Fraud Alert: Does it help?

So, have any of you Ohio tax payers received your letter from the state of Ohio saying your name and Social Security number were on that stolen laptop? The state has offered those concerned about identity theft one year of protection services with Debix with no charge to the potential victim. Or maybe you don't live in Ohio but suspect you might be a victim (or potential victim) of identity theft. There is something else you can do to protect your credit.

One thing the Federal Trade Commission recommends is placing a fraud alert on your credit reports.

But what is a fraud alert? The major credit reporting bureaus attach to your credit report (at your request) to let potential creditors know that your data has been compromised, and before opening any kind of credit account (credit cards, loans, cell phone accounts, etc.), they should contact you by phone to confirm that it is actually you requesting this credit. It also entitles you to a free copy of your credit report. The initial fraud alert can be placed if you suspect you are a victim (or a potential victim) of identity theft and is effective for ninety days. You can request an extended fraud alert, but you must provide a copy of your identity theft report.

So does it help? Yes and no. It depends on whether or not creditors are willing to call you. Some will contact you as they should, and others will not. With companies that don't, some will automatically deny credit, which is only a problem if you are trying to obtain a loan or credit card. Others may ignore it and approve the account anyway. That's when you have to worry.