Credit freeze vs. fraud alert vs. credit monitoring: What’s the difference?

I was at the car dealership about to buy a car when my cell phone rang. The salesperson told me to answer. I did, and the credit manager was on the other end of the call.

Despite the fact that I had already shared my driver's license with the salesperson, he was taking an additional step to verify my identity. I had been a victim of credit fraud a few months before, and had placed a credit alert on my credit reports. The credit manager was calling the phone number listed on my credit report to make sure I wasn't a fraudster trying to impersonate me.

This is exactly how fraud alerts are supposed to work — creating that extra verification step that can stop criminals in their tracks.

Fraud alert vs. credit freeze vs. credit lock: What is credit monitoring?

With data breaches, identity theft, and credit fraud targeting millions of Americans, choosing the right credit protection can mean the difference between catching fraud early and spending months cleaning up financial damage. 

A credit freeze is designed to lock down your credit file completely, while a fraud alert asks lenders or other companies to verify your identity first. Credit locks offer similar protection to freezes, but may cost extra and aren't federally regulated.

Understand your options to choose the right level of protection for your situation.

*No service is 100% foolproof. Scammers can use social engineering or data breaches to steal personal information. Even with a credit freeze or credit lock in place, it’s smart to monitor your credit. 

What is a fraud alert?

When you place a fraud alert, lenders get a warning that you may be an identity theft victim. They will usually take extra steps to verify you're really trying to open an account before approving credit or another service like a cell phone or utility account.

Key advantage: You can place a fraud alert with one of the major credit bureaus (Equifax, Experian or TransUnion) and they automatically notify the other two.

One-year vs. extended alerts

Standard one-year alert: This is the basic level of protection for suspected fraud. It lasts 90 days and can be renewed.

Extended seven-year alert: For confirmed identity theft victims. It requires proof you filed an identity theft report with authorities. It also provides stronger protection including: 

• Free credit reports from all three bureaus 
• Removal from pre-screened credit offers for five years 
• Stronger verification requirements for lenders

Active-duty alerts

Active-duty fraud alert: This is special one-year protection for deployed military members. Designed to address the unique vulnerability service members face when stationed away from home.

Benefits include: 

• Removal from pre-screened credit offers for two years 
• Extra verification requirements for new credit 
• Can be renewed while on active duty

What is a credit freeze?

A credit freeze (also called a “security freeze”) generally prevents someone from opening a new credit account in your name. 

How a credit freeze works: 

1. You contact each major credit bureau (Equifax, Experian, TransUnion) separately to place a freeze
2. They give you a PIN or password, or online access, to lift the freeze when needed 
3. New lenders can't review your credit reports or credit scores until you unfreeze it 
4. Companies you already work with can still access your credit file
5. You must lift the freeze if you apply for new credit

Here the major pros and cons of credit or security freezes:

Source: Nav.com

What is a credit lock?

A credit lock is a term used to describe a service offered by credit bureaus that’s similar to credit freezes that are required by law. This type of service may require a paid subscription. 

But understand that “credit lock” can be used for different services. 

Equifax offers Lock & Alert^TM, a free product that allows you to lock and unlock your credit report.

CreditLock by Experian is part of its premium identity protection subscription that offers additional benefits. 

TransUnion credit lock is a service included with various credit monitoring services, some of which were discontinued in 2025 according to the TransUnion website. 

Key differences from freezes: 

Not federally regulated: Credit locks aren't covered by the same federal protections as freezes, meaning bureaus have more flexibility in how they operate these services, which can change.

Potential fees: While some are free, others are included in subscriptions that cost $10–$30 monthly. 

Faster management: You’ll usually be able to instantly lock and unlock your credit reports, though this may also be possible with a free service. 

Additional features: Often bundled with credit monitoring, identity theft insurance. It is often positioned as premium services with enhanced customer support.

Again, term credit lock can be confusing; make sure you understand what service you’re signing up for. If you only want to freeze your credit, and don’t want additional services, choose a credit freeze. 

What is credit monitoring and why do you need it?

While a credit freeze can be a great way to help protect your consumer credit, it’s risky to rely on it for full protection of your credit information. Here are four reasons why:

1. Credit freezes can be hacked. Some consumers have discovered they were victims of credit fraud even with a credit freeze in place. Scammers may be able to unlock a credit file if they steal credentials, or find a way to bypass security protections. 

