![]() Active Duty Military Alert For those in the military who want to protect their credit while deployed, this fraud alert lasts for one year.Extended Fraud Alert If you are a victim of identity theft, an extended fraud alert protects your credit for seven years.Initial Fraud Alert If you’re not already an identity theft victim, this fraud alert protects your credit from unverified access for at least 90 days.You still need to monitor all bank, credit card and insurance statements for fraudulent transactions. Like credit freezes, fraud alerts may stop someone from opening new credit accounts in your name, but they don’t prevent the raiding of your existing accounts. What is a 'good" credit score, and how do you make it even better?Ī fraud alert allows mortgage lenders to get a copy of your credit report as long as they verify your identity. ![]() It’s free, and it may prevent fraud in the first place, not just alert you after it takes place. You can request that a fraud alert be placed on your credit report with all three bureaus. However, the ongoing cost of such measures may be a bit much over time, and it just provides information, not prevention. You can sign up for credit monitoring, which alerts you if someone executes a suspicious transaction using your Social Security number.Ĭredit monitoring lets you see if someone uses your existing credit accounts, and alerts you so you can have the transactions reversed. Alternatives to credit freezingĬredit freezing is not the only solution to compromised credit files. This may leave you vulnerable to fraud during that time. Or, you can request the freeze to be lifted once during your mortgage process, and then replaced once your loan closes. That’s something to keep in mind when locking your interest rate or deciding how long an escrow you want. If you have to freeze and unfreeze your report several times while your loan processes, it may add a week or more to your processing time. The cost to lift a freeze varies by state.Įquifax victim? here's how to protect yourself ![]() A credit reporting company must lift a freeze no later than three business days after getting your request. To do this, you use the PIN number that each credit bureau gives you.įor mortgage applications, which require credit scores from multiple bureaus (Equifax, TransUnion and Experian), you’ll need to do this two or three times. You must unfreeze your credit personally to allow access to your report. “Unfreezing” credit for loan applications When you apply for your home loan, underwriters will pull your credit.Īnd right before closing, most lenders will do a final credit check as part of their quality control. If you want Loan Estimates from mortgage lenders, which tell you what rate and terms a lender is willing to offer you, they need to check your credit. However, this bullet-proofing can make it difficult if you are seeking credit. (However, Equifax is providing free credit monitoring in the wake of its breach for one year to potential victims.) Freezing can make mortgage application a challenge It’s also often cheaper than credit monitoring services, which require ongoing payments. If creditors don’t have access to your credit information, they are unlikely to grant you (or anyone pretending to be you) credit. The main advantage of a credit freeze is that it’s pretty much bullet-proof. It’s important to understand that freezing your credit does NOT prevent identity theft - if someone has information about your existing credit cards or bank accounts, it won’t prevent them from accessing them. However, Equifax claims that enrolling in the free credit monitoring service they are providing victims of its data breach allows you to freeze your credit for free if you want. It typically costs about $30 to set up a freeze. This keeps identity thieves from using your information to open up new accounts in your name. ![]() Once you implement a credit freeze, lenders and other companies cannot see it. If you have a problem managing debt, credit counselors may advise you to actually put your credit cards under water and then in the freezer, encasing them in ice to prevent impulse buys.įreezing credit, also known as placing a security freeze, locks up your credit report. That can prevent people from opening up accounts in your name, but what if you’re shopping for a mortgage? Verify your new rate What exactly is “freezing” your credit? If your personal data is no longer secure because of the recent Equifax hack, many personal finance experts recommend that you protect yourself with credit monitoring and even freezing your credit. Septem4 min read Equifax leak: experts recommend freezing your credit
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