An alert from the credit bureau about fraud is a way to prevent identity theft. An alert will prevent you from applying for new credit accounts until you have been verified by the company that you are who you claim to be. This verification is usually done by phone and may require you to state the date that the fraud alert was placed. However, there are certain benefits to alerts.
Alert for active duty
An active duty credit bureau fraud alert is a free service that service members can get to protect themselves from fraud and identity theft. It stops your name being listed on pre-approved cards for a year, and can be renewed for as long you serve. This service is available from TransUnion, Equifax, and Experian. You can place a fraud alert by phone or mail. Request an extended alert to extend the alert. This will keep your name off of pre-screened offers for up to two years.
After you request an alert, notify the two national credit reporting agencies. You must provide proof of identity before an active duty alert is placed, which might include your name, address, and Social Security number. Your contact information must be updated before the alert expires. You will not be removed from pre-screen marketing lists for up to two years if you fail to do so.
Alert for initial fraud
An initial fraud alert is a warning on your credit report that will prevent identity thieves from opening new accounts in your name. This alert stays on your credit file for 90 days, and some extend to a full year. This alert is available if you suspect identity thieves, have lost your wallet or are the victim to a phishing scheme. The alert will give you a free copy each of the major consumer reporting agencies' credit reports.
This alert is used to inform lenders that your identity has been verified before they approve you for credit. These alerts can slow down the loan process. Credit monitoring may be a better option.
Dispute a fraud alert
It is your right and obligation to dispute any alert from the credit bureau. You can do this by writing to the agency that sent the alert. The agency will then erase the incorrect information and mail a notice for all creditor businesses that received the notice. Make sure to include your name and telephone number with the dispute.
A fraud alert notifies creditors that someone is trying your identity to purchase goods. This does not preclude creditors from obtaining your credit file, or issuing credit cards. It is important that you understand that a fraud alert can only be temporary.
Removing a fraud alert
It is easy to remove a credit bureau fraud warning. The process can be completed online, by phone or by mail. After completing the process, the alert should be removed within a few days. If you do NOT wish to remove the alert you can opt to let it expire. A fraud alert will automatically expire within one year of the initial alert or seven years for extended alerts.
You can contact the credit bureaus to request a removal of your alert sooner. To remove a fraud alert sooner, most agencies will ask you to prove your identity.