What an Initial Fraud Alert Is and How It Works

A one-year, free alert that makes lenders check with you first. Place it with one bureau and the other two follow.

What an initial fraud alert is and who it is for

An initial fraud alert is a flag attached to your credit file. It tells businesses to check with you before opening a new credit account in your name. The FTC describes it that way, and says it makes lenders verify your identity before they grant new credit.

Who is it for? The FTC says anyone who is or suspects they may be affected by identity theft can place one. You do not need proof that a thief acted. The CFPB puts it simply: if you think you may have been a victim of identity theft, you can file a fraud alert.

Experian says an initial fraud alert is for when you suspect you have been or may become a victim of identity theft.

How an initial fraud alert works

The alert works by slowing lenders down. Equifax says a fraud alert encourages companies to take steps to verify your identity before extending credit in your name. TransUnion says it tells creditors to take extra steps to verify your identity. Lenders will call you to check on a credit application made in your name.

That phone call is the point. Say a thief tries to open a card using your information. The lender spots the alert and calls you before going ahead. TransUnion says this can help you spot potential identity theft.

When you place the alert, you give a phone number. Experian says your fraud alert phone number may be used by lenders to verify your identity. Pick a number you can actually answer.

How long the alert stays on and how to renew it

The alert lasts one year. The FTC says an initial fraud alert lasts one year, but you can renew it. Experian says an initial fraud alert remains on your credit file for 1 year. Each alert deactivates itself on a preset expiration date.

Renewing is easy. Experian says any of the three alerts can be renewed starting three months before it runs out. So set a reminder a few weeks before the year is up and renew before the alert drops off.

The CFPB says an initial fraud alert lasts up to one year unless you decide to remove it sooner. You are not stuck with it.

How to place an initial fraud alert

Placing one is fast, and you only have to ask once. Equifax says you may contact any of the three nationwide credit bureaus, Equifax, Experian, and TransUnion, to request a fraud alert. The FTC says the bureau you file with is required to pass your request along so the other two bureaus add the alert too.

So choose a single bureau and file with that one. Experian says a fraud alert placed at any credit bureau is shared with the others. TransUnion says it will notify Experian and Equifax so they can add an alert to the report they have for you. Equifax says once you place an alert with one of the bureaus, that bureau will send your request to the other two.

It costs nothing. Experian says placing a fraud alert is completely free with no credit card required. Equifax says both types of fraud alerts are free. TransUnion says you can add or remove a fraud alert at any time for free.

For a fuller walkthrough, see how to place fraud alert. For a wider look at all the alert types, start with the fraud alert page.

Where an initial fraud alert falls short

An alert has limits. Know them before you rely on it.

It does not lock your report. The FTC says a fraud alert, unlike a credit freeze, does not stop businesses from looking at your credit report. A lender can still pull your credit report. All the alert does is ask them to check with you first.

It does not hurt your credit. Experian says adding a fraud alert causes no damage to your credit history or your credit scores. Nor does it change your chances of being approved for a loan or credit card in either direction.

Initial fraud alerts vs. extended fraud alerts and active duty alerts

There are three types of fraud alerts. Experian lists the three types: the initial fraud alert, the extended fraud alert, and the active duty alert. You have the right to request any one that applies to you.

Equifax says an extended fraud alert is for victims of fraud or identity theft. Equifax says an extended fraud alert is available to someone whose identity has been stolen or who has been defrauded. It lasts for 7 years. The initial alert asks for suspicion. For the details, read how long does an extended fraud alert last.

An active duty alert is for service members. Experian says this one is for a service member on active duty who wants to safeguard their credit file. Equifax says the active duty alert works much like an initial fraud alert and runs for a year as well.

Removing an initial fraud alert

The alert can come off at any time you choose. Experian says removal can be done by mail or by uploading a request online. You must contact each credit bureau individually.

That last part matters. Experian says the bureaus notify one another when an alert is activated, but they do not when one is removed. Placing one alert covers all three bureaus. Removing it takes three separate requests.

TransUnion says you can remove a fraud alert any time using its online Service Center with no effect to your credit score.

How a fraud alert compares with a credit freeze

A freeze works differently. The FTC says that even if you already have a credit freeze in place, you can also place a fraud alert. Nothing forces you to choose between them.

The FTC also says credit freezes and fraud alerts can help stop someone who already stole your identity from misusing it again. A freeze blocks access to your report. An alert lets lenders in but makes them check with you first. For a side-by-side, see credit fraud alert vs freeze.

The FTC says you can get another free report if you have a fraud alert on your credit file. Check it for any accounts that are not yours.