Two tools for the same goal — but very different
Both a credit freeze and a fraud alert are designed to prevent new fraudulent accounts from being opened in your name. But they operate differently and offer different levels of protection.
The quick version: a fraud alert asks lenders to verify your identity more carefully. A credit freeze prevents lenders from seeing your report at all.
Fraud alerts
A fraud alert is a notice placed on your credit file that tells lenders to take extra verification steps before extending credit. When a lender sees a fraud alert, they're supposed to contact you directly using the information you provided before approving any new account.
Initial fraud alert:
- Lasts 1 year, renewable
- Free
- Available to anyone — you don't need to be a confirmed identity theft victim
- You place it with one bureau; they must notify the other two
- You remain able to apply for credit normally — lenders will contact you to verify
Extended fraud alert:
- Lasts 7 years
- Free
- Available only to confirmed identity theft victims (requires an Identity Theft Report from the FTC or a police report)
- Grants you two additional free credit reports from each bureau within 12 months
- Removes you from pre-screened marketing lists for 5 years
- Again, you only need to place it with one bureau; they notify the rest
Active duty alert:
- For active duty service members
- Lasts 1 year, renewable for the duration of deployment
- Removes you from pre-screened marketing lists for 2 years
How to place a fraud alert
Contact any one of the three bureaus — they're required to notify the others:
- Equifax: equifax.com/personal/credit-report-services/credit-fraud-alerts/
- Experian: experian.com/fraud/center.do
- TransUnion: transunion.com/credit-disputes/fraud
Credit freezes
A credit freeze (also called a security freeze) is stronger. It restricts access to your credit report entirely. When a freeze is in place, lenders cannot access your file at all — which means they can't approve new credit, period.
Key characteristics:
- Free for everyone under the Economic Growth, Regulatory Relief, and Consumer Protection Act (2018)
- Available to any consumer — not just identity theft victims
- Must be placed with each bureau separately (unlike fraud alerts)
- Does not affect your existing accounts or credit score
- Does not prevent you from getting pre-screened offers (unless you separately opt out)
- Remains in place until you lift it
When you need to apply for credit — a mortgage, car loan, new credit card — you lift the freeze temporarily for the lender you're applying with. You can specify a time window (e.g., lift for 24 hours) or lift indefinitely and then re-freeze after the application.
How to place a credit freeze
You must contact all three bureaus separately:
- Equifax: equifax.com/personal/credit-report-services/credit-freeze/ or 1-888-298-0045
- Experian: experian.com/security/credit-freeze.html or 1-888-397-3742
- TransUnion: transunion.com/credit-disputes/credit-security-freeze or 1-888-909-8872
You'll receive a PIN or password for each bureau, used to lift the freeze. Keep these safe.
Side-by-side comparison
| | Fraud Alert | Credit Freeze | |---|---|---| | Protection level | Moderate — lenders must verify your identity | Strong — lenders cannot access your file | | Cost | Free | Free | | Duration | 1 year (initial) or 7 years (extended) | Indefinite until you lift it | | Where to place | One bureau (they notify others) | Must place at all three separately | | Impact on credit applications | You can still apply; lenders contact you first | Must lift freeze before applying | | Affects existing accounts | No | No | | Affects credit score | No | No |
Which one should you use?
Use a fraud alert if:
- You suspect your information may have been compromised but haven't confirmed fraud
- You want to add a verification layer without restricting your ability to apply for credit freely
- You're in a period where you're actively opening new accounts
Use a credit freeze if:
- You're a confirmed identity theft victim
- You know a data breach exposed your SSN and aren't planning to apply for credit soon
- You want the strongest available protection against new fraudulent accounts
Many people use both. A credit freeze at all three bureaus plus a fraud alert is the most comprehensive protection available without credit monitoring services. You can have both simultaneously.
Don't forget ChexSystems and NCTUE
The three major bureaus aren't the only consumer reporting agencies. ChexSystems (used for bank account applications) and the National Consumer Telecom & Utilities Exchange (NCTUE, used by phone and utility companies) are separate. Freezes at Equifax, Experian, and TransUnion don't freeze those files.
If you're concerned about fraudulent bank accounts, you can also place a security freeze with ChexSystems at chexsystems.com.