A fraud alert does not block access to your credit reports like a credit freeze does, instead it notifies potential lenders to take additional steps to verify the applicant’s identity before issuing lines of credit, which may involve the creditor contacting the applicant by phone to confirm their identity.

The notification tells creditors that you have been or are at risk of being a victim of fraud. Placing a fraud alert is free and it will not impact your credit score.

When you request a fraud alert with one credit bureau, the other major credit bureaus will be notified, and an alert will be placed with those agencies as well.

There are three types of fraud alerts.

An Initial Fraud Alert

Also referred to as temporary fraud alerts because they expire after one year. Everyone has the right to add these to their credit reports, when in place a fraud alert asks creditors to take extra precautions to verify the identity of the person making a request for credit.

Extended Fraud Alert

You can place an extended fraud alert if you have been a victim of credit fraud or identity theft. You may need to provide documentation that you have been the victim of identity theft when requesting an extended fraud alert. An extended fraud alert will last seven years. The extended fraud alert requires creditors to contact you before issuing credit in your name.

Active-Duty Fraud Alert

An active-duty alert is available only to active-duty service members, they expire after a year and ask creditors to have a reasonable belief that they know the identity of the person making a request.

Contact Equifax, Transunion or Experian to request the fraud alert and that agency will notify the others. You can add the alert by phone or by visiting the credit bureaus website. Equifax, Experian, TransUnion.