| Criterion | Fraud Alert | Credit Freeze |
|---|---|---|
| Core function | Instructs businesses that obtain a credit file to take reasonable steps to verify the identity of anyone applying for credit in the consumer's name. The file itself remains accessible. | Restricts access to the credit report so that most new creditors and other third parties cannot obtain it at all until the consumer lifts the freeze. |
| Legal basis | Established by the federal Fair Credit Reporting Act, which requires the national credit reporting companies to place alerts on request and to pass a request made to one company along to the others. | Also governed by the federal Fair Credit Reporting Act, which provides a nationwide right to place, temporarily lift, and remove a security freeze; state laws may add requirements in some jurisdictions. |
| Duration | An initial fraud alert lasts one year and can be renewed. An extended fraud alert lasts seven years and requires an identity theft report. An active duty alert for service members lasts one year. | A freeze remains in place until the consumer lifts it temporarily or removes it permanently. Under federal law it does not lapse on its own. |
| How many companies to contact | Contacting one of the three national credit reporting companies is enough, because that company must notify the other two. | Must be requested separately from each of the three national credit reporting companies, since each maintains its own separate file. |
| Cost and documentation | Free to place. An initial alert requires identifying information such as name, address, and Social Security number; an extended alert additionally requires an identity theft report. | Free to place and to lift under federal law. It generally requires identifying information, and in some situations additional proof of identity or authority to act for someone else, such as a guardianship document. |
| Access and exceptions | The file stays open to anyone who legitimately requests it. Access is not blocked; it is conditioned on verification. | Access is blocked for most third parties, though exceptions permit existing creditors, debt collectors acting on an existing account, and certain government agencies. Consumers can still obtain their own report. |
| Practical effect on applications | Applications can still proceed, but may be delayed while a business completes identity verification steps. | Applications that depend on a credit pull, such as new cards, auto loans, and some rental, utility, or insurance applications, may be delayed or declined until the freeze is lifted. |
Frequently asked questions
Does a fraud alert require a police report?
An initial fraud alert does not. An extended fraud alert, which lasts longer, requires an identity theft report, which can be a report filed with a police department or an Identity Theft Report filed with the Federal Trade Commission.
Can someone have a fraud alert and a credit freeze at the same time?
Yes. The two are not mutually exclusive, and placing one does not remove the other. Because a freeze blocks most access to the file, the alert may have limited practical effect while the freeze is active, but it remains on the file.
Do both need to be requested from all three national credit reporting companies?
A fraud alert does not, because a request made to one company must be passed along to the other two. A credit freeze does, because each national credit reporting company maintains a separate file and must be contacted individually.
Can a creditor still see a credit file with a freeze in place?
Some parties retain access, including existing creditors, debt collectors acting on an existing account, and certain government agencies. Consumers can also access their own report. New lenders without an existing relationship generally cannot obtain the file while the freeze is active.
Does either option change the information in a credit report?
Neither one alters the underlying account information. A fraud alert and a freeze are access and verification controls, not corrections to the file. Disputes about inaccurate or incomplete information are handled separately under the Fair Credit Reporting Act.