If you are the victim of identity theft, one of the most important things you can do is put a fraud alert on your credit report. With a fraud alert on your credit report, no one will be able to open new accounts in your name. Although this may be a bit annoying – particularly since it prevents you from being able to open accounts as well – it’s a necessary step for keeping yourself protected from the common fraud schemes that are so prevalent out there. Understanding the different types of fraud alerts though is critical to know how to use them most effectively.
Initial Fraud Alert
Extended Fraud Alert
As the name implies, an extended fraud alert is one that will stay on your credit report for a longer period of time. In fact, this type of fraud alert stays in place for seven years. Therefore, this is the type of alert you should request if you are the victim of identity theft. If you are the victim of identity theft and you request to file an identity theft report, an extended alert will be automatically placed on your report.
When you place an extended fraud alert on your report, you are entitled to receive two free copies of your credit report within a twelve month period. In addition, the credit reporting companies are required to remove your name from prescreened credit offers as well as from marketing lists for five years. If you want to start receiving these offers again, however, you can ask the companies to put you back on these lists.
Regardless of the type of alert you put on your credit report, you have to provide proof of your identity in order to get the alert put on your report as well as to get it removed. This may include providing your social security number, your address, your name and other personal information.
Although it may seem like a hassle, having an alert placed on your report is a good way to keep you protected. This is because businesses must verify your identity before they issue credit to you. While this can cause some delays in getting your accounts approved, it does give you peace of mind in knowing that an identity thief will not be able to open new accounts in your name.
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