Even if you check your statements every month you will not get any tips as to this happening but if you check your credit report you will see it.   This can be time consuming and expensive because most of the time it will cost you to get a copy of your credit report.  You can get free copies once a year but if you wait that long a lot of damage can already be done to your credit.

To help with this problem credit bureaus are offering an option that is called a credit or security freeze.  This credit or security freeze is just a hold that is put on your credit file at each of the credit reporting agencies which are three.  When this hold is placed on your credit file it helps to prevent potential creditors and credit card issuers from being able to see your credit history.  If they cannot see your credit history they will not issue any credit which means the identity theft will not be issued any credit in your name.

There is a fee for this service and it varies in each state.  On the average it can cost up to ten dollars for each credit reporting agency to open a credit or security freeze and from ten to twenty dollars for each one to remove it at a later date.  This adds up to sixty to ninety dollars for both actions.  If you are going to be applying for any type of credit in the near future it is not a worthwhile expense because you have to pay to have it put on, then pay to have it taken off before you apply for credit, and if you want to refreeze later that is more money.

This credit freeze does not protect you against any account fraud that already exists or someone stealing your social security number to gain employment but it does prevent potential employers from seeing your credit history.  You have to contact each agency separately to start the credit freeze.

You also have a right to get an identity theft report that is like a police report but does into more detail.  It should contain enough information that the businesses and credit reporting companies can verify that you are a victim.  It will also let them know just what information or accounts have been affected.

When you start to deal with the various credit reporting companies you have the right to put a ninety day initial fraud alert on your credit files.  You should do this if you think you are a victim or may become a victim of identity theft.  This alert just tells the users of your credit report that they must take steps to verify who is trying to get credit in your name.  To do this, all you have to do is contact just one of the credit reporting bureaus and they will contact the other two bureaus.

Make sure that you place a seven year extended fraud alert on your credit files if you know that you are a victim of identity theft.  When you place a ninety day initial fraud alert you will get one free copy of your credit report plus a summary of your rights from each bureau.

You also have the right to ask the credit reporting companies to block any fraudulent information from being on your credit report but before you can do this you must provide them with a valid identity theft report.  You also have the right to dispute any inaccurate or fraudulent information that you find on your credit report.  When you do the credit reporting company must investigate the dispute and fix your credit report when they find any fraudulent information.

In many states you have the right to use a credit freeze and restrict access to your credit report.  This will make it difficult for an identity theft to open any new accounts under your name.

You need to make sure your bank and credit card company have been contacted.  You should also contact at least one of the credit reporting agencies to report the fraud.  By law, they are required to notify the other two agencies.  They will also send you a free credit report.  Make sure that they put a fraud alert on your report.  You may also want to ask them if they can freeze any applications for credit until you tell them to remove it. In addition, make sure that you change your passwords and PIN number on all your accounts.
Identity theft is a federal crime so make sure that call your local police department to report the fraud.  Make sure that you ask to file a report listing all the accounts that were affected and all the illegitimate charges.  This report is very important in case creditor want to contest charges at a later date.

Once you get your credit report, make sure that you call all the banks and creditors that affected and have them close all the phony accounts immediately and have them make a notation that the account was fraudulent.  Also have them include in the notation that you were a victim of fraud.  Ask the banks to stop payments on any fraudulent checks plus notify the check verification companies.

If it is necessary, hire a lawyer to help you out.  Remember that you are a victim of identity theft and that you deserve the respect and support of the creditors.

It is important to understand the exact laws regarding credit freezes where you live; in some states only victims of identity theft can freeze their credit and in other states anyone can do it.  In most states where anyone can place a credit freeze on their credit report it costs about $10.  It is important to recognize that the credit freeze has to be placed on each of the credit score from the three major agencies, so this means the actual cost for a complete credit freeze is about $30.

Any company that you were already doing business with will still have access to your credit report even if you do have a credit freeze.  Some states also allow employers to access your credit report despite the credit freeze, so again it is very important to understand the nuances of the  law in the state where you live.  It is possible to lift the credit freeze temporarily if necessary to allow an organization to access the report, for example, for a loan application.

It is important to note that a credit freeze does not protect against all forms of identity theft.  If an identity thief decides you use your existing credit cards or bank accounts the credit freeze will not prevent it.  Wireless accounts and utility bills can be opened without a credit check in some instances and a credit freeze will not prevent an identity thief from committing this kind of fraud.  Credit freezes are useful in preventing a wide variety of forms of identity theft, so it is worth considering if you have experienced identity theft or live in a state where anyone can put a credit freeze on their credit report.

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 identity 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.