4 Low-Cost, DIY Solutions to Monitoring Your Credit, Preventing ID Theft

Worried about identity theft and fraud? You’re not alone. According to the Federal Trade Commission, there were more than 1 million reports of identity theft in 2023 alone. While credit monitoring services can help, they often come with a monthly fee. Fortunately, there are free and low cost ways to keep tabs on your credit and protect your financial identity.

Freeze your credit reports

This step prevents new lenders from viewing your reports, and it should block thieves from opening new credit accounts in your name. Thanks to federal law, placing or lifting a freeze is now free for all consumers. You must request a freeze separately with each of the three major credit bureaus — Equifax, Experian and TransUnion.

Monitor your reports

Credit Karma will show you your Equifax and TransUnion reports on a weekly basis and alert