How Long an Extended Fraud Alert Remains on Your Credit File
Navigate identity theft recovery. Understand the long-term presence and practical implications of an extended fraud alert on your credit.
Fraud alerts serve as a protective measure for consumers against identity theft and financial fraud, acting as a warning on credit files. They safeguard personal financial information from unauthorized access and misuse. Implementing a fraud alert signals to potential creditors that extra precautions should be taken before extending credit.
Understanding Extended Fraud Alerts
An extended fraud alert offers heightened protection compared to an initial fraud alert, which typically lasts one year. This alert is designed for individuals who have been victims of identity theft. Its primary purpose is to notify businesses and lenders that a consumer’s identity may have been compromised, prompting greater caution.
Placing an extended fraud alert requires official documentation proving identity theft. This typically involves a valid identity theft report, such as one filed with the Federal Trade Commission (FTC) or a police report. Without this documentation, consumers cannot activate an extended fraud alert on their credit files.
Duration and Renewal of Extended Fraud Alerts
An extended fraud alert remains on a consumer’s credit file for seven years from the date it is placed. This duration is automatically applied once activated by one of the three major credit bureaus. Unlike initial fraud alerts, which typically expire after one year and can be renewed, extended fraud alerts do not require active renewal.
The credit bureaus manage this seven-year timeline; the alert automatically expires when this period concludes. After seven years, the alert is automatically lifted from the credit report, and heightened verification requirements cease. During the alert’s active period, consumers receive two free credit reports from each of the three nationwide credit bureaus annually. An extended fraud alert also removes the consumer’s name from pre-screened credit card and insurance offers for five years.
Placing an Extended Fraud Alert Request
Placing an extended fraud alert requires gathering essential personal identifying information. This includes name, addresses, Social Security number, date of birth, and a contact phone number. A valid identity theft report, such as a Federal Trade Commission report or a police report, is required to prove victim status.
Consumers can contact any one of the three major credit bureaus: Equifax, Experian, or TransUnion. While initial fraud alerts can be placed online or by phone, an extended fraud alert typically requires submitting the request by mail. The credit bureau receiving the request notifies the other two nationwide credit bureaus, ensuring the alert is placed on all three credit files.
Impact on Credit Access
An active extended fraud alert impacts how businesses and lenders interact with a consumer’s credit report. When a business accesses the credit report for an application, the alert signals the consumer may be an identity theft victim. This prompts the business to take “reasonable steps” to verify the consumer’s identity before extending new credit or opening new accounts.
These reasonable steps typically involve contacting the consumer directly, often by phone, at a number provided during alert placement. This verification process provides a vital layer of security, though it can occasionally lead to slight delays in credit applications or service activations. It helps prevent unauthorized individuals from obtaining credit in the consumer’s name.