 Putting
a fraud alert on your credit report
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 Dear
Dr. Don,
How do you go about getting a fraud alert on
your credit report that requests that lenders contact you prior
to approving any new credit application?
Also, what is the safest way to save money, with the
best interest rate? This would have to be accessible in case of
emergency. I hope that it's OK that I asked two questions. Thank
you.
-- Sue Secure
 Dear
Sue,
Putting a short-term fraud alert on your credit reports is straightforward.
Each of the credit bureaus has a credit fraud department. You can
find the contact
information on Bankrate.
Here's what Equifax says on its Web site about implementing
a fraud alert:
You may place an initial 90-day alert by calling
any one of the three nationwide credit reporting companies. You
may place an extended seven-year alert by writing to one of the
nationwide credit reporting companies and providing an Identity
Theft Report as well as a day and evening telephone number. The
requirements for an Identity Theft Report are listed on the FTC's
Web site at www.ftc.gov. The
extended alert removes your name from pre-screened offers of credit
for five years. You will receive a confirmation when an alert
is added to your credit file.
The credit bureaus don't recommend consumers instituting
fraud alerts in an attempt to protect themselves from identity theft,
but it's a reasonable precaution until all states provide consumers
with the right to put a security freeze on their credit reports.
At this writing, 11 states allow residents to place a security freeze
on their credit reports, while six other states limit security freezes
to residents who are victims of identity theft. However, in four
of the 11 states, and two of the six limiting freezes, the law has
not yet taken effect.
Opting out of receiving prescreened credit card offers is another
smart step in preventing identity theft. Call: (888) 5-OPT-OUT,
or (888) 567-8688.
As to your bonus question, in general your emergency
fund should be invested in short-term liquid investments. Insured
bank deposits such as money market accounts, or MMAs, are a good
choice, but also consider money market mutual funds, or MMMFs, even
though they don't carry deposit insurance. Bankrate lets you shop
rates for money
market accounts and money
market mutual funds. A Bankrate feature, "Building
an emergency fund," has more on sizing and investing an
emergency fund.
To ask a question of Dr. Don, go to the "Ask
the Experts" page, and select one of these topics: "financing
a home," "saving & investing" or "money."
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