2. Not all accounts require credit checks. When I was a victim of id theft, the crooks opened two bank accounts under my name, and applied for state unemployment benefits. I found out about those attempts after investigating a suspicious credit alert. 

Services that monitor the dark web or other sources of data may alert you to problems beyond your credit reports with the major credit bureaus. 

3. Your credit reports or scores can change without your knowledge. If you “set it and forget it”, you may not know about changes in your credit reports. A crook may file a change of address, for example. 

Even if fraud isn’t involved, a creditor may mistakenly report your account as late, for example, or a new collection account could appear on your credit reports. Even high balances in comparison with your credit limits (known as “utilization”) can hurt your credit scores. If you aren’t checking your credit reports or scores, you may not know about these problems.

4. Business credit doesn’t offer credit freezes. In addition to using my consumer credit, the ID thieves who targeted me also attempted to open two business loans under my business name. (As of August 2025, only Experian offers business fraud alerts.) 

Credit monitoring doesn't stop fraud, but it does alert you to potential issues so you can take action quickly. Often, the faster you act, the less time and effort it will take to clean it up. 

How to set up each protection (step-by-step)

Here’s how to set up a freeze or fraud alert with each of the three major credit bureaus. 
If you are a victim of identity theft, you’ll want to take additional steps:

• If you have ID theft resolution services through a credit monitoring product or one of your insurance policies, reach out to that service for help.
• Otherwise, IdentityTheft.gov is a great place to start with free resources to guide you through the process of fixing your credit. 

Experian

For fraud alerts:

1. Visit https://www.experian.com/help/fraud-alert/ or call 1-888-397-3742
2. Provide personal identifying information
3. Give contact phone number where lenders can reach you
4. Experian automatically notifies Equifax and TransUnion

For credit freezes:

1. Visit experian.com/freeze/center.html or call 1-888-397-3742
2. Provide Social Security number, date of birth, address
3. Create security PIN or password
4. Save PIN in very secure location - you'll need it to unfreeze your report

For credit locks:

1. Visit Experian's website and credit an account
2. Choose a paid plan (free trial available) or refer to security freeze instructions. 
3. Download mobile app for instant lock/unlock access

Equifax

For fraud alerts:

1. Visit Equifax’s Fraud and Active Duty Alert webpage or call 1-888-378-4329
2. Provide required personal information
3. Specify contact method for lender verification
4. Alert automatically extends to other bureaus

For credit freezes:

1. Visit Equifax.com/personal/credit-report-services/ or call 1-800-349-9960
2. Choose security freeze and complete identity verification process
3. Receive PIN via mail or email
4. Store PIN securely for future freeze management

For credit locks:

1. Visit Equifax Lock & Alert service page
2. Create account with personal information
3. Choose service level (free basic or paid premium)

TransUnion

For fraud alerts:

1. Visit the TransUnion Fraud Alert webpage or call 1-800-680-7289
2. Complete the fraud alert request
3. Provide verification phone number
4. Confirm alert placement with other bureaus

For credit freezes:

1. Visit TransUnion.com/credit-freeze or call 1-888-909-8872
2. Verify identity with personal information
3. Create unique PIN for freeze management
4. Confirm freeze is active on your account

For credit locks:

1. Visit the TransUnion Credit Memberships Help Center to sign up for TransUnion Credit Essentials (Free) or Credit Premium (Paid)
2. Complete account setup process
3. Access lock controls through online dashboard

Note: TransUnion in 2025 discontinued TrueIdentity and TrueIdentity Premium, its legacy credit monitoring services.

Costs, duration and ease of lifting

Credit freeze costs: 

Free to place and lift

Fraud alert costs: 

Free under Fair Credit Reporting Act

Credit lock costs:

Varies by bureau and services. Basic locks may be free, while premium services with additional benefits may cost as much as $30/month. 

Duration: 

• Fraud alerts: One year (renewable), seven years for extended alerts 
• Credit freezes: Permanent until you lift them 
• Credit locks: Permanent until you lift them

Ease of lifting: 

• Fraud alerts: Initial fraud alert expires after one year unless extended.  
• Credit freezes: Online removal usually within minutes, phone requests may take up to one hour 
• Credit locks: Typically instant through mobile apps or websites

Frequently asked questions