Individual Fraud Alerts
What is a Fraud Alert?
A fraud alert is a type of "extra caution" alert that the major credit bureaus attach to your credit report. When you, or someone else, try to open up a credit account by getting a new credit card, car loan, cell phone, etc., the lender should contact you by phone to verify that you really want to open a new account. If you aren't reachable by phone, the credit account shouldn't be opened.
However, sometimes creditors overlook fraud alerts, and forget to contact you. They do not have a legal obligation to do so since this is a voluntary system established by the national credit bureaus. So, the system is not perfect, but it works better than if you do not have an alert in place.
What is the Benefit of Applying a Fraud Alert?
The benefit of applying a fraud alert is that you are supposed to be notified each time someone applies for credit in your name. This will help minimize your risk of having someone open new credit in your name, without your permission or knowledge.
What are the Drawbacks of Applying a Fraud Alert?
The only drawback is that if you apply for new credit, the creditor will see the alert and call the number you have provided to verify that you do indeed want the new credit. For this reason, it is best to provide your cell phone number when you apply a fraud alert, so that the creditor can make contact with you "on the spot", such as while you are out shopping and want to take advantage of the store's credit card savings or apply for a new car loan. If you give your home number, the creditor might not be able to reach you as fast to verify that you do want the credit to proceed.
How Do I Set Up a Fraud Alert?
To set up a fraud alert on your credit rating, you need to contact the fraud alert departments of the national credit bureaus and ask them to put a flag on your credit file for fraud. The national credit bureaus advise that if you contact one of them, they inform the others about your request for a fraud alert. However, there may be a backlog in doing so, so we encourage you to contact all three directly.
You can do this by telephone, mail or fax. The contact details are below.
If you call, you will probably talk to an automated voice response system, but it should only take a few minutes.
- TransUnion
Fraud Victim Assistance Department
Phone: 800-680-7289
Fax: 714-447-6034
P.O. Box 6790
Fullerton, CA 92634-6790
- Equifax
Consumer Fraud Division
Phone: 800-525-6285 or: 404-885-8000 Fax: 770-375-2821
P.O. Box 740241
Atlanta, GA 30374-0241
- Experian
Experian's National Consumer Assistance
Phone: 888-397-3742
P.O. Box 2104
Allen, TX 75013
What Happens When I Activate a Fraud Alert?
- Within 24 hours of processing, your alert should be become active at the national credit bureau. You should receive a confirmation in the mail a week or two after your call. If you don't receive this confirmation, we recommend that you call the credit bureau and place the alert again.
- As an added benefit to placing an alert, your name will be removed from all pre-approved credit and insurance offers for two years.
How Long Does a Credit Alert Remain Active?
A credit alert remains active for 90 days. At that time, you will need to place another fraud alert if you want to continue the protection.
Am I Allowed to Withdraw a Fraud Alert if I Change My Mind?
Yes. To protect you from the possibility that someone could try to lift your alert without authorization, the credit bureaus require individuals who want their alerts lifted to do so in writing. You should call the credit bureaus first to determine what information they will need to lift the alert.