Explain why someone might want to put a ""red flag"" on their own credit report.

Credit Report- This report shows a summary of a person's financial transactions. For example, when you order online through your credit card, this transaction is reflected into the credit report.

Red Flags Rule – This is a periodic assessment that institutions commit in order to ensure the safety of financial transactions of people. It also prevents identity theft.

Normally, the institution will put a red flag on your credit report if they suspect a fraudulent activity. However, as a consumer, if you suspect that somebody is using your account then you may put a red flag on your credit report. Doing this will not only prevent identity theft but will also block fake transactions.

Tundexi Tundexi · Answer 2 · 2022-04-01T11:51:33+02:00

A person might want to put a red flag on their own credit report to notify that a fraudulent activity have occurred on his account or report.

What is a red flag?

A red flag refers to an indicator that suggests that there is a potential threat with a company's stock, financial statements or news reports etc.

However, a red flag can be placed on an account by an account owner or report to indicate that a fraudulent activity have occurred on his account or report.