Understanding Credit Freezes and Fraud Alerts: Key Differences and Uses

The Federal Trade Commission (FTC) reported that people lost more than $12 billion to fraud in 2024. So, monitoring and defending your credit and financial information may be more important than ever. Credit freezes and fraud alerts are powerful tools that can help safeguard your financial identity in different scenarios. Understanding how they work and when to use them is one key to keeping your credit safe.

What is a credit freeze?

A credit freeze, or security freeze, is a security measure that restricts access to your credit reports. When you freeze your credit, lenders and creditors cannot access your credit report to process a credit card or loan application unless you temporarily lift the freeze, making it more difficult for identity thieves to open new accounts in your name.

That said, note that a credit freeze cannot block access completely. The credit bureau can send your report to legitimate financial institutions, government entities or other companies that request to view your credit report for appropriate reasons, including your current creditors, companies responding to non-credit applications (such as for a job or insurance policy), creditors and marketing companies, government agencies, debt collectors, and identity verification companies. You can also still view your credit report yourself during a credit freeze.

How a credit freeze works

When you place a credit freeze, it locks your credit file, preventing unauthorized access. This is particularly useful if you suspect identity theft or are already a victim of identity theft. By restricting access to your credit report, a freeze ensures that no new accounts (such as loans or credit cards) can be opened in your name without unfreezing your report.

You may want to consider a credit freeze:

• After a data breach exposing sensitive information.
• If you notice unauthorized accounts or activity on your credit report.
• To protect against future fraud if you’re considered “high risk” for identity theft.

Factors that increase your risk of identity theft can include using simple or repeated passwords, sending sensitive information via unencrypted email, clicking on phishing links or failing to monitor your credit regularly.

How to place and lift a credit freeze

To place a credit freeze

To place a credit freeze, you must contact each credit bureau (Equifax, Experian and TransUnion) online, by phone or by mail. You must request and manage the freeze separately with each bureau.

P.O. Box 9554
Allen, TX 75013
| TransUnion
P.O. Box 160
Woodlyn, PA 19094
| Equifax Information Services LLC
P.O. Box 105788
Atlanta, GA 30348 |

If making the request online, you’ll need to log into your account and go to the credit freeze management center (it may look slightly different on each bureau’s site but the language should be similar.) This may be the fastest and easiest way to make the request. Some credit bureaus also have a mobile app you can use to freeze and unfreeze your report, which may be just as quick as going online.

If you’re freezing your credit over the phone, you may need to verify your identity using personal information like your:

• Social Security number
• Proof of address (such as a utility bill or lease agreement)
• Valid government-issued ID
• Pay stubs or tax forms

If requested via mail, you may also need to download and fill out a form and include copies of the above documents. Check each bureau's requirements to ensure you have all of the information you need.

Freezing and unfreezing your credit can be quick if done online; credit bureaus technically have up to one business day to complete an online request. It may take up to three business days if you make the request via mail.

When requesting the freeze, be sure to specify whether you’re freezing your credit temporarily and for how long, or indefinitely.

To lift a credit freeze

Contact the credit bureau(s) where the freeze was placed and let them know you’d like to unfreeze your credit. If you placed a freeze with all three credit bureaus, you must contact all three separately. Like when you freeze your report, you can request to lift a freeze online, by phone or by mail. Indicate whether you’re lifting the freeze temporarily or permanently.

What is a fraud alert?

A fraud alert is a notification system that warns creditors and lenders to take extra precautions when verifying your identity. Unlike a credit freeze, it doesn’t block access to your credit report but instead adds an extra layer of security to help monitor and defend your identity and information.

Types of fraud alerts

There are three primary types of fraud alerts:

• Initial fraud alert: These are notices placed on your credit report that signal to potential creditors that you may be a victim of identity theft. It’s most ideal for those who suspect but haven’t confirmed fraud. This alert lasts for 1 year and is renewable if you need it.
• Extended fraud alert: These alerts are specifically designed for confirmed victims of identity theft, requiring them to provide proof (like a police report or Federal Trade Commission (FTC) identity theft report) to place the alert. It lasts for 7 years on a credit report.
• Active-duty alert: Specifically for military personnel on active duty, this alert lasts for one year and can be renewed. It acts as protection against potential identity theft while deployed overseas or away from their usual duty station. It also removes the service member from most pre-approved credit offers for 2 years.

How to set up a fraud alert

To set up a fraud alert, you only need to contact one of the three credit bureaus: Alerts placed at one bureau will automatically be shared with the other two. You can request a fraud alert online (often the fastest way), by phone or by mail. Decide which type of fraud alert is applicable to your situation (initial, extended or active duty) and be prepared to supply personal information and supporting documents if necessary.

Alerts remain active for their designated timeframes, but you can renew or remove them as needed. Note you can request a renewal of an existing fraud alert up to 3 months before it’s set to expire. For initial fraud alerts and active-duty alerts, this will extend the alert for one additional year. For extended fraud alerts, it will extend the alert for 7 more years.

To remove a fraud alert, you usually have to contact each credit bureau individually. This can be done online, by phone or by mail.

Credit freeze vs. fraud alert: Key similarities and differences

When should you consider a credit freeze or alert?

When to use a credit freeze

If you’re not applying for new credit and want to ensure your credit is secure, consider using a credit freeze. You may also want to freeze your credit if you suspect you are a victim of identity theft or fraud or you’re at high risk of personal information exposure.

When to use a fraud alert

Use fraud alerts when you want to monitor your credit for unusual activity without restricting access to new credit. A fraud alert can be a good idea if you are a victim of identity theft or fraud or are on active duty, as this can help further protect your credit.

FAQs on credit freezes and fraud alerts

Does a credit freeze affect my credit score?

No, placing a credit freeze does not impact your credit score or credit history based on the report you’re freezing.

Can I apply for credit while my account is frozen?

You cannot get approved for credit if your account is frozen, so if you want to apply for credit, you’ll have to temporarily lift the freeze. This can usually be done online or by contacting the credit bureaus via phone or mail. Tell them you’d like to temporarily lift the freeze and let them know the date to unfreeze and refreeze your credit.

How long does it take to freeze or unfreeze my credit?

Freezing or unfreezing your credit may happen instantaneously when the request is placed online, though the credit bureaus have up to 1 hour to complete an unfreeze request. Phone or mail requests to freeze may take several days (up to 3 after receiving the request) to process.

Are there any fees associated with credit freezes or fraud alerts?

No, both credit freezes and alerts are free services offered by all three major credit bureaus.