A fraud alert is a message placed on your credit reports alerting any lenders or parties that access your credit file the beware that the application they’re processing might be fraudulent. You can place a fraud alert on your credit report, if you suspect that you are a victim of identification (ID) theft. ID theft is when someone uses your name, Social Security number, date or birth and/or other information without your permission to open a credit card account, loan, or bank account. This could be the result of lost or stolen credit cards or wallet or through the internet, etc. This alert is to letpanies accessing your credit report they need to take certain precautions.
If you are a victim if ID theft, you should immediately contact your creditors and also contact one of the three major consumer credit reporting agencies – Equifax, Experian or TransUnion. Place a fraud alert on one of your credit files, and that credit bureau will contact the other two to have the alert placed on there as well. The contact can be by phone, mail or through the internet. Placing the alert is free. You will receive a confirmation when the alert has been added to your credit report, which is usually within 24 hours. To cancel an alert you will need to contact the credit reporting agencies in writing.
There are three types of fraud alerts: Initial, extended and active duty.
You should be aware of the following regarding fraud alerts:
- It is more difficult to get credit when you place a fraud alert.
- It can delay your ability to get credit.
- It does not prohibit creditors from extending credit, it just gives them procedures to follow to verify your identification.
- It does not prohibitpanies from viewing your credit report or granting you credit.
- The lenders orpanies viewing credit reports with a fraud alert need to verify that you have authorized this activity on the account.
- The alert depends upon the credit reporting agencies placing the fraud alert on the file and the lender orpany reviewing the credit file to follow procedures.
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Tags: Alert, Fraud Alert
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