When Should I Place Fraud Alert On My Credit?

If you’re afraid that you might be a victim to fraud, it may be a great idea to place fraud alert on your credit report.

A fraud alert is a notification you place on credit report that warns creditors that you may be a victim of identify theft. You would place this request with a nationwide consumer reporting agency.

You can think of a fraud alert as a “red flag” for those third parties that may consider offering you credit. There is no fee for fraud alerts and it will still allow third parties access to your credit reports.

But, if there is a fraud alert on your credit report, third parties will be encouraged to take certain steps to verify your identity before extending you credit. After you place a fraud alert with one nationwide consumer reporting agency, it will be automatically placed with the other nationwide consumer reporting agencies. For example, if you place it with Transunion, it will be automatically placed with Equifax and Experian.