If you’ve been impacted by identity theft, it can be incredibly overwhelming to try to navigate the aftermath of this crime. It’s imperative to understand that there are a considerable number of tools you can utilize to aid in the recovery process. For example, you may wish to place a credit freeze or fraud alert on your credit report. However, if you’re unsure how these differ or which one is right for your unique circumstances, you’ll want to keep reading. The following blog explores what you should know about these matters, including the difference between these options and how a Michigan identity theft lawyer can help you recover if you have fallen victim to identity theft.
How Do a Credit Freeze and Fraud Alert Differ?
When you fall victim to identity theft, it can be incredibly overwhelming to navigate your legal options all while trying to prevent additional damage to your credit score. As such, one option you may want to consider is placing a credit freeze or fraud alert on your report.
A credit freeze completely locks your credit, making it impossible for anyone to open an account in your name. Creditors will be unable to access your report and thus cannot approve any applications in your name. This is true even if the applications are legitimate, meaning you are the party to initiate them. You can, however, temporarily lift the freeze when necessary, such as applying for a mortgage or auto loan. A credit freeze will last indefinitely, as there is no expiration associated with this process. Instead, you must
A fraud alert, on the other hand, is a notice left on your credit report that informs potential creditors to take additional steps to verify your identity before opening accounts in your name. This allows creditors to continue to access your account, but often, they must call you or take other reasonable measures to ensure you are the applicant before opening a line of credit. A standard fraud alert will remain on your account for one year, but you may be able to get an extended alert, which can last several years.
Which One Is Right for Me?
Typically, a credit freeze is ideal for those who are not in the stage of their lives where they need to apply for different loans, like student loans, mortgages, or auto loans. As such, this may be ideal for children or senior citizens who have had their identities compromsied.
A fraud alert, on the other hand, may be more ideal for those who have just gotten married, graduated from high school, or are otherwise at a point in their lives where loan applications are common.
If you are a victim of identity theft, the road to recovery can be incredibly overwhelming. That is why it’s in your best interest to connect with an experienced attorney at Lyngklip & Associates to help you explore your legal options during this matter. Our team can review your case to help you determine the best course of action to prevent additional fraud while fighting to restore your identity. Contact us today to learn more about how we can assist you.
