Once you’ve been a victim of identity fraud, one way to help remedy the situation is to work with a top credit repair company like The Phenix Group. Alternatively, you can help to prevent identity fraud altogether by placing a fraud alert on your credit report.
Fraud Alert Versus Credit Freeze
A credit fraud alert is often confused with a credit freeze. A ‘fraud alert’ simply means that a notice is placed on your credit report for all who access it. Once a lender sees that you have a fraud alert on your file, the lender will be required to verify your identity before extending credit.
This could mean the lender may require an in-person visit to a branch office or other measures to verify that you are who you claim to be. You might think identity verification is a key part of how credit works, but without a fraud alert, anyone can apply for a credit card online or over the phone with just a social security number and name.
A credit freeze, on the other hand, completely cuts off access to your credit report. Even if you are visiting a branch in person to apply for a loan, the lender will not be able to access your credit report. You need to call the credit bureaus individually and have the freeze lifted before access is granted to anyone. In fact, a credit freeze is so strict that if you placed an earlier fraud alert, the lender wouldn’t even be able to view it until the freeze was lifted.
Creating a Fraud Alert
Getting a fraud alert placed on your credit report is a relatively simple affair. Simply contact each credit reporting bureau and ask that a temporary fraud alert be placed on your credit report. This temporary alert will be in place for one year.
There are no preconditions for placing a temporary fraud alert, and if you’ve been notified by a bank or someone with your social security number that your information may have been compromised, it’s a good idea to have a fraud alert placed.
There is another type of fraud alert known as an ‘extended fraud alert,’ which lasts for seven years. This fraud alert is more difficult to obtain and is only available for people who have been a victim of identity theft. Getting an extended alert requires a police report and additional documentation to verify that you’re a victim of identity fraud.
Credit Repair Companies Can Help Clear Your Name
If you’ve recently accessed your credit report and found accounts you don’t recognize, it could be identity fraud or a simple error in the bank’s filing system. The latter can be cleared up by working with a licensed credit repair firm such as The Phenix Group.
With our staff’s knowledge of the ins and outs of credit reports, we’ll be able to get the incorrect items removed, help you build good credit, and understand how secured credit cards work so you can focus on your life rather than waiting on hold with banks and creditors!