Fraud Alert vs. Credit Freeze: Which One Should You Use?

Data breaches are at an all-time high, with over 217 million victim notices going out last year, according to the Identity Theft Resource Center (ITRC). Protecting your credit from thieves is a smart move. Putting a credit freeze or fraud alert on your credit report provides better security, but these services are fundamentally different.

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Key Takeaways

• A fraud alert tells lenders to take extra steps to verify your identity before opening new credit in your name. Initial alerts last one year, extended alerts last seven years for confirmed identity theft victims and active-duty alerts protect deployed military members.

• A credit freeze blocks lenders from accessing your credit report entirely, stopping thieves from opening new accounts. It is free, lasts indefinitely and you can thaw it anytime — but you must contact all three bureaus separately.

• Pick a fraud alert if you suspect risk but still need to apply for credit soon. Choose a freeze for the strongest protection after confirmed identity theft. Neither option affects your credit score.

Summary generated by AI, verified by MoneyLion editors

Credit Freeze vs. Fraud Alert: At a Glance

Unsure of which security measure to choose? Consult these common use-cases:

• If you’re worried about, but unsure of whether your data has been compromised, choose an initial fraud alert.

• If you’ve experienced identity theft, but need to apply for credit, choose an extended fraud alert.

• If you’ve experienced identity theft, don’t need to apply for credit and want the highest level of protection, choose a credit freeze.

• If you’re a military member about to deploy, choose an active-duty alert.

What Is a Fraud Alert?

A fraud alert is a warning you can ask major credit bureaus, Equifax, Experian or TransUnion, to add to your credit report. It directs lenders to take extra steps to confirm your identity before approving new credit in your name.

There are three major types of credit report fraud alerts.

Initial Fraud Alert

An initial fraud alert places a one-year notice on your credit report that requires lenders to call you or make other reasonable efforts to verify your identity before approving, issuing or modifying your credit accounts.

It’s free to set up, and you can request one without filing a formal police report. That makes initial fraud alerts a solid frontline defense against identity theft following these events:

• A data breach

• Phishing attack

• Stolen wallet

• Other incidents where personal or financial information may have been compromised, but not used

You can remove initial fraud alerts at any time or choose to extend one for additional one-year periods.

Extended Fraud Alert

An extended fraud alert places a notice on your credit report for up to 7 years that similarly requires additional verification by lenders.

• It’s free, but only available if you have a police report or Federal Trade Commission (FTC) complaint confirming you’re a victim of identity theft.

• They’re a good fit for identity theft victims seeking longer, stronger protections after the crime.

• You can remove one early or renew one after 7 years, though you’ll need to resubmit your FTC or police report to do the latter.

Extended fraud alerts also carry additional protections. For example, the credit bureaus must remove you from their marketing lists for pre-screened credit and insurance offers for 5 years, unless you specify otherwise.

Active-Duty Alert

An active-duty alert is a free, one-year notice that military personnel can add to their credit reports before deployment.

• It requires lenders to take additional measures to confirm your identity before issuing new credit, making it more difficult for would-be fraudsters to open unauthorized accounts in your name.

• Active-duty alerts also require the credit bureaus to block you from unsolicited credit and insurance offers, but only for two years.

• You can remove or renew active-duty alerts to reflect your length of deployment.

What a Credit Report Fraud Alert Does

• Requires lenders to take extra steps to check your identity before approving new credit

• Makes it harder for thieves to open credit accounts in your name

• Automatically lasts a set time period

• Protects you across all three credit bureaus

• Allows you to continue to apply for credit — no need to remove the alert

What Credit Report Fraud Alert Doesn’t Do

• Block access to your credit report.

• Prevent the opening of new credit accounts.

• Guarantee lenders will catch or stop all fraud.

• Protect existing credit accounts from unauthorized charges or withdrawals.

• Eliminate the need for credit monitoring.

What Is a Credit Freeze?

A credit freeze restricts access to your credit report so that lenders can’t view it and issue new financing in your name. Its key features include:

• Powerful protection against identity theft: Because lenders can’t access, assess and approve of your credit, thieves can’t apply for and open credit accounts in your name. Many credit experts consider credit freezes the best way to protect your credit if your data has been hacked.

• Free access: Credit freezes are free to request, use, lift and remove under the Fair Credit Reporting Act. Note: Credit reporting agencies may offer paid services that include a “credit lock,” which similarly blocks access to your credit report. To avoid fees, request a “credit freeze” instead.

• No time limits or usage restrictions: A credit freeze stays in place until you contact the credit bureaus to remove it. You can also freeze and unfreeze your credit whenever you want, as many times as you want.

• “Thawing” abilities: The big downside to a credit freeze is that it can impede your ability to apply for new credit. Fortunately, you can “thaw” the freezes on each of your reports if you need to, usually by contacting the credit reporting bureaus online or over the phone.

What a Freeze Does Not Stop

While credit freezes offer top-tier protection against identity theft, they still have some positive and negative limitations. Namely, a credit freeze doesn’t prevent:

• Monitoring your credit or checking your credit score

• Access by existing creditors

• Government or court-ordered entities from viewing your credit file

• Certain background checks, like employment, utility or tenant screenings

• Pre-screened credit and insurance offers, unless you opt out separately

• Fraudulent use of existing credit accounts

• Use of your Social Security number for tax, insurance or employment fraud

Fraud Alert vs. Credit Freeze: What’s the Difference?

Fraud alerts and freezes are commonly confused terms. Here’s a look at their major differences:

Which One Should You Choose?

Use this quick guide to choose between a fraud alert vs. credit freeze.

• Worried about potential identity theft? Consider an initial fraud alert.

• Was your identity stolen? Consider an extended fraud alert or a credit freeze.

• Want maximum protection? Consider a credit freeze or both options.

• Applying for new credit soon? Consider a fraud alert.

• Not applying for new credit soon? Consider a credit freeze.

How To Place a Fraud Alert

Use the following steps to place a fraud alert on your credit report.

1. File an identity theft report: You can do so with the local authorities or by filing a complaint with the FTC at IdentityTheft.gov. Ask for and save a copy of your report — you’ll need to send it to the credit bureaus to implement an extended alert.

2. Gather your documentation: In addition to an identity theft report, you may need to provide your Social Security number, date of birth, a government-issued ID, and proof of address via a bank statement or utility bill.

3. File your request with one of the three credit bureaus: You can do so online, over the phone or by mail. Follow the instructions provided by Equifax, Experian and TransUnion. If requesting an extended alert, you’ll need to upload or mail your identity theft report to the bureau in question.

4. Wait for confirmation: You only need to request a fraud alert with one credit bureau. That bureau will notify the other two bureaus and ask them to place alerts on your credit reports as well.

What You’ll Need

• Government-issued ID, like a driver’s license or passport

• Proof of address, such as a utility bill or a bank statement

• Completed fraud alert request form if submitting by mail

• Identity theft report, if requesting an extended fraud alert

How To Place, Lift or Remove a Credit Freeze

Here’s how to request and manage a credit freeze.

1. Request a freeze: You can do so online, by phone or by mail. You’ll need to follow the bureau’s designated steps to access and freeze your credit profile.

2. Save your password or PIN: You’ll need these credentials later to thaw, refreeze or unfreeze your credit reports.

3. Contact the other two bureaus and repeat the process: Unlike when you file a fraud alert, you’ll need to freeze your credit individually with each bureau.

4. Lift or remove freezes, as needed: The easiest way to do so is to log into each bureau’s online account and request removal or a thaw for a specific time period. You can also do so over the phone or by mail.

5. Protect your credit: One of the best ways to keep identity thieves at bay is to carefully monitor and control your credit. There are apps that offer free access to your credit report and credit score, along with alerts and personalized insights to improve your standing.

Bureau Contact Information

Here’s where to contact each credit bureau for fraud alerts, freezes and other credit protection requests.

Equifax

• Fraud alert website

• Credit freeze website

• Phone: 1-888-378-4329

• Mailing address: P.O. Box 105788, Atlanta, GA 30348-5788

Experian

• Fraud alert website

• Credit freeze website

• Phone: 1-888-397-3742

• Mailing address: P.O. Box 9554, Allen, TX 75013

TransUnion

• Fraud alert website

• Credit freeze website

• Phone: 1-800-916-8800

• Mailing address: P.O. Box 160, Woodlyn, PA 19094

What To Do Next

• Assess your exposure, risk tolerance and loan needs.

• Choose between a fraud alert and a credit freeze.

• If opting for an alert, decide between an initial or an extended one.

• If opting for an extended alert, file an FTC complaint or police report.

• If opting for an alert, contact a credit bureau.

• If opting for a freeze, contact all three credit bureaus.

• Keep an eye on your financial accounts for unauthorized transactions.

• Monitor your credit with an app.

Common Questions About Fraud Alerts and Freezes

Does a fraud alert affect your credit score?

A fraud alert won’t affect your credit score, as it bears no relation to your ability to manage credit. Instead, it lets lenders know you’d like them to take added precautions before extending new credit in your name, due to a data breach or other external circumstances.

Does a credit freeze affect your credit score?

A credit freeze won’t affect your credit score. Instead, it blocks new lenders from viewing your credit report and issuing new credit in your name. During a credit freeze, existing lenders continue to report to the credit bureaus, so your credit score can change — positively or negatively — while one is in effect.

Do you need to freeze all three bureaus?

You must request a credit freeze with each credit bureau to ensure maximum protection against identity theft. Otherwise, the freeze only applies to the bureau you’ve contacted. Unlike fraud alerts, it won’t alert the others when you request a credit freeze.

How do you lift a freeze when applying for credit?

You can lift a freeze when applying for credit by contacting each credit bureau online, over the phone or by mail.

Can you keep monitoring your credit with a freeze?

You can and should keep monitoring your credit with a freeze in place. It doesn’t block your access to your credit report, and existing creditors will report account activity to the credit bureaus, which can affect your score.

Do you need both a fraud alert and a freeze?

Whether you need a fraud alert and a credit freeze depends on your exposure, financing needs and preferred level of protection.

A credit freeze blocks access to your credit report and, thus, provides more security than a standalone fraud alert.

But having a fraud alert on top of a credit freeze could provide added peace of mind if you feel at serious risk of identity theft.

Key Terms

• Fraud alert: A notice on your credit report that tells lenders to verify your identity before opening new credit in your name.

• Initial fraud alert: A one-year fraud alert you can place if you suspect identity theft or your personal information may have been exposed.

• Extended fraud alert: A seven-year fraud alert for identity theft victims who submit an FTC identity theft report or police report.

• Active-duty alert: A one-year fraud alert for deployed service members that adds identity checks and limits prescreened credit and insurance offers.

• Credit freeze: A security measure that restricts access to your credit report so new lenders usually can’t open credit in your name.

Summary generated by AI, verified by MoneyLion editors

Sources

• USA.gov. “How to place or lift a security freeze on your credit report.”

• MyFICO. 2024. “Who Can Check Your Credit After You Add a Freeze, Lock or Fraud Alert?”

• Consumer Financial Protection Bureau. 2025. “What is a credit freeze or security freeze on my credit report?”

• Federal Trade Commission. “Free credit freezes are here.”

• USA.gov. “How to place or lift a security freeze on your credit report.”

• Identity Theft Resource Center. 2026. “2025 Data Breach Report.”

• Federal Trade Commission. “Credit Freezes and Fraud Alerts.”