Whenever there is a fraud alert found on a credit report the lender is required by the fair and accurate credit reporting act to take certain actions to verify that the duty of the borrower. In case of an extended victims statement present on the credit report the lender may try to contact you can request additional identifying documents to verify your identity. This procedure can slow down the lending process from being completed but should not however stand in the way of getting the offer approved in the end.
However manner review of the credit report is not possible in many instances. Getting approved for instant credit during the time of purchase in a store is one such an example. The process is completely automated and the sales representative does not have the power of the resources to override the automatic credit approval process. This may either result in the credit application being denied requires you to contact your credit office in order to furnish you with a written letter that you can then submit along with further documentation to prove identity. As mentioned before this entire process may take some time. Some lenders may not deal with credit reports that have a security alert attached to it as a matter of policy. It should be noted that the Banking Regulatory agencies have notified the banks that they are not allowed to deny credit to a consumer simply because there is a security alert on the file.
However, the delay in the credit approval process could affect your credit score if it calculated before the application has had a chance to come through. In case of the instant credit situations where manual credit approval is not possible such as departmental credit, your credit score could suffer due to one additional account that could otherwise have been reported on your credit report.
However, for a person who stands the risk of credit fraud, this minor affect is well worth the security and peace of mind that having a security alert on the credit report will bring.