If you believe someone has misused your personal information to open accounts or obtain loans, placing an identity theft alert on your credit report offers important safeguards. It instructs lenders to take additional steps to verify your identity before approving new credit. In Maryland, you have several tools available to secure your credit profile.
What is an identity theft alert?
An identity theft alert is a notice placed on your credit file that warns creditors to confirm your identity before extending credit. There are two types: an initial alert, which remains active for one year, and an extended alert, which lasts for seven years. To place an extended alert, you must provide documentation such as a police report or identity theft report.
How does it protect your credit?
When an alert is active, lenders are required to contact you directly before granting credit. This verification process can stop fraudulent accounts from being opened in your name. When you file an alert with one of the three major credit bureaus, they notify the other two automatically, saving you time.
You can still apply for credit during an alert, but the approval process might take longer. However, the alert does not impact your credit score or your ability to use current accounts.
What are your rights in Maryland?
Maryland law allows you to place or remove a security freeze at no cost. You’re also entitled to receive two free credit reports per year from each credit bureau. If your identity has been stolen, you have the right to dispute inaccurate information on your report. Credit bureaus are legally required to investigate and correct such errors within 30 days.
If you notice suspicious accounts or inquiries on your report, placing an identity theft alert adds a layer of protection. It’s a quick and cost-free step that helps you slow down unauthorized activity and buy time to resolve potential issues. Regularly reviewing your credit reports remains an effective way to detect and prevent fraud.