Identity theft is more than just an inconvenience. Identity theft can put you right in the middle of a tangled financial mess. Once someone else has secured your most personal information they can turn that around and take out loans or credit cards in your name. That unauthorized spending you don’t even know about can turn into huge amounts of debt, accounts in default and it will impact your credit worthiness.

Your personal credit history is so much more than whether or not you can qualify for a loan. Your credit report contains very personal information about you from your address to your Social Security number to how good you are at handling debt. It’s the kind of information you don’t want to get into the wrong hands. You may be diligent about keeping your credit history private, but it’s not always up to you. When major retailers and credit card companies are hacked your credit information can be compromised. That is why you might want to consider an additional measure to protect your identity online. You might want to employ a credit monitoring service.

What Do Credit Monitoring Services Do?

A credit monitoring service watches your credit history and alerts you when something changes. It doesn’t prevent someone from investigating your credit, it just lets you know that it happened. There are no clear regulations about what a credit monitoring service has to do and there are no guarantees that using a service will prevent credit theft. But the best credit monitoring services keep a close eye on your credit report and your credit score and alert you to any changes.

Your credit report and your credit score are both snapshots of how you behave with money. They detail whether you pay your bills on time or if you are usually past due. They make note of any previous bankruptcies or lawsuits against you over debt. These reports and scores don’t answer any of the “whys” when it comes to financial problems. They also don’t let someone know how much money you have in the bank right now. The total credit score consists of an analysis of your payment history, the total amount of debt you have, how long you have had a credit history, what types of credit you have, and any new credit you might have.

Seven Best Credit Monitoring Services

In 2018 there were 444,602 cases of identity fraud reported in this country. Of those cases, credit card fraud was the most common. The worst states for identity theft were Georgia, Nevada, and California.

If you have decided you want to protect identity online, these are seven of the best credit monitoring services.

MyFICO

MyFICO is run by the company that invented the FICO credit score. They estimate that 90 percent of all lenders use a FICO score to make credit decisions. MyFICO offers three different levels of credit monitoring. The tiers offer different frequency of monitoring, but all are designed to alert you to any new inquiries that are made about your credit, any new accounts that have been opened, any address changes and any late payments that have been made. The company also offers identity theft insurance and promises to help customers that have been the victims of data breaches or identity theft. MyFICO requires a monthly recurring subscription. Pricing is based around which tier you select for the best credit monitoring services.

Experian

Experian says its credit monitoring service include daily scans of 600,000 pages of the dark web to keep an eye on identity theft. Experian also offers theft monitoring and alerts involving credit scores and reports from themselves, but also from Equifax and TransUnion. As one of the best credit monitoring services Experian also offers identity theft insurance and assistance recovering from identity theft. There is also an Experian Credit Lock that allows customers to block unauthorized access to their credit reports. It is a feature that can be turned on and off as needed. Experian offers two different levels of credit monitoring and has plans for individuals and for families.

Identity Defense

Identity Defense claims to be one of the best credit monitoring services because it uses a platform powered by Artificial Intelligence to scan billions of pieces of information looking for identity theft, including activity on the dark web. Identity Defense lets its customers know anytime their credit information is used, banking information changes or any credit checks have been run. This service also includes reimbursement for stolen funds as well as identity theft insurance, Identity Defense offers three different levels of protection that are all AI-powered and it is billed monthly.

Norton 360 with Lifelock

Now that Norton owns Lifelock, the anti-virus software and one of the best credit monitoring services come bundled together in one package. Norton monitors for identity threats and alerts customers through phone calls, text messages, email notifications and through its mobile funds. Norton 360 with Lifelock advertises that it employs Identity Restoration Experts to assist clients whose identities have been compromised. There is a stolen funds reimbursement component to Norton 360 with Lifelock. The individual cap to get that money back is dependent on which of the 3-tiers of pricing you buy.

Identity Guard

Identity Guard is another one of the best credit monitoring services that used Artificial Intelligence to scan for identity vulnerabilities. Identity Guard uses IBM’s Watson AI to constantly scan through billions of data points including points in the dark web. Identity Guard has three different types of monitoring protocols for individual or families. The basic tier is aggressive about identity threats. Another tier adds a social media component and the AI looks at your Facebook timeline to assess your online image and make suggestions for improvement. A third tier has a concentration in credit reporting. It provides each customer a monthly credit score update from TransUnion and an annual report that combines information from TransUnion, but also Experian and Equifax.

ID Shield

ID Shield is constantly monitoring credit information for indications of identity theft. But it is one of the best credit monitoring services because of its social media scanning aspect. ID Shield is not just monitoring your social media for identity theft indications. It is also looking for reputational risks in your social media posts. ID Shield reports that 70 percent of potential employers search for information about candidates on social media sites and that 57 percent find something that could disqualify the candidate. ID Shield also offers dark web monitoring, Social Security number tracking, information removal from data broker sites and assistance from Licensed Personal Investigators in cases of identity theft, fraud or other financial crimes. ID Shield offers both individual and family plans and pricing is determined by the number of credit reporting agencies cited in its reports.

IdentityForce

IdentityForce claims to use innovative identity theft protection technology to monitor its customers personal, financial and credit information. It has an early warning system that send possible identity threat alerts to smartphones, tablets and computer. IdentityForce tracks Social Security number activity as well as banking and credit card transactions. Its second level plan also provides 3 Bureau credit report update four times a year. IdentityForce even has a lost wallet service to assist with shutting down accounts when information may be compromised. Identity Force is available for individuals and families.

How Do These Services Monitor Credit?

A credit monitoring service will usually watch for inquiries to be made about your credit. That can potentially catch the activity that happens when someone tries to steal your identity to open up new credit cards or new bank accounts or even take out loans in your name.

Many credit monitoring services pay special attention to something knows as the “dark web”. That is a part of the internet that is known for taking measures to hide computer ID addresses and remain anonymous while conducting illegal activities. Compromised credit and debit information is traded on the dark web as are drugs, weapons and pornography.

In general the best credit monitoring services are looking for:

Hard Inquiries – When a credit application is submitted and checked it becomes a hard inquiry on your credit report.
New Accounts-Any new credit or new loan that is issued in your name is considered a new account.
Existing Account Changes-A record of your highest balance and payment history
New Public Records-This is the search for official actions like bankruptcies, tax liens filed or civil court decisions
Address Changes-This ensures that mail continues to arrive at the right place

Some of the best credit monitoring services also offer some bank account monitoring and even sex offender tracking.

How Does My Information Get Stolen?

Personal identifying information about you that isn’t locked down securely can be stolen. In many instances, all a person needs is a name and a Social Security number and the identity theft process can begin. Knowing someone else’s Social Security number opens up a lot of official doors.

Some of the common ways information gets stolen are:

Data Breach: When hackers break into someone’s computer system and steals names, addresses, and credit card numbers. This has happened to everyone from major credit card issuers to large department store chains.
Unsecured Browsing: It is very important to only visit secure sites online, especially when making a credit or debit card transaction. Look for a closed lock symbol next to the web address of your browser.
The Dark Web: This is the hidden internet underground where hackers go to anonymously sell personal information. The person who trolls around and grabs your information is not the one who will use it. It’s more profitable to sell the stolen information to someone else.
Malware: This is like a computer virus. This piece of software appears to be completely harmless but through it, hackers can steal information that is living on your computer or steal information by monitoring your keystrokes.
Credit Cards: Credit card information can be stolen by a thief that physically takes the card, by a skimmer that reads the card, by hacking into an online store, or by a data breach.

Many credit monitoring services will alert you to any changes of address on your accounts. That’s because scammers can file for a change of address for your mail, receive it themselves, and then begin to pretend to be you by filling out credit card applications or taking other information off of bills and statements that arrive.

How Do I Protect Myself from Identity Theft?

The best credit monitoring services will alert you when there is an information change. But you also have to take steps to protect yourself.

Take private information off of the internet. Don’t give a thief a head start
Protect your Social Security number. Before you give it out think about whether it is truly needed. Too often it is an unnecessary line on paperwork
Create safe passwords. The U.K. National Cyber Security Council discovered that 23.2 million people globally are using “123456” as a password. Don’t make it that easy to get into your private accounts. Mix in upper case letters, characters and symbols. And don’t use the same password for every account
Wipe electronics clean. Before you sell your laptop on the neighborhood yard sale site, be sure to wipe it completely clean of all of your personal data
Be aware of spammers on the phone. Do not freely give out your personal information to just anyone who calls you on the phone. It is especially important to remember that the IRS never initiates contact with a taxpayer over the telephone. The IRS conducts business exclusively through the U.S. Mail

What Do You Do if Your Identity is Stolen?

If your identity is stolen you need to take immediate action.

File a report with the Federal Trade Commission
Report the theft to your local police department
Notify the IRS
Add a fraud alert to your credit report
Freeze your credit
Add extra security to existing accounts
Review credit reports
Scan bank and credit card statements for unknown transactions
Open brand new accounts

Most of the best credit monitoring services have identity theft experts on staff who will assist you with these steps if you were one of their members when the identity theft occurred.

What’s a Good Credit Score?

Many credit reporting companies deliver a score that is a three-digit number somewhere between 300 and 850. On average, a credit score that is around 700 or above is considered good. A credit score of 800 or more is usually considered an excellent score.

Who Checks Credit Scores?

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Lenders check the credit scores of potential borrowers to assess how likely you’ll be to repay a loan and repay it on time. Banks brokering mortgages, car dealers and credit card companies are likely to check credit scores. A person with a lower score will be considered riskier than someone with a higher score. But the credit score may also determine more than whether or not the loan is approved. It can also be a factor in the amount of a down payment that is needed and how high the interest rate will be. Sometimes having a better credit score can save you hundreds if not thousands of dollars that would have been paid by someone with a lower score.

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Sometimes potential landlords will want to check your credit score before signing a lease. Wireless phone vendors may also check credit before entering into an agreement.

Conclusion

When your most personal information gets into the hands of the wrong people, it can turn into a case of identity theft. These thieves are looking for ways to use accounts you own or open new ones in your name to gain financially and stick you with the bill. Credit monitoring services are continually searching data and are waiting and watching for any kind of changes or inquiries in your personal credit history. For a monthly fee these agencies will be on the lookout for any new credit activity or any changes in your credit score that may alert them that someone has unauthorized access to your information.

Credit monitoring services work to catch the very first signs of trouble so they can be addressed before they snowball into a huge personal financial mess. And if you do become a victim of identity theft, these services have the resources to help you sort through what happened, battle back against it and begin the process of restoring your good name and your good credit.

What are the 7 Best Credit Monitoring Services?