Credit Freeze vs. Fraud Alert: Which One Do You Need?

Bottom line: A credit freeze stops anyone, including you, from opening new credit in your name until you lift it. A fraud alert lets lenders see your report but tells them to verify it's you before opening new credit. Both are free, and the FTC says you can use both at once. This applies to anyone worried about identity theft or a data breach.

Here's the FTC's guidance side by side, so you can pick what fits your situation in a few minutes.

What is the difference between a credit freeze and a fraud alert?

A credit freeze blocks new credit in your name while it's in place. A fraud alert makes businesses check with you before opening new credit, but doesn't stop them from seeing your report (FTC).

	Credit freeze	Initial fraud alert	Extended fraud alert
What it does	Nobody can open new credit in your name, including you, until you lift it	Businesses must try to verify it's you before opening new credit	Same as initial, plus off bureau marketing lists for unsolicited credit and insurance offers for five years
Who can get it	Anyone, for any reason	Anyone who is, or suspects they may be, affected by identity theft	People with an FTC identity theft report or police report
How long it lasts	Until you lift it	One year, renewable	Seven years
How to place it	Contact all three bureaus	Contact one bureau; it must tell the other two	Contact one bureau; it must tell the other two
Cost	Free	Free	Free

Source: FTC, Credit Freezes and Fraud Alerts.

When should you use a credit freeze?

You should consider a credit freeze any time you want to stop new accounts from being opened in your name. The FTC says a freeze is always a good idea, and even more important if your Social Security number was exposed in a data breach or an identity thief misused your information (FTC).

A freeze is free to place and lift, and the FTC says it doesn't affect your credit score (FTC). When you need to apply for credit, you can lift the freeze temporarily at the bureau the lender will use, then put it back.

How fast does a credit freeze take effect?

A credit freeze requested online or by phone must be placed within one business day. A request to lift it online or by phone must be handled within one hour. By mail, the bureau has three business days to place or lift it (FTC).

When should you use a fraud alert?

You should use a fraud alert if you are, or think you may be, a victim of identity theft. An initial fraud alert lasts one year and you can renew it. Placing one also lets you get a free copy of your credit report from each bureau (FTC).

If identity theft already happened and you've filed an FTC identity theft report at IdentityTheft.gov or a police report, you can place an extended fraud alert that lasts seven years (FTC).

Can you have a credit freeze and a fraud alert at the same time?

Yes. The FTC says that even if you already have a credit freeze, you can also place a fraud alert (FTC). In its identity theft recovery steps, the FTC tells victims to place a fraud alert and get their credit reports even if they already have a freeze, and to freeze their credit too if they haven't (FTC).

What should you do after you place a freeze or an alert?

After you place a credit freeze or fraud alert, review your credit reports for accounts or inquiries you don't recognize (FTC). A freeze or alert helps protect you going forward, but it doesn't change what's already on your report.

If you find something that isn't yours, see Account on Your Credit Report That Isn't Yours? Do This First. You have the right to dispute it. A credit bureau generally has 30 days to investigate a dispute. It can take up to 45 days if you dispute after getting your free annual credit report, or if you send more relevant information during the investigation (CFPB).

How does Dispute Nerds help?

Dispute Nerds is AI-powered credit dispute software. The AI analyzes your credit report and flags items that may be inaccurate or incomplete, including accounts that may not be yours. You review the findings and decide what, if anything, to dispute. Then you sign and send your own disputes. Dispute Nerds never files disputes for you.

Findings are free. Your credit report comes from our monitoring partner and is billed separately.

FAQ

Does a credit freeze hurt my credit score?

No. The FTC says a credit freeze doesn't affect your credit score.

Do I have to contact all three bureaus?

For a credit freeze, yes. For a fraud alert, no; contact one bureau and it must tell the other two.

How long does a fraud alert last?

An initial fraud alert lasts one year and can be renewed. An extended fraud alert lasts seven years.

Can I still apply for credit with a freeze?

Yes. You can lift the freeze temporarily, ideally just at the bureau your lender will use, and put it back afterward.

Is either one a substitute for checking my credit report?

No. They help protect you going forward. My suggestion is to keep reviewing your reports for errors that are already there.

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Sources

• Consumer Financial Protection Bureau, "How long does it take to repair an error on a credit report?": https://www.consumerfinance.gov/ask-cfpb/how-long-does-it-take-to-repair-an-error-on-a-credit-report-en-1339/
• Federal Trade Commission, "Credit Freezes and Fraud Alerts": https://consumer.ftc.gov/articles/credit-freezes-and-fraud-alerts
• Federal Trade Commission, "How to recover from identity theft" (Sept. 27, 2024): https://consumer.ftc.gov/consumer-alerts/2024/09/how-recover-identity-theft
• Federal Trade Commission, "Starting Today, New Federal Law Allows Consumers to Place Free Credit Freezes And Yearlong Fraud Alerts" (Sept. 21, 2018): https://www.ftc.gov/news-events/news/press-releases/2018/09/starting-today-new-federal-law-allows-consumers-place-free-credit-freezes-yearlong-fraud-alerts
• IdentityTheft.gov (FTC): https://www.identitytheft.gov/

Last updated: October 19, 2026