessible) |
| Allows Access to Own Reports | Yes | Yes |
| Affects Current Credit Use | No | No |
| Can Be Lifted Temporarily | Not needed | Yes, via PIN or online access |
| Best For | Mild concern or recent fraud | Strong security or confirmed identity theft |
Do They Affect Your Credit Score?
Neither fraud alerts nor credit freezes affect your credit score. They’re protective tools, not financial behaviors — so your payment history, credit utilization, and account age remain untouched.
Can You Use Both?
Yes — and in some cases, it’s smart to use both.
For example, if you’ve had your wallet stolen or your data leaked in a major breach, you might:
- Place a fraud alert so lenders double-check all applications
- Add a credit freeze for deeper protection if you’re not applying for credit soon
Remember, you can remove a fraud alert anytime and lift a freeze as needed.
How to Set Them Up
Fraud Alert
- Choose any one of the three major bureaus:
- Equifax: 1-888-766-0008 | equifax.com
- Experian: 1-888-397-3742 | experian.com
- TransUnion: 1-800-680-7289 | transunion.com
- Request a fraud alert and provide ID
- That bureau will alert the other two
Credit Freeze
- You’ll need to contact each bureau individually and create an online PIN or account:
Which Should You Choose?
Ask yourself:
- Are you actively applying for credit? → Fraud alert may be enough
- Are you concerned about serious ID theft or want maximum control? → Freeze your reports
- Want the strongest defense? → Use both
Pro Tip: If you’ve already been a victim of identity theft and filed a police report, you may qualify for an extended fraud alert (good for 7 years) instead of the default 1 year.
Final Thought: Take Control Before Criminals Do
Your credit is one of your most valuable assets don’t leave it unprotected. Whether you go with a fraud alert, a full freeze, or both, what matters most is taking proactive steps now.
It’s easier to stop fraud than fix it.
Next step: Already a victim or suspect something’s off? Learn How to Recover Your Credit After Identity Theft and start reclaiming your financial power.
