What Happens When Someone Tries to Access Frozen Credit Report

Whenever a lender tries to access the credit report that is frozen he is informed that he cannot be the credit report point to the fact that it is a Security freeze on that particular credit report. In case an identity thief is trying to use a credit report in order to open a new credit account the transaction will probably not go through because the lender will not be able to see the credit report. However, no direct communication occurs between the credit bureau and the person applying for credit.

The credit bureau only informs the lender that the credit file is frozen. It does not directly deny the credit as a credit bureau does not approve a decline credit applications. That is the decision of the lender and the lender alone.

The lender in turn may tell the identity thief of the person which try to make the application that he cannot precede further because the credit file is frozen. He may then ask the person to unfreeze the credit file before proceeding any further thinking that the person making the application is you. In this manner that he would learn that the credit file is frozen.

Security and fraud alerts on credit reports also in a similar manner in order to stop identity keeps from committing credit fraud. Lenders receive information that the owner of the credit report could be a victim of identity theft and hence they should follow certain steps to verify the identity of the application and even contacting the person directly before opening a new credit account.

The fair and accurate credit transactions act has made it mandatory for all lenders to take appropriate action when they find a fraud alert on the credit report. Ignoring a fraud alert and not taking any action is illegal and a punishable crime by the federal law. The initial fraud alert lasts for a period of 90 days and if you do not find any evidence of credit fraud being committed you may choose to cancel the alert by letting a collapse. If however you to find evidence that your identity has been stolen and used to commit fraud you can file a statement with the police and then subsequently filed a fraud victim’s statement with the credit bureaus. Putting a fraud alert and a fraud victims statement on the requires you to follow the process with one credit bureau. It is automatically shared with the remaining credit reporting agencies. Once a fraud alert victim is added on your credit report it remains on the report for a period of seven years.

In most circumstances you should not face any particular problem in getting approved for credit in spite of having a fraud at the statement attached to your credit report. You will however find a certain delay in application process as the lender will be required to verify your identity. You may also not got approved first at an automated preapproved credit offers such as an instant credit approval during time off a purchase at a department store. You should you be not that the banking regulatory authorities have not by banks that they cannot refuse credit to a person simply because he has a security alert on his credit report.

Another step that you can take is putting a Security freeze on your credit card. Putting a Security freeze stops lenders from access to your credit report completely. It takes you of the credit market and does not allow you to be screened for any kind of preapproved offers as well. In order to apply for any kind of new credit where the lender will need to review your credit report, you will have to be freeze your credit report by using a special pin number that would have been provided to you during the time of putting the Security freeze.

Credit reports used for race purposes such as by mobile phone companies to prevent fraud, landlords and some employers to evaluate applications and to prevent fraud in general. In case you come face to face with a situation where you need someone to access your credit report in order to verify your credentials you may find it inconvenient to have the Security freeze in place as you will need to have the pin number in order to remove the Security freeze and even then it may take a couple of days still this is accomplished.

You should understand that identity theft and credit fraud different things. Putting a security alert on your credit report or putting a freeze on it may safeguard your best credit fraud but does not safeguard you against identity theft which may subsequently be used to commit other kinds of fraud such as an government benefits fraud, insurance fraud and employment fraud.

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