There’s good news for anyone who worries that their monetary information has fallen into the wrong hands. Consumers now have a new tool at their disposal; they can place a “Fraud Alert” on their credit file.
Crime Alerts help stop anyone from opening new accounts in your name. They act as a red flag on your credit score, detectable only when enterprises access your file to doubtless extend you credit. To put a warning on your account, call one of the three credit reporting agencies and ask them to flag your credit record for crime. Inside 24 hours, a warning will be attached to your credit file and your name will be removed from pre- authorised credit and insurance applications for two years.
Types Of Crime Alerts
An “Initial Alert” will be active on your credit report for 90 days. Use this if someone has gained access to personal information that might be used to open accounts in your name, for example your Social Security number or your birthday. Once an initial alert is prepared potential creditors must determine your identification prior to extending credit, so you should provide them with a telephone number where you may be simply reached. The caution will really help to ensure that you are the only one opening accounts in your name.
An “Extended Alert” is recommended if your identity has been taken. With an extended alert, your credit log will remain guarded for seven years. Additionally, your name will be removed from lists selling prescreened credit offers for 5 years. In order to qualify for an extended fraud alert, you'll need to provide evidence of identity theft, such as a police report.
Active duty members of the army are eligible for a “Military Fraud Alert.” This alert allows members of the military on active duty to stop any person from opening accounts in their name while they are overseas.
Useful Hints
Experian, Equifax and Trans- Union (the 3 credit-reporting agencies) share information, so after calling one company, the other two will be alerted.
If you want to sign up for a loan during the period that your credit file is on alert, inform your lender.
To get rid of a fraud alert, you'll need to send requests in writing to one of the three credit- reporting agencies.
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