How Long Does a Fraud Alert Stay on Your Credit Report?

A fraud alert is a protective measure consumers can place on their credit reports to guard against identity theft. Its main purpose is to notify businesses to take extra steps to verify identity before opening new credit accounts or making changes to existing ones in a consumer’s name. This adds a layer of security, prompting creditors to be cautious when processing applications.

Types of Fraud Alerts and Their Duration

There are three primary types of fraud alerts, each designed for different situations and durations. An initial fraud alert is for anyone who suspects they may be a victim of fraud or identity theft. This alert remains on a credit report for one year and can be renewed. When active, businesses are encouraged to contact the consumer directly to confirm identity before extending new credit.

An extended fraud alert offers long-term protection, lasting seven years. This alert is for individuals who have been victims of identity theft and have filed an official report. It prompts businesses to verify identity, often requiring direct contact with the consumer. Additionally, an extended alert removes the consumer’s name from prescreened credit and insurance offer lists for five years.

The active duty military fraud alert is available to service members. This alert lasts one year and can be renewed for the duration of a deployment. It helps protect military personnel by requiring businesses to verify identity before issuing new credit. This alert also removes the service member’s name from prescreened credit and insurance offer lists for two years.

How to Place a Fraud Alert

Placing a fraud alert on a credit report involves providing specific personal details to a nationwide credit bureau. Consumers typically provide their full name, current and previous addresses, Social Security number, and date of birth. This information assists the bureaus in accurately identifying the consumer’s credit file. Providing a government-issued identification card and proof of address may also be required for identity verification.

The process begins by contacting one of the three major credit bureaus: Equifax, Experian, or TransUnion. Contacting just one bureau is generally sufficient for an initial fraud alert, as that bureau is required to notify the other two. Consumers can place an alert online, by phone, or by mail. Online requests often take effect immediately, while phone or mail requests may take a few days to process.

What Happens with a Fraud Alert and How to Remove It

When a fraud alert is active on a credit report, it signals to potential creditors that they should take additional steps to confirm the consumer’s identity before opening new accounts. This often involves contacting the consumer directly to verify that they initiated the credit application. While this adds a layer of security, it can also slightly delay the process of applying for new credit.

Fraud alerts typically expire automatically after their designated duration. Consumers also have the option to proactively remove an alert before its expiration. To do this, it is necessary to contact each credit bureau individually, as they do not automatically remove alerts from all three files. Consumers can request removal online, by phone, or through mail, often requiring identity verification.

Fraud Alert Versus Credit Freeze

While both fraud alerts and credit freezes are valuable tools for protecting against identity theft, they function differently. A fraud alert acts as a warning, prompting lenders to take extra verification steps before extending credit. It does not block access to a credit report but rather adds a cautionary note. This means a credit report can still be viewed, but entities are advised to confirm identity.

In contrast, a credit freeze, also known as a security freeze, completely restricts access to a credit report. New credit accounts cannot be opened in the consumer’s name without the freeze being temporarily lifted. Unlike fraud alerts, a credit freeze must be placed with each of the three major credit bureaus individually. Credit freezes remain in effect until lifted, offering indefinite protection.