Fraud Alerts

 Last time, we talked about how to manage Credit Freezes. I promised to discuss something else that could impact your loan - Fraud Alerts.

A fraud alert is a notation on your credit report that states that in order for any new credit to be obtained, the lender has to first call you to confirm that you are allowing this account to be opened.  In order for this to work properly, make sure that the phone numbers you supply the bureaus with is accurate.  If you enroll in fraud alert protection, you will be asked for a phone number that you can be reached at to verify any new activity.  If you move or change your number, you will not be able to get a home loan, or any new credit, until you can be reached for confirmation at the number on your credit report.  If the number is wrong, you have to call the credit bureaus, have them change it and then re-run your credit so that the phone number is correct on the credit report and the lender can reach you at that number.  Lenders are very strict about this.  If you are in escrow and the lender tries to call the number on the credit report and it isn’t the right number, it will cause problems. 

My suggestion is to always keep the bureaus up-to-date on any changes with your phone numbers when you have a fraud alert on your credit.  Take care of any needed changes months before you apply for a loan.  It will make a huge difference in having a much smoother loan process. I'm ready to discuss this further - just send me an email and I'll be happy to go into more detail, jeff@somloans.com.