Credit Report Freezes and Fraud Alerts

The application process for Visa/MasterCard acceptance requires a quick credit check on the applicant.  This credit check is done by every bank that offers merchant services.  Occasionally we will receive an application from a customer who has a “freeze” on their credit report.  A credit report “freeze” does exactly what is says – it locks down the credit report and prevents creditors (and everyone else) from accessing the report.   The credit report “freeze” must be temporarily lifted for one day in order for the bank to access the credit report.  This is a simple process that can be done by placing a phone call to the credit bureaus.

 A credit report “freeze” should not be confused with a “fraud alert”.  A “fraud alert” is a notation on the credit report that states the consumer has been a victim of identity theft.  Creditors can still access the credit report if a “fraud alert” exists, but are required to take additional steps to properly verify identity.

Posted in Uncategorized on September 1, 2009 by Andrew