EyeOnWhat it means
Both tools are aimed at identity theft. With a freeze, most lenders cannot view your file, so most applications that need a credit check cannot go through. With an alert, a note on your file asks the lender to confirm the applicant is really you.
Different countries offer different versions, with different names, and some do not offer them at all.
How it works
Where freezes are available, you typically request one from each credit reference agency, and you can lift it temporarily when you apply for credit yourself. Alerts usually last for a set period and may be renewable.
Neither tool stops someone using an existing account, such as a stolen card, so monitoring statements remains important.
A simple example
Someone discovers their details were in a data breach. They check their credit reports for unfamiliar accounts, consider whether a freeze or alert is available where they live, and watch bank and card statements for odd transactions. If they later plan to apply for a mortgage, they would lift the freeze for the lender's check.
Things worth checking
- Find out which agencies hold files in your country and how to contact each.
- Keep any PINs or passwords that you set in a safe place.
- Remember to lift a freeze before applying for credit.
- Report suspected fraud to your bank and to the relevant authorities.
How it varies by country
Availability, cost and process vary by country. Where no freeze exists, other safeguards such as protective registration services or monitoring may be available.