To protect yourself against identity theft, a credit bureau fraud alarm is a tool. The alert will prevent new credit account applications until the company has verified your identity. This verification usually takes place by phone. It may also require that you state the date when the fraud alert was placed. However, there are certain benefits to alerts.
Active duty alert
The service member can request a free credit bureau fraud warning to help them protect themselves from identity theft or fraud. 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 send a fraud alert via mail or phone. For two years, an extended alert can be requested to prolong the alert. It will stop the name appearing on pre-screened offer lists.
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. If you don’t update your contact information before the alert expires, your name and email address will be kept on pre-screening marketing lists for at least two years.
Initial fraud alert
An initial fraud alert is a warning that appears on your credit file. It will stop identity thieves from opening additional accounts under your name. This alert is stored on your credit file for 90 calendar days. Some extend the validity of the alert 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 signifies that lenders are watching you closely and may need to verify your identity before granting you credit. Oftentimes, these alerts can slow down the loan processing process. Credit monitoring is an alternative.
Dispute a fraud alert
It is your right and obligation to dispute any alert from the credit bureau. This can be done by writing to the agency sending the alert. The agency will then erase the incorrect information and mail a notice for all creditor businesses that received the notice. In the dispute, include your name as well as your telephone number.
A fraud alarm is a notification to creditors of someone trying to use your name to make purchases. However, it does not prevent the creditors from obtaining your credit file or issuing new lines of credit. A fraud alert is only temporary.
Removing a Fraud Alert
It's very easy to remove a fraud alert from your credit bureau. The process can either be done online, over the telephone, or by post. After completing the process, the alert should be removed within a few days. If you do not wish to remove the alert, you may opt to let it expire. A fraud alert will automatically expire one year after an initial alert, and seven years after an extended alert.
If you wish to remove your alert earlier, you should contact the credit bureaus directly. In order to remove fraud alerts earlier, many agencies will require proof of identity.