With the many choices in credit monitoring and identity theft protection available on the market, it’s not always clear how to differentiate between the various offerings and what’s right for you. This article looks at the differences between credit monitoring, fraud alerts and credit freeze services and what each one does.
Credit Monitoring
A common protection that is offered by banks, credit card companies and the credit bureaus themselves are credit monitoring services. A credit monitoring service will notify you if any unusual or suspicious activity appears on your credit report. While it is good practice to periodically review your credit report for any inaccuracies, credit monitoring services do not actually stop identity theft, but alert you to any events that have happened after the fact.
Fraud Alerts
A fraud alert acts to stop identity theft before it happens.
- Your credit file gets flagged with the three major credit bureaus that alert lenders that they must verify your identity before granting an application for new or additional credit.
- When an application is submitted for new credit, the lender will typically call you at the number placed with your credit report and ask you a series of questions to verify your identity.
- Services like TrustedID and LifeLock place fraud alerts on your behalf with the three major credit bureaus and automatically renews them every 90 days to ensure that you are protected at all times.
Credit Freeze
A credit freeze adds the maximum level of protection to your credit.
- A credit freeze literally locks its accessibility from lenders, who automatically pull your report when reviewing your loan or credit application.
- Once this freeze is in place, the major credit bureaus cannot release your credit report to third parties without your permission. Since creditors won’t grant new credit until they can see your credit report, identity thieves can’t open new accounts in your name.
- If you are applying for a new loan or application your credit must first be unlocked, and the process of locking and unlocking your credit can take time and official requests sent via certified mail to each of the three major credit bureaus – Experian, Equifax and Transunion.
- TrustedID makes the locking and unlocking of your credit easy for you by offering CreditLock, an option that is available with your IDFreeze subscription. TrustedID’s On-Call Protection Specialists contact the three major credit bureaus on your behalf and handle all the work, making the locking and unlocking of your credit easy for you.
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{ 3 comments… read them below or add one }
It is possible to place like a credit freeze or alerts with the credit bureaus at no cost?
Such as setting certain parameters in terms of who can or can’t view your report, or the dollar range of purchases you make.
Tom – Yes you can do it yourself, but apparently not for free. Here is how Equifax does it…not exactly a user friendly process!
To request a security freeze you must write to us. Your request must be sent via certified mail and should include the following information:
Name
Address
Date of Birth
Social Security Number
Proof of current address such as a current utility bill
Payment of applicable fees to request a security freeze of your credit file ( State Freeze Requirements and Fees to determine fees for your state). We accept personal checks, American Express, Mastercard, VISA, and Discover Cards for payment of fees. If you are paying by credit card, please include the following information:
Name of the person as it appears on the credit card
Type of credit card (American Express, Mastercard, VISA, or Discover Card)
Complete account number
Expiration data (month and year)
For American Express – 4 digit Card Identification Number (on front of card above the account number)
For Mastercard, VISA, or Discover Card – 3 digit Card Identification Number (on back of card at the end of the account number. Please do not send cash through the mail.
If you are an identity theft victim and are requesting a security freeze you must also include a copy of a police report, Identity Theft report, or other government law enforcement agency report, such as a DMV report.
Please send your request information via certified mail to the address below.
Equifax Security Freeze
P.O. Box 105788
Atlanta, Georgia 30348
Once we receive your security freeze request information and place a security freeze on your Equifax credit file we will send you via US mail a confirmation letter that contains a 10 digit security freeze confirmation number. You will need to provide us your security freeze confirmation number to request temporary lifts of your security freeze or permanent removal of your security freeze. Please store this confirmation letter in a safe place to prevent delays when requesting a temporary lift or removal of your security freeze.
Wow, awesome thank you, I will definitely look into further, as I will be getting my credit report this month.