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Fraud Alert vs. Credit Freeze - Which Should You Use?

Published: July 31, 2025

Fraud Alert vs. Credit Freeze - Which Should You Use?

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Fraud Alert vs. Credit Freeze: Know the Difference

When it comes to protecting your identity, it’s important to know your options. Two powerful tools available to help safeguard your credit are fraud alerts and credit freezes. While both aim to reduce your risk of identity theft, they work in different ways—and the best choice depends on your situation.

Understanding the Basics

Both fraud alerts and credit freezes are designed to help prevent unauthorized access to your credit file. They can make it harder for someone to open a new account in your name by alerting creditors or blocking access altogether.

  • Fraud Alert: Signals to potential lenders that they should take extra steps to verify your identity before extending credit.
  • Credit Freeze: Blocks access to your credit report entirely, preventing most lenders from viewing it or approving new credit.

These tools are available to anyone—not just confirmed victims of identity theft—and they’re free to set up through the three major credit bureaus: Equifax, Experian, and TransUnion.

What Is a Fraud Alert?

A fraud alert acts like a red flag on your credit report. While your credit file remains accessible to lenders, the alert tells them to verify your identity before processing a credit application. This added layer of verification can help prevent someone from opening a credit card or loan in your name.

There are three types of fraud alerts:

  • Standard Fraud Alert: Lasts one year and can be renewed. You’ll also receive a free credit report from each bureau.
  • Extended Fraud Alert: Lasts seven years and is available to verified identity theft victims. It requires a police report or FTC filing and limits prescreened credit offers for five years.
  • Active Duty Alert: Available to military members on active duty. It lasts one year (renewable) and helps reduce the risk of credit fraud during deployment.

Placing a fraud alert is simple—contact one credit bureau, and they’ll notify the others automatically.

What Is a Credit Freeze?

A credit freeze offers stronger protection by locking your credit file. Most creditors won’t issue new credit if they can’t see your report, which means scammers won’t be able to open accounts in your name.

You can freeze your credit at any time, and it doesn’t require proof of fraud. Unlike a fraud alert, a credit freeze doesn’t expire—you’ll need to manually lift (“thaw”) it if you plan to apply for new credit.

A credit freeze:

  • Blocks access to your credit report from new lenders
  • Remains in place until you lift it
  • Can be turned off temporarily or permanently as needed
  • Doesn’t affect your current credit accounts, score, or monitoring services

To place or lift a credit freeze, you must contact each of the three credit bureaus individually.

Should You Use Both?

Fraud alerts and credit freezes can be used together, especially if you want both preventative and active protections. A credit freeze limits access to your credit file, while a fraud alert encourages lenders to take additional identity verification steps when your freeze is lifted.

However, neither tool protects your existing accounts from being compromised. That’s why it’s important to also:

  • Enable transaction alerts on your bank and credit accounts
  • Monitor statements regularly
  • Be on guard for phishing and other scams that target your personal information

When to Consider a Fraud Alert

  • You lost your wallet or personal documents
  • You suspect your information may have been exposed
  • You want added protection without fully freezing your credit

When to Consider a Credit Freeze

  • You want the highest level of protection from new account fraud
  • You’re not planning to apply for credit anytime soon
  • You’re a parent looking to protect your child’s identity (credit freezes are available for minors)

How to Get Started

To place a fraud alert, contact any one of the following:

To place a credit freeze, you’ll need to contact all three individually:

Final Thoughts

Protecting your credit doesn’t have to wait until after fraud strikes. Whether you choose a fraud alert, a credit freeze, or both, these free tools can help you stay one step ahead of identity thieves. And remember—no matter which option you choose, ongoing vigilance is key.

Enable transaction alerts, check your accounts regularly, and don’t share sensitive information unless you’re sure who you’re dealing with. Prevention is your first line of defense.

Security Spotlight Tip:
Monitor your credit score regularly to spot changes that could indicate fraud. USSFCU members can access their FICO® Score for free anytime in myUSSFCU Online and Mobile Banking—along with helpful credit tools like the FICO® Credit Score Simulator.

Upcoming Webinar:
Understanding Credit: Reports, Scores & How to Improve Them
Wednesday, August 6 | 6:00 PM ET
Learn what’s in your credit report, how your score is calculated, and the steps you can take to boost it.

Register Now

Article content is provided for information purposes only. 

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