Credit Freeze vs. Fraud Alert | What’s the Difference, and Which One Should You Use?

If you’re worried about identity theft or your personal information has already been compromised, you may be looking for ways to protect your credit. Two of the most common tools are the credit freeze vs fraud alert.

Both sound similar, and both are designed to prevent unauthorized use of your credit, but they work in different ways, and each comes with its own pros and cons.

At Ware Law Firm, we help Mississippi consumers take control after identity theft, unauthorized accounts, and credit reporting problems. In this post, we break down the key differences between a credit freeze and a fraud alert so you can make an informed decision about which one is right for your situation.

What Is a Credit Freeze?

A credit freeze (also known as a security freeze) is a free tool that blocks access to your credit reports. This means no lender or company can pull your credit file or approve new credit in your name while the freeze is in place, unless you lift it.

How It Works:

• You place a freeze with each of the three credit bureaus: Equifax, Experian, and TransUnion.
• No one (not even you) can open new accounts while the freeze is active.
• You’ll receive a PIN or password to unfreeze or temporarily lift the freeze when needed.

When to Use a Credit Freeze:

• Your Social Security number or sensitive personal data has been exposed in a data breach.
• You’ve been a victim of identity theft.
• You want maximum control over new credit activity in your name.
• You don’t plan on applying for any new credit soon.

What Is a Fraud Alert?

A fraud alert is a notice placed on your credit file that warns lenders you may be a victim of identity theft. It does not block access to your credit report, but it tells lenders to take extra steps to verify your identity before opening a new account.

How It Works:

• You only need to contact one credit bureau to place the alert, and they notify the other two.
• A fraud alert stays active for 1 year, unless you renew it.
• Lenders can still access your credit report—but they are expected to verify your identity first.

When to Use a Fraud Alert:

• You suspect fraud or lost your wallet, but no accounts have been opened yet.
• You want some protection, but still plan to apply for credit soon.
• You need a quicker setup and don’t want to manage PINs or freezes.

Credit Freeze vs. Fraud Alert: Key Differences

Will a Credit Freeze or Fraud Alert Hurt My Credit?

No. Neither a credit freeze nor a fraud alert affects your credit score. These are protective tools, not punishments. However, they may delay credit approvals if you’re applying for a new loan or credit card while the protections are in place.

Can I Use Both a Fraud Alert and a Credit Freeze?

Yes, you can, but it’s usually not necessary to use both at the same time. Here’s why:

• A credit freeze already blocks all access to your credit file, so a fraud alert would be redundant.
• However, if you unfreeze your credit temporarily, a fraud alert can provide an added layer of protection during that window.

We typically recommend choosing one based on your needs. If you’re unsure, start with a fraud alert; it’s easier to set up, and you can upgrade to a freeze if needed.

When You Should Consider a Credit Freeze (Examples)

• You discover someone opened a credit card or loan in your name.
• You receive collection calls for accounts you never opened.
• Your personal information was exposed in a data breach (like with Equifax or a hospital).
• A credit check was done without your consent.

In these cases, a credit freeze offers the most control and the strongest protection.

When a Fraud Alert Might Be Enough

• You lost your wallet or had documents stolen, but no accounts have been misused—yet.
• You received a phishing email or scam call and want to be cautious.
• You’re applying for a mortgage, auto loan, or credit card soon and want lighter protection.

A fraud alert tells lenders to slow down—but doesn’t lock you out of credit approvals entirely.

How to Place a Credit Freeze or Fraud Alert

For a Credit Freeze, contact each bureau:

• Equifax: Freeze site
• Experian: Freeze site
• TransUnion: Freeze site

You’ll need:

• Full name
• Date of birth
• Social Security number
• Address history
• Valid photo ID

For a Fraud Alert:

Contact any one of the credit bureaus and they’ll notify the other two:

• Equifax: 1-800-525-6285
• Experian: 1-888-397-3742
• TransUnion: 1-800-680-7289

The alert will appear on all your credit reports within 24–48 hours.

Legal Protections Under Federal Law

Both tools are provided through the Fair Credit Reporting Act (FCRA), a federal law that gives you rights if your credit is misused or reported inaccurately.

Under the FCRA, you can:

• Dispute inaccurate items on your credit reports
• Freeze or unfreeze your credit for free
• Place and renew fraud alerts
• Sue credit bureaus, creditors, or debt collectors who violate your rights

If someone accessed your credit after a freeze, or if a creditor ignored a fraud alert and opened an account anyway, they may have violated the law, and you may have a right to sue.

What If You Already Have Identity Theft on Your Record?

If someone has already used your information to open accounts or commit fraud, a credit freeze or fraud alert is just the start.

You’ll also need to:

• File an identity theft report with the FTC at IdentityTheft.gov
• File a police report
• Contact each creditor involved
• Dispute the accounts with all three credit bureaus

And if those disputes are ignored or denied, it’s time to contact a consumer protection attorney.

When to Contact Ware Law Firm

If your credit has already been affected—or if creditors or collectors continue to report or pursue accounts you didn’t open—legal action may be your best option.

At Ware Law Firm, we help people across Mississippi who are dealing with:

• Identity theft
• Unauthorized credit pulls
• Accounts opened during a freeze
• FCRA violations
• Harassment from debt collectors over fraudulent accounts

We know how damaging credit fraud can be—not just financially, but emotionally. And we’re here to help you fix it, hold the responsible parties accountable, and move forward with peace of mind.

Get Help with Credit Reporting or Identity Theft Issues

If you’re unsure whether to use a credit freeze or a fraud alert, or if something has already gone wrong, don’t wait.

Call Ware Law Firm or fill out our online contact form for a confidential consultation with a Mississippi consumer protection attorney.

Your credit, your reputation, and your future deserve protection. Let us help you take control.