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Credit Monitoring
What it is
Monitors your credit files for changes or suspicious activity
Offers email or text alerts when hard credit inquiries occur or new lines of credit are opened
Why use it
Often offered free of charge after major breaches when social security numbers (SSNs) have been exposed
Does not restrict access to your credit files
What you need to know
Is reactive—you will be notified only after unauthorized activity has occurred
Requires you to entrust another company with your SSNs
Monitors credit only
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Fraud Alerts
What it is
Places a cautionary note on your credit reports, alerting credit lenders or service providers that you may have been a victim of identity theft
Requires that changes to your credit be run by you first
Why use it
Free of charge
Easy to set up (You can submit a request to one major credit bureau, and all will be notified.)
What you need to know
Does not restrict access to your credit files
Verification process not clearly defined by law
Verification could potentially cause delays in credit changes
Does not protect accounts that are already open
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Credit Freezes
What it is
No one—including you—can open a new line of credit
Restricts your access to credit (You would have to unfreeze your credit files first with a personal identification number (PIN).)
Why use it
Preventive measured
No changes can be made to a credit file without the PIN
What you need to know
Separate requests needed for each credit bureau
Some states charge a fee
Does not restrict access to accounts already open (Fraudulent activity can still occur in those accounts.)
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Identity Theft Protection Services
What it is
Offers all-in-one suite of tools and resources, including real-time credit monitoring at all three major bureaus, customized account alerts (for more than just credit), and a 24/7 call center
Why use it
Combines the benefits of other tools (e.g., credit monitoring and alerts) in one place
Offers 24/7 support
Some monitor accounts outside of credit files
What you need to know
Must entrust a third party with your SSN
Can be costly
Quality varies by company (Before subscribing to any service, perform due diligence.)
Most will not help with identity theft that occurred prior to membership
