Fraud Alert or Credit Freeze: What’s the Difference?

by Ariana Almodovar ● Posted on October 3rd, 2019

A fraud alert and a credit freeze can help your customers protect their data from identity theft. According to TransUnion, the difference between the two tools is that a fraud alert will inform creditors to take precautions when verifying a credit application by calling the person directly, while a credit freeze will not allow creditors to view a credit report.

Unsure of which tool to recommend? While every case is different, here are a few things to consider.

The fraud alerts last one year. Once placed, the bureau automatically notifies the other two that a fraud alert is in effect.
A credit freeze provides more control over who has access to a customer’s information and will remain on a credit report until the client chooses to remove it.
If the goal is to have increased control over personal information, a credit freeze might be the best option. If not looking to have complete block access to a credit report, but still want an extra layer of security, a fraud alert is an excellent option. Check out here water damage repair in Orange County.
A customer can choose both a fraud alert and a credit freeze for added protection.

In conclusion

When it comes to safeguarding personal data from identity theft, understanding the differences between fraud alerts and credit freezes is essential. A fraud alert notifies creditors to exercise caution when verifying credit applications for one year, while a credit freeze provides extended control by blocking creditor access until the client chooses to remove it. The choice between them depends on individual needs; a credit freeze offers enduring protection, while a fraud alert adds an extra layer of security without blocking access to credit reports. Customers can even opt for both tools simultaneously for comprehensive security. Ultimately, the decision should align with one’s unique circumstances and risk tolerance, ensuring a well-informed choice for robust data protection.

For more resources and tips check that site here for your credit repair business, visit https://www.scoreceo.com/blog. Don’t forget to subscribe to our podcast, ScoreWay: The Only Way, available on Anchor, Apple Podcasts and Spotify.