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Credit freeze, like fraud alert can be one of the important devices to prevent the attack of identity theft. With the upsurge of identity theft, not only credit freeze fraud alerts are used as protectionism but also credit freeze is placed as a safeguard.

Many baffle themselves with question that what is a credit freeze and what are the benefits associated.  Moreover, at times the conception of fraud alert protection is also mixed up with credit freeze. Credit freeze and fraud alert are totally two different protection tools for identity theft, and should not be confused.

Credit freeze

A credit freeze also known as credit lock, where you require paying for totally locking your credit. This states that no lender will have access to your individual credit report. This has been available by the bureaus in all 50 states. In case, you want to state an application for credit, you need to ask the credit agency to terminate the credit freeze. It is only after that, the lender will be able to gain access to the credit report. Afterwards the credit freeze can be reinstated.

The main three credit bureaus- Experian, TransUnion, and Equifax- charge a yearly fee of $10 for credit freeze.However, the draw back with credit freeze protection is that it may become expensive, since you to give a fee for implementation firstly, fee for lifting it when requires, and also an additional fee for reinstating it. You can get some relief from the charges, if you already have been a victim of identity theft.

Another drawback is that credit freeze is time-consuming. The agencies take at least three days before approving your request. At times, it also becomes difficult to open a bank account for yourself, as you need to undergo the process of lifting credit freeze. However, this indicates there can be no instant credit, or even when it is an emergency, you must wait for those three days.

Fraud Alert

On the other hand, fraud alert is the flag installed by credit bureaus on your individual credit report. With this service you instantly get notified if any credit card or bank loan is created using your personal information. Unless and until the action is verified, the transaction cannot take place. Unlike, credit freeze lenders do have access to your personal credit report, and they can check your credit report without your permission. But these fraud alerts gives you the red signal that there is a probable fraud.

Fraud alerts exist in two types. One is short-term fraud alert that will last for ninety days. Another is prolonged fraud alert offers protection for seven years.

Which one is better secured?

A credit freeze is much more secured comparatively to fraud alert, as entirely locks up your credit from getting any access. Nevertheless, there are many inconvenience related to credit freeze.

The best news is, if you are concerned about protection from identity theft than you can adopt both the services. All you need to do is contact the credit bureaus or enroll with one of our recommended Identity Theft protection services.

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