credit freeze

A fraud alert means that lenders must take extra precautions to verify your identity before granting credit in your name. It also entitles you to a free credit report from each of the bureaus.

Fraud alerts, however, aren't foolproof. If you'd like extra protection, you can get a credit freeze.

When you freeze your credit record, you prevent lenders from seeing your credit report unless you specifically grant them access. This can prevent identity thieves from taking out new credit in your name, even if they have your Social Security number and other personal information.

Your current creditors are exempt from the freeze, and you can use a PIN or password to open your file for certain lenders or for a certain time period if you plan to apply for credit.

A credit freeze may be a new option for you. In the past, only certain states allowed residents to freeze their reports. But the freeze became available nationwide on November 1, 2007.