Question

Why is placing a fraud alert an effective way of dealing with inaccuracies in a credit report? (1 point)
You will be contacted when someone tries to open a new account in your name.
You can only use your credit cards if you notify one of the credit reporting agencies.
No one can use your credit cards to make a purchase.
No one can share your credit report with a credit card or lending company.

Answer 1

Placing a fraud alert is effective because **you will be contacted when someone tries to open a new account in your name.** This alert alerts potential creditors to take extra steps to verify your identity before approving new credit, which can help prevent fraudulent accounts from being opened in your name.