 TITLE: How Do Fraud Alerts Affect Credit? CONTENT: How a Fraud Alert Can Impact Getting Credit\n-------------------------------------------\nWhile a fraud alert does not have any material effect on your credit report contents or your credit scores, it can cause delays in credit applications. Extra time typically is needed for the identity-verification steps lenders must take when they process applicants with fraud alerts.\nThis is most noticeable in situations when you're applying for instant credit approval online or at a retailer (seeking a store credit card or approval to buy furniture using store credit, for example). Few automated credit-check systems are equipped to handle the ID verification steps a fraud alert demands, and systems that aren't equipped may balk when they try to get a credit score for a customer who's set a fraud alert.\nBy law, creditors cannot refuse applications on the basis of a fraud alert. So if your credit meets the loan requirements, the retailer or credit issuer will ultimately approve your application, but the process won't be instant. You will likely need to deal with a company rep in person or on the phone so they can verify your identity.\nMonitoring your credit on a regular basis will help smooth the process when you're applying for credit. Experian's free credit monitoring service, for example, will help you understand your credit report and score, and alert you whenever there's a new inquiry. END