| The increase in credit card fraud resulted in newer and | | | | accessing reports, credit freeze can help individuals |
| better methods cardholders may use to protect | | | | prevent credit card fraud easily. |
| themselves. Two of these methods are fraud alerts | | | | More people prefer credit freeze over fraud alters |
| and credit freeze. | | | | because they think the former is more effective and |
| Fraud Alert | | | | reliable in avoiding any form of credit card scam. |
| This method is used often to protect credit reports. | | | | However, do know that once even cardholders |
| With a fraud alert, a creditor will notify any cardholder | | | | themselves will not be able to access their credit |
| whenever new accounts are opened under their | | | | reports unless they "unfreeze" it. |
| names. This enables cardholders to give authorization | | | | The only way to unfreeze your credit report is to send |
| to the new account, lessen identity theft and determine | | | | a request to undo the freezing. So if you are asking |
| if they are being victimized for a credit card scam. | | | | for a new loan or you are applying for a credit card, |
| Fraud alters can be applied to your credit report by | | | | you need to first unfreeze your report first because |
| simply calling the credit bureau and request for your | | | | as long as there is no request of it, there is no way for |
| credit report to be put on fraud alert. This will give you | | | | it to be accessed by anyone. Freezing a credit report |
| 90 days of protection and you may choose to re-new | | | | will take effect in minutes or up to three days though |
| the alert after this period. On the other hand, extended | | | | there are instances where it took roughly a week |
| fraud alert are given to people who have been a | | | | before the reports are locked down. |
| victim of credit card fraud in the past. Extended fraud | | | | Additionally, you need to enclose at least two copies |
| alerts normally last for seven years. | | | | of your proof of identification along with the letter |
| Credit Freeze | | | | requesting the report to stop the report freeze. There |
| Credit Freeze, also known as credit report lockdown, | | | | is also a fee you need to pay each time you call for a |
| gives cardholders total control over their respective | | | | lockdown on report. There are also charges you need |
| credit reports. The main idea is to prevent other people | | | | to pay every time you request to undo the freeze. |
| from checking or getting a copy of credit reports. | | | | The fee will depend on the location of the cardholder. |
| Since lenders, insurers, landlords, marketing companies | | | | The fees are small price to pay to prevent credit card |
| and prospective employers are prevented from | | | | fraud. |