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.
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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.
Feature | Fraud Alert | Credit Freeze | Credit Lock | Credit Monitoring |
Protection level | Medium: adds verification step | Highest: blocks certain access* | Highest: blocks certain access* | Lower: alerts to various activity |
Cost | Free | Free | Varies (free to $30/month) | Free to $30/month |
Duration | One year (seven years extended) | Until you lift it | Until you lift it | Ongoing subscription |
Setup process | Contact one bureau | Contact each bureau separately | Sign up through bureau website | Sign up for service |
Ease of removal | Automatic expiration | Online or phone/often instant | Online or phone/often instant | N/A - ongoing service |
Federal regulation | Yes (FCRA) | Yes (FCRA) | No | Limited |
Stop new accounts | Often yes (relies on lender compliance) | Typically yes* | Typically yes* | No |
*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:
- You contact each major credit bureau (Equifax, Experian, TransUnion) separately to place a freeze
- They give you a PIN or password, or online access, to lift the freeze when needed
- New lenders can't review your credit reports or credit scores until you unfreeze it
- Companies you already work with can still access your credit file
- You must lift the freeze if you apply for new credit
Here the major pros and cons of credit or security freezes:
Pros
- Strongest protection available
- Free to everyone since 2018
- Does not expire
- Won’t affect your credit scores
- Regulated by federal law (FCRA) for consumer credit
Cons
- Must lift freeze for new credit applications
- Must contact each individual credit bureau to place or lift freeze
- Can slow down credit applications
- Must securely maintain PIN/password info
- Not currently available for business credit
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 & AlertTM, 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 are being 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.
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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:
- Visit https://www.experian.com/help/fraud-alert/ or call 1-888-397-3742
- Provide personal identifying information
- Give contact phone number where lenders can reach you
- Experian automatically notifies Equifax and TransUnion
For credit freezes:
- Visit experian.com/freeze/center.html or call 1-888-397-3742
- Provide Social Security number, date of birth, address
- Create security PIN or password
- Save PIN in very secure location - you'll need it to unfreeze your report
For credit locks:
- Visit Experian's website and credit an account
- Choose a paid plan (free trial available) or refer to security freeze instructions.
- Download mobile app for instant lock/unlock access
Equifax
For fraud alerts:
- Visit Equifax’s Fraud and Active Duty Alert webpage or call 1-888-378-4329
- Provide required personal information
- Specify contact method for lender verification
- Alert automatically extends to other bureaus
For credit freezes:
- Visit Equifax.com/personal/credit-report-services/ or call 1-800-349-9960
- Choose security freeze and complete identity verification process
- Receive PIN via mail or email
- Store PIN securely for future freeze management
For credit locks:
- Visit Equifax Lock & Alert service page
- Create account with personal information
- Choose service level (free basic or paid premium)
TransUnion
For fraud alerts:
- Visit the TransUnion Fraud Alert webpage or call 1-800-680-7289
- Complete the fraud alert request
- Provide verification phone number
- Confirm alert placement with other bureaus
For credit freezes:
- Visit TransUnion.com/credit-freeze or call 1-888-909-8872
- Verify identity with personal information
- Create unique PIN for freeze management
- Confirm freeze is active on your account
For credit locks:
- Visit the TransUnion Credit Memberships Help Center to sign up for TransUnion Credit Essentials (Free) or Credit Premium (Paid)
- Complete account setup process
- Access lock controls through online dashboard
Note: TransUnion has announced that TrueIdentity and TrueIdentity Premium, its legacy credit monitoring services, will be discontinued in 2025.
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
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Gerri Detweiler
Education Consultant, Nav
Gerri Detweiler, a financing and credit expert, has been featured in 4,500+ news stories and answered 10,000+ credit and lending questions online. In addition to Nav, her articles have appeared on Forbes, MarketWatch, and Startup Nation. She is the author or co-author of six books, including Finance Your Own Business, and she has also testified before Congress on consumer credit legislation.