Key takeaways
- A credit freeze stops anyone, including you, from opening a new credit account in your name until you lift it. The FTC says it is free and doesn’t affect your credit score.
- A fraud alert asks businesses to verify your identity before granting new credit. It doesn’t stop them from seeing your credit report.
- Anyone can place a freeze at any time, even if you haven’t been a victim of identity theft.
- To freeze your credit, you contact all three credit bureaus: Equifax, Experian and TransUnion.
This article is general information based on FTC guidance, not legal or financial advice.
Why these tools exist
The FTC says credit freezes and fraud alerts “can help protect you from identity theft by making it harder for scammers to open new credit accounts in your name.” They can also help stop someone who has already stolen your identity from misusing it again. Both are free.
Credit freeze
What it does. While a freeze is in place, nobody can open a new credit account in your name, “including you.” If you need to apply for credit or a job, rent an apartment or buy insurance, you can temporarily lift the freeze and put it back afterward.
Who can place one. Anyone, for any reason, even if your identity hasn’t been stolen. The FTC says you don’t have to wait for your Social Security number to be exposed in a data breach or misused by a thief. It says a freeze is “always a good idea,” and even more important if your information has been exposed or misused.
How long it lasts. Until you lift it.
Cost. Free to place and to lift. The FTC also says it doesn’t affect your credit score.
How to place one. Contact all three credit bureaus: Equifax, Experian and TransUnion.
When to lift it. Contact the bureau or bureaus to lift it when you need a lender to see your credit. The FTC suggests finding out which bureau the lender will use, lifting the freeze at just that one, and putting it back once the credit check is done.
Fraud alerts
The FTC says you can place a fraud alert even if you already have a freeze. A fraud alert makes lenders verify your identity before granting new credit in your name. It comes in three types, and the best one depends on your situation.
Initial fraud alert
- What it does: Tells businesses to check with you before opening a new account in your name, usually by contacting you first. Unlike a freeze, it doesn’t stop businesses seeing your credit report.
- Who can place one: Anyone who is, or suspects they may be, affected by identity theft. Placing one also gets you a free copy of your credit report from each of the three bureaus.
- How long it lasts: One year, and you can renew it.
- Cost: Free.
- How to place one: Contact one of the three bureaus. It must tell the other two.
Extended fraud alert
- What it does: Like an initial alert, it tells businesses to check with you before opening a new account. It also requires the bureaus to remove you from their marketing lists for unsolicited credit and insurance offers for five years, unless you ask them not to.
- Who can place one: People who have experienced identity theft and have completed an FTC identity theft report at IdentityTheft.gov or filed a police report.
- How long it lasts: Seven years. You can renew it, but you have to resubmit your FTC or police report.
- Cost: Free.
- How to place one: Contact one of the three bureaus. It must tell the other two.
Active duty alert
- What it does: For active duty servicemembers. It tells businesses to check with you before opening a new account, and removes you from marketing lists for unsolicited credit and insurance offers for two years, unless you ask them not to.
- How long it lasts: One year. After a year you can renew it for the length of your deployment.
- Cost: Free.
- How to place one: Contact one of the three bureaus. It must tell the other two.
The FTC also says active duty servicemembers and National Guard members can get free electronic credit monitoring by contacting each of the three bureaus.
Freeze or alert: how they compare
| Credit freeze | Initial fraud alert | |
|---|---|---|
| What it does | Blocks new accounts in your name, including by you | Asks businesses to verify it’s you before opening new accounts |
| Can lenders see your report? | No, unless you lift it | Yes |
| Who can use it | Anyone, any time | Anyone who is or suspects they’re affected by identity theft |
| How long | Until you lift it | One year, renewable |
| Cost | Free | Free |
| Where to place it | All three bureaus | One bureau, which tells the other two |
Freezing a child’s credit
If your child is under 16, the FTC says you can request a free credit freeze to make it harder for someone to open accounts in their name. It stays in place until you tell the bureaus to remove it. The process is different from an adult’s, and each bureau gives its own instructions.
Check your credit reports too
The FTC suggests regularly checking what’s in your credit report. Accounts you don’t recognise could be a sign of identity theft. See our guide to getting your free credit reports. If you think a scammer has your information, see also our guide on spotting a phishing email.
Frequently asked questions
Does a credit freeze hurt my credit score? The FTC says it doesn’t affect your credit score.
Does it cost anything? No. The FTC says there is no cost to place or lift a credit freeze, and fraud alerts are free.
Can I still get a loan with a freeze? Yes, if you lift it. The FTC says to lift it at the bureau the lender will use and put it back afterward.
Do I need a freeze and a fraud alert? You can have both. The FTC says you can place a fraud alert even with a freeze in place.
Information checked on: October 31, 2026. Rules and bureau processes change, so check the FTC’s current page.
Sources
- FTC, Credit Freezes and Fraud Alerts (August 2025)
Money note: this article is for general information and is not financial advice.