Two defenses, two strengths
A fraud alert and a credit freeze both exist to stop someone from opening accounts in your name, but they take different approaches. A fraud alert is a flag on your credit file that tells lenders to take extra steps to verify your identity before approving new credit. Your file stays open and usable, just with a warning attached.
A credit freeze, sometimes called a security freeze, is stronger. It locks your credit reports so that no new lender can pull them at all. Since most lenders will not approve an account without checking your credit, a freeze effectively blocks new accounts until you lift it. Both tools are free by federal law, thanks to a 2018 update that removed the fees that used to apply.
How a fraud alert works
Placing a fraud alert is quick and you only have to contact one of the three bureaus. That bureau is required to notify the other two, so one request covers all three files. A basic fraud alert lasts one year and can be renewed, and it does not stop you or anyone else from using your credit normally.
If you have been a confirmed victim of identity theft and file a report, you can request an extended fraud alert that lasts seven years. There is also a free active-duty alert for service members. A fraud alert is a good fit when you want a layer of caution without the hassle of unlocking your file every time you apply for something.
How a credit freeze works
A freeze is more hands-on because you must place it separately with each of the three bureaus, Equifax, Experian, and TransUnion. Each gives you a PIN or account login you use to lift the freeze later. When you want to apply for new credit, you temporarily lift, or thaw, the freeze at the relevant bureau, which can usually be done online in minutes.
Importantly, a freeze does not affect your credit score, and it does not touch your existing accounts. You can still use your current cards and loans normally, and your score keeps calculating as usual. What a freeze will not do is protect accounts you already have, so it is not a substitute for watching your statements for unauthorized charges.
Choosing the right one for your situation
Reach for a fraud alert when you want lightweight protection or a reminder to lenders to double-check, for example after a data breach where you are not sure your information was misused. It is easy to set, covers all three bureaus with one call, and does not interrupt your daily use of credit.
Choose a freeze when you want the strongest lock, such as after confirmed identity theft, if you are not planning to open new credit soon, or simply for ongoing peace of mind. Many people keep a permanent freeze in place and thaw it only when they apply for something, which is a reasonable long-term strategy.
Setting it up the right way
You can place either protection directly with the bureaus for free, online or by phone, and you never have to pay a third party to do it for you. Keep your freeze PINs and confirmation details somewhere safe, because you will need them to lift a freeze later. If you froze all three, remember you must thaw all three, or at least the one a given lender will use.
Whichever you choose, pair it with regular monitoring. Protection tools stop new fraud, but spotting problems early still depends on you reviewing your reports and accounts. If you find an account or item that is not yours, you have the right to dispute that inaccurate information with the bureau for free, and it is something you file yourself.
Fraud alerts and freezes are your free first line of defense, and Subefy helps you stay alert to what they cannot catch on their own. With three-bureau monitoring you can spot a suspicious change quickly, understand what it means in plain language, and know your free, self-filed dispute rights if something inaccurate appears. Estimates are educational, results vary, and no specific result is guaranteed.