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If your personal information was exposed in a data breach — or if you want to protect yourself proactively — a credit freeze and a fraud alert are the two tools available. They do different things, cost nothing, and serve different situations. Here is exactly how each works and which one you need.
Credit Freeze: Maximum Protection
A credit freeze (also called a security freeze) prevents credit bureaus from sharing your credit report with new lenders. Since lenders need to pull your credit to approve new accounts, a freeze effectively prevents anyone from opening new credit in your name — including you. It stops identity theft at the application stage.
What it blocks: New credit card applications, mortgage applications, auto loan applications, apartment rental hard pulls, and any other hard inquiry requiring a new credit pull.
What it does NOT block: Soft inquiries, your existing accounts, employers checking your credit (different process), debt collectors managing existing accounts.
Cost: Free at all three bureaus since 2018.
How to apply: Place a freeze separately at each of the three bureaus. You must contact all three:
- Equifax: equifax.com/personal/credit-report-services or 1-800-685-1111
- Experian: experian.com/freeze or 1-888-397-3742
- TransUnion: transunion.com/credit-freeze or 1-888-909-8872
When you need to apply for credit yourself: Temporarily lift the freeze at the bureau the lender uses. You can lift it for a specific date range or for a specific lender. Takes minutes online. Refreeze after.
Fraud Alert: Lighter Protection, Less Friction
A fraud alert adds a notice to your credit file asking lenders to take extra steps to verify your identity before approving new credit. It does not block access to your report — lenders can still pull it and can still approve credit, but they are supposed to contact you first.
Types of fraud alerts:
- Initial fraud alert: Lasts 1 year. Place with one bureau and they notify the other two automatically.
- Extended fraud alert: Lasts 7 years. For victims of confirmed identity theft. Requires a police report or FTC identity theft report.
- Active duty fraud alert: For military members on deployment. Lasts 1 year.
Cost: Free at all three bureaus.
Fraud alerts are weaker protection than freezes because they only request extra verification — they do not technically prevent approvals. A freeze is better protection.
Which One to Use
| Situation | Recommendation |
|---|---|
| Proactive protection (no known breach) | Credit freeze — maximum protection, no cost |
| Known data breach involving your SSN | Credit freeze immediately + fraud alert |
| Planning to apply for credit soon | Fraud alert — less friction, still some protection |
| Confirmed identity theft | Extended fraud alert (7 years) + freeze |
| Elderly parent protection | Credit freeze — they rarely apply for new credit |
Additional Step: ChexSystems and Innovis
Equifax, Experian, and TransUnion are the three major bureaus. For complete protection, also freeze your reports at two smaller agencies: ChexSystems (used by banks when you apply for a checking account: chexsystems.com) and Innovis (a fourth credit bureau used by some lenders: innovis.com). Both offer free freezes.
Monitoring After a Freeze
A credit freeze does not monitor your existing accounts for fraud. Pair a freeze with free credit monitoring through Credit Karma or Experian to catch unauthorized activity on existing accounts. A freeze prevents new fraud; monitoring catches existing account fraud.
Sources: Economic Growth, Regulatory Relief, and Consumer Protection Act (credit freeze law); FTC fraud alert guidance; Equifax, Experian, TransUnion freeze procedures. This article is for informational purposes only.
