The US Federal Trade Commission publishes step-by-step consumer guidance on freezing your credit report and placing a fraud alert, two free measures the agency says make it harder for scammers to open new credit accounts in your name. Following the FTC's instructions, you can place a freeze with all three credit bureaus, choose among three types of fraud alert, and freeze a child's credit.
What it does
The FTC says that while a credit freeze is in place, nobody can open a new credit account in your name, including you. The agency says there is no cost to place or lift a freeze and that it doesn't affect your credit score.
Fraud alerts work differently, according to the FTC: they make lenders verify your identity before they grant new credit in your name, but unlike a freeze they don't prevent businesses from seeing your credit report. The agency says you can place a fraud alert even if you already have a credit freeze in place.
The FTC describes three types of alert — an initial fraud alert, an extended fraud alert and an active duty alert — and says which is best depends on your situation and needs.
Before you start
The FTC says anyone can freeze their credit report, for any reason, even if their identity hasn't been stolen, and that you don't have to wait for your Social Security number or other information to be exposed in a data breach.
For an initial fraud alert, the agency says the alert is for anyone who is or suspects they may be affected by identity theft. An extended fraud alert, the FTC says, is for people who have experienced identity theft and have completed an FTC identity theft report at IdentityTheft.gov or filed a police report. An active duty alert is for active duty servicemembers.
All of these are free, according to the FTC.
Steps
Step 1: To place a credit freeze, the FTC says to contact all three of the credit bureaus — Equifax, Experian, and TransUnion. The agency says a credit freeze lasts until you lift it.
Step 2: When you need lenders to access your credit — for example to apply for new credit or a job, rent an apartment, or buy insurance — the FTC says to contact the bureau or bureaus to request the freeze be lifted. The agency says it is a good idea to identify which bureau a lender will use to check your credit, lift the freeze at just that one bureau, and then put the freeze back in place once the need for a credit check passes.
Step 3: To place an initial fraud alert, the FTC says to contact one of the three credit bureaus — Equifax, Experian, and TransUnion. You don't have to contact all three, because the bureau you contact must tell the other two to place the alert on your credit report. The FTC says an initial fraud alert lasts one year and you can renew it, and that placing one entitles you to a free copy of your credit report from each of the three credit bureaus.
Step 4: To place an extended fraud alert, the FTC says to contact one of the three credit bureaus; again, that bureau must tell the other two. The agency says an extended fraud alert lasts seven years, requires the bureaus to take you off their marketing lists for unsolicited credit and insurance offers for five years unless you ask them not to, and that renewing it means resubmitting your FTC identity theft report or police report.
Step 5: Active duty servicemembers who want an active duty alert should contact one of the three credit bureaus, the FTC says. The alert lasts one year, with the choice to renew it for the length of your deployment, and takes you off marketing lists for unsolicited credit and insurance offers for two years unless you ask otherwise. The FTC adds that active duty servicemembers and National Guard members can get free electronic credit monitoring by contacting each of the three credit bureaus.
Step 6: For a child under 16, the FTC says to request a free credit freeze, which stays in place until you tell the credit bureaus to remove it. The agency says the process for a minor is different than for an adult and that the credit bureaus give specific instructions at the Experian, Equifax and TransUnion sites. The FTC's page does not spell out those bureau-specific steps itself.
What the agency says
The FTC says credit freezes and fraud alerts can help protect you from identity theft by making it harder for scammers to open new credit accounts in your name, and can also help stop someone who already stole your identity from misusing it again.
The agency also recommends regularly checking what's in your credit report, saying accounts in your name that you don't recognize could be a sign of identity theft.
What to do
- Contact Equifax, Experian and TransUnion to place a free credit freeze; the FTC says anyone can do this at any time.
- When you need a credit check, identify which bureau the lender will use, lift the freeze at that bureau only, then put it back once the check is done.
- To place an initial fraud alert, contact just one of the three bureaus; it must notify the other two. It lasts one year and can be renewed.
- If you've experienced identity theft, complete an FTC identity theft report at IdentityTheft.gov or file a police report to qualify for a seven-year extended fraud alert.
- Active duty servicemembers can request an active duty alert from one bureau, and servicemembers and National Guard members can contact all three bureaus for free electronic credit monitoring.
- For a child under 16, follow the minor-specific instructions on the Experian, Equifax and TransUnion sites.
- Check your credit reports regularly for accounts you don't recognize.
Key facts and where they come from
- A credit freeze blocks new credit accounts in your name, is free and does not affect your credit score, the FTC says.
There’s no cost to place or lift a credit freeze, and it doesn’t affect your credit score.
- To freeze your credit you must contact all three bureaus.
How to place one: Contact all three of the credit bureaus — Equifax, Experian, and TransUnion.
- A freeze lasts until you lift it.
How long it lasts: A credit freeze lasts until you lift it.
- For a fraud alert, contacting one bureau is enough.
You don’t have to contact all three. The credit bureau you contact must tell the other two to place an initial fraud alert on your credit report.
- An initial fraud alert lasts one year and can be renewed.
An initial fraud alert lasts one year, but you can renew it.
- An extended fraud alert lasts seven years and requires an FTC identity theft report or police report.
People who have experienced identity theft and have completed an FTC identity theft report at IdentityTheft.gov or filed a police report.
- An active duty alert lasts one year and removes you from marketing lists for two years.
An active duty fraud alert also requires the credit bureaus to take you off their marketing lists for unsolicited credit and insurance offers for two years, unless you ask them not to.
- Children under 16 can have a free credit freeze, using a different process.
If your child is under 16, request a free credit freeze to make it harder for someone to open new accounts in your child's name.