Many people are looking out for ways to safeguard their identity. One of the ways to do that is securing the credit score. Many people get trapped and become victims to identify threats. That is why they should make sure that their credit is safe. They can place a freeze or an alert to make sure that their credit card is safe. A freeze ensures to cut off the credit reports’ access unless the freeze is lifted by using a PIN or a password. The alert required the creditors to verify their identity. Freeze and alerts are for free, but freeze offers better protection. Learn more about fraud alert vs credit freeze.
What is better between a credit freeze and a fraud alert?
Fraud alert vs. credit freeze:
- Fraud alert- The companies verify the identity of the person before granting a new credit card in their name. This means that they are ensuring that the person wants to open an account. The fraud alert is free and can last for one year. A fraud alert is recommended to protect and lock the credit card. It lets the person know if someone is trying to use their personal information to open a new account.
- Credit freeze- A credit freeze limits access to the credited report so that no one, including the cardholder who has frozen the account, cannot open a new account till the freezing has been lifted. The person can only lift or place the freeze with a password or a PIN allocated to them. It is free and lasts until the freeze is lifted. It is a good idea for people who are willing to deal with refreezing and thawing to give a creditor access to the credit reports.
What is the right choice?
A person can add the fraud alert on the top of the freeze. It is like keeping a safe inside a safe. No freeze or alert can stop or spot the fraudulent charges on the existing account or credit card. It’s upon the person to check if there are any charges that they did not authorize by reviewing the statements or while setting up an alert when the charge is made. It depends on personal circumstances. With the fraud alert, the person can keep access to the credit, whereas a freeze is best for the people who are not planning to take out the new credit. It mostly includes children and older adults.