How does a credit freeze differ from a fraud alert?

A credit freeze and a fraud alert are both important tools designed to protect individuals from identity theft, but they serve different purposes and operate in distinct ways. A credit freeze restricts access to an individual's credit report. This means that lenders cannot view the credit report unless the consumer temporarily lifts the freeze. This is particularly useful when someone suspects their personal information has been compromised or is at risk of identity theft, as it prevents new credit accounts from being opened without the consumer's explicit permission. A credit freeze does not affect the consumer's credit score or their existing credit accounts. On the other hand, a fraud alert is a notification placed on an individual’s credit report that warns potential creditors to take extra steps to verify the identity of the applicant before extending credit. A fraud alert is less restrictive than a credit freeze, and it allows creditors to access the credit report after verifying the identity. A fraud alert can usually be set for a shorter period and may need to be renewed. For specific details, processes, and options for setting up either a credit freeze or a fraud alert, it may be beneficial to refer to Equifax’s official web page for the most accurate and up-to-date information.