Fraud Alerts: What They Do and How to Place One

A fraud alert asks lenders to check that it is really you before new credit is opened. It is free, and one call covers all three bureaus.

What a fraud alert means for your credit file

A fraud alert is a note placed on your credit report. It tells anyone who checks your credit to slow down and confirm that the person applying for credit is really you. The FTC says a fraud alert tells any lender pulling your file to confirm you are the one applying before it approves new credit. An initial fraud alert tells businesses to check with you before opening a new credit account in your name.

The CFPB says if you think you may have been a victim of identity theft, you can file a fraud alert. You do not need to be certain. The FTC says anyone who is or suspects they may be affected by identity theft can place one.

The three types of fraud alert

Experian says there are three types of fraud alerts, and you have the right to request any one that applies to you.

Initial fraud alert. Experian says this is a 1-year alert placed on a consumer's credit file. It is for when you suspect you have been or may become a victim of identity theft. The CFPB says an initial fraud alert lasts up to one year unless you decide to remove it sooner.

Extended fraud alert. This one is for people who have already been hit. Equifax says an extended fraud alert can be placed if you are a victim of fraud or identity theft. It stays on your credit report for seven years unless you choose to remove it sooner. Equifax says an extended fraud alert can be placed if you are a victim of fraud or identity theft. Equifax says it also removes your name from pre-screened credit card and insurance offers for five years. Experian says an extended alert entitles you to two free file disclosures in a 12-month period after the alert is placed.

Active duty alert. Experian says this is for an active duty service member who wants to protect their credit file. Equifax says it is similar to an initial fraud alert and also lasts a year.

TransUnion lets you add a 1-year, 7-year, or Active Duty Military fraud alert. All of them are free.

How placing a fraud alert works, and why you only contact one bureau

There are three nationwide credit bureaus: Equifax, Experian and TransUnion. You might expect to contact all three. That step is not needed.

The FTC says to place an extended fraud alert you contact one of the three credit bureaus. The same one-contact rule applies to the other alert types. Equifax says once you place an alert with one of the bureaus, that bureau will send your request to the other two. Experian says a fraud alert placed at any credit bureau is shared with the others.

So pick the bureau you prefer. Experian says you can add an initial and active duty alert to your Experian credit file online in real time. TransUnion says a fraud alert will show up on your credit report the same day you place it.

The alert also carries a phone number you provide. Experian says your fraud alert phone number may be used by lenders to verify your identity. TransUnion says lenders will call you to verify a credit application made in your name, which can help you spot potential identity theft.

Experian says placing a fraud alert is completely free with no credit card required. It does not cost anything at any bureau.

What a fraud alert does not do

A fraud alert is a request, not a lock. The FTC says that unlike a credit freeze, a fraud alert does not prevent businesses from seeing your credit report. Lenders can still pull your file. The alert just asks them to take extra steps first. TransUnion says a fraud alert tells creditors to take extra steps to verify your identity before extending credit.

It also does not change your standing. Experian says adding a fraud alert does not hurt your credit history or credit scores. Experian also says an alert can neither help nor hurt your ability to qualify for a loan or credit card.

And it does not undo damage already done. The FTC says credit freezes and fraud alerts can also help stop someone who already stole your identity from misusing it again. They are a guard against the next attempt, not a fix for the last one.

How long alerts last, and how to renew one

Each alert type has its own clock. An initial fraud alert lasts one year. An active duty alert lasts a year too. An extended fraud alert lasts seven years.

Experian says every alert switches itself off when its end date arrives. The end date passes on its own, but keeping the protection going is on you.

The FTC says an initial fraud alert lasts one year, but you can renew it. Experian says you can renew initial, active-duty and extended fraud alerts up to three months before they expire. If your situation has not changed when the year runs out, renewing keeps the same protection running.

How to remove a fraud alert

You can take an alert off whenever you want. Experian says you can remove a fraud alert, but you must contact each credit bureau individually. The bureaus notify one another when an alert is activated, but they do not when one is removed. Placing takes one call. Removing takes three.

Experian says you can remove a fraud alert by mail or by uploading your request online. TransUnion says you can remove a fraud alert any time using its online Service Center with no effect to your credit score.

Where a fraud alert fits in your broader identity theft response

A fraud alert is one piece of a response, not the whole plan. The FTC says that even if you already have a credit freeze in place, you can also place a fraud alert. The two work at the same time. A freeze locks lenders out. An alert asks them to check first.

The FTC says you can get another free report if you have a fraud alert on your credit file. Pulling your own file to look for accounts you do not recognize is a natural next step. For a wider view of what to check and where to report, see credit report identity theft.

Ready to pick a bureau? The steps are here: experian fraud alert, equifax fraud alert, and a walkthrough to place fraud alert. Experian says you may have additional rights under state law, so it can pay to check your state's rules as well.