What are some services or tools that I might consider in conjunction with credit monitoring?

Let’s first review what credit monitoring is. With credit monitoring, the service will monitor and guard your credit file with one or all three of the major credit reporting bureaus in the US. Should any changes or additional items be added to your credit report, the credit monitoring service will send you a notification within 24 hours. This gives you a fast an effective way of spotting any errors or evidence of fraud with your credit report right away. In conjunction with credit monitoring, other tools that you might want to consider include junk mailing removal, credit file fraud alert, credit freeze, and identity theft protection services.

Could you tell me more about junk mailing list removal and why I should strongly consider it?

Many credit card or loan companies request general information from credit reporting bureaus about which customers may qualify for their services and credit accounts with what is known as soft credit inquiries. They will then send out “pre-approved” credit card or loan offers to them in the mail. Thes soft credit inquiries do not show up on a person’s credit reports, but the problem with these junk offer mailings is that to the consumer receiving them they often do more harm than good. It is rare for the consumer to take advantage of these pre-approved credit offers. These junk mailings, however, do constitute a major source of identity theft where the identity criminal steals the mail and applies for these credit cards, credit lines, and loans in the victim’s name.

Many identity protection experts will advise you that you should have yourself removed from these junk mailings. In order to do that, you will have to send notifications to each of the three major credit bureaus that you do not wish to be included as part of any soft credit inquiries by credit card and loan companies. Each credit reporting agency has procedures that differ from the others so that you will need to check with TransUnion, Experian, and Equifax about how to remove yourself from these junk mailings. Some identity protection services will notify the credit bureaus for you as part of their identity protection solutions.

What does placing a fraud alert on my credit file mean?

When you place a fraud alert on your credit file with one of the credit reporting agencies, any requests for a copy for your credit report as part of a hard credit inquiry stemming from a credit card or loan application will have to be approved by you. Fraud alerts are designed to be used by those who have evidence that their identity may have been compromised so that they can stop attempts at identity theft immediately. Placing a fraud alert requires sending a notification to the credit agency that you wish to do so. Identity protection services routinely place fraud alerts on the credit files of their customer with all three credit bureaus as a means of blocking identity theft even when no evidence of anything has occurred, although the legality of these companies doing these fraud alerts not for their intended use has come into question lately.

What is a credit freeze and what are some advantages and disadvantages for using a credit freeze?

With a credit freeze, the consumer completely freezes his or her credit file, so that no request for credit report copies or hard credit inquiries will be granted. In effect, it will no longer be possible to apply for any credit cards or loans as long as the credit freeze is in effect. If consumers wish to apply for credit later on, they will first have to go through the process to unfreeze their credit file. The advantage of credit freezes is that your credit file is protected against any unauthorized use and identity thieves cashing in on knowing your personal information. The disadvantage is that if you do with to apply for any credit, you will have to unfreeze your credit file first and that process could take time and delay any hope for a fast and expeditious credit card or loan application.

What are identity theft protection services and what do they encompass?

Identity theft protection services are usually multi faceted in how they operate. Usually identity protection services will monitor your credit files and notify you of any changes. These services will usually also place fraud alerts on your credit files so that all request for credit report copies will have to be approved by you. Some identity protection services will offer you access to your credit report so that you can check for any errors and correct/dispute them if necessary.

Identity protection services will usually eliminated junk credit offers mailings to you, monitor black market channels to ensure that your information is not being sold, as well as notify you of any large scale data compromises in which your personal information may have been at risk. Other identity theft protection services will also monitor your banking, medical, and other records that may not be included in your credit report. Almost all services will provide monetary guarantees should you become a victim of identity theft to cover damages and costs for recover, as well as work with you to recover and restore your identity.