Every year, millions of people in the United States alone become victims of identity theft. Your credit report could be greatly affected if you are one of these victims. Negative credit information could be reported to the credit reporting agencies and be placed on your credit history. If the thief gains access to your credit report, they would then also have access to your personal information. This makes it extremely easy for them to steal your identity. If you are worried about becoming a victim of identity theft, there are security measures that you can take to make it harder for a thief to access your credit report.
Placing Fraud Alerts
Even if you have not actually been a victim of identity theft, you still have the option to place a fraud alert with the credit reporting agencies. There are two types of fraud alerts that you could place on your credit report. The availability of each option depends on whether you have or have not been a victim of identity theft.
- Initial Fraud Alerts
- – Initial fraud alerts are usually used by someone who thinks that they might become a victim of identity theft.
- – If you’ve lost a card or document with your personal information on it, it might be a good idea to place an initial fraud alert.
- – If you request to place an initial fraud alert on your credit report, you will need to verify your identity.
- – You will be allowed to receive one free copy of your credit report from each credit reporting agency to check for mistakes in your credit history.
- – Initial fraud alerts are good for 90 days.
- Extended Fraud Alerts
- – Extended fraud alerts can only be placed on your credit report if you have been a victim of identity theft.
- – You will be allowed two free copies of your credit report so you can — keep an eye on your credit activity. This will help you know if the thief is still using your identity.
- –Extended fraud alerts are good for seven years.
Placing a Credit Freeze
Credit freezes will not bar someone from using your personal information if they already have it, but they will help decrease the chances of anyone accessing any personal information and creating new credit accounts in your name.
- – Credit freezes will prevent any potential creditors from accessing your credit report. They will also prevent any new credit accounts from being opened.
- – Companies will still be able to offer pre-screened credit offers to you, since they do not actually access your credit report to approve you.
- – If you are applying for credit from a new company, you will need to temporarily lift the credit freeze from your credit report so that the new company can access it.
- – There is a fee for placing and removing credit freezes from your credit report. It is usually $10 for each time it is done. This will also apply for when you temporarily lift your credit report when applying to a new creditor.
- – Companies that already have access to your credit report will continue having access to it.