| Criterion | Credit Freeze | Fraud Alert |
|---|---|---|
| Legal basis | Credit freezes are governed by the Fair Credit Reporting Act as amended by the Economic Growth, Regulatory Relief, and Consumer Protection Act, which establishes a consumer right to place, temporarily lift, and remove a freeze. | Fraud alerts are also established under the Fair Credit Reporting Act, which provides for an initial one-year alert and an extended alert for consumers who submit an identity theft report. |
| Duration | A freeze remains in place indefinitely until the consumer removes it or lifts it for a defined period, so it does not expire on its own. | A standard fraud alert lasts one year. An extended fraud alert, supported by an identity theft report, lasts seven years. |
| Effect on access to the credit file | A freeze blocks most third parties from accessing the credit file for the purpose of granting credit, which generally prevents a new credit application from being processed until the freeze is lifted. | A fraud alert does not block access. It instructs a business to take reasonable steps to confirm the identity of the person applying before proceeding. |
| Where it is placed | A freeze must be placed separately with each of the three national credit reporting companies to cover all three files. | A fraud alert placed with one national credit reporting company requires that company to notify the other two, so one request covers all three files. |
| Effect on prescreened offers and existing accounts | A freeze stops prescreened credit and insurance offers, while existing creditors and certain permissible users can still access the file for account review, collection, and similar purposes. | A fraud alert does not stop prescreened offers, and it does not restrict access by existing creditors or other permissible users. |
| Removal and lifting | Removing a freeze or lifting it temporarily requires the consumer to use the personal identification number or password issued at placement. Rules limit what a company may charge for lifting or removing a freeze. | A fraud alert expires automatically at the end of its term, or the consumer may ask that it be removed earlier. |
Frequently asked questions
Does a fraud alert block a lender from seeing my credit report?
No. A fraud alert does not block access to the credit file. It asks the business to take reasonable steps to verify identity before extending credit, but the file itself remains available to permissible users.
Do I need to contact all three national credit reporting companies for a freeze?
Yes, for a freeze. Each of Equifax, Experian, and TransUnion maintains its own file, and a freeze must be placed separately with each company to restrict all three.
How long does each protection last?
A freeze stays in place until the consumer lifts or removes it. A standard fraud alert lasts one year, while an extended fraud alert supported by an identity theft report lasts seven years.
Can a freeze stop prescreened credit offers?
Yes. A freeze stops prescreened credit and insurance offers, which is a separate effect from its restriction on credit applications. A fraud alert does not stop prescreened offers.
Is there a cost to place a freeze or a fraud alert?
Federal law provides for free placement of credit freezes and fraud alerts with the national credit reporting companies. Certain charges for lifting or removing a freeze are also restricted by law, and states may impose additional limits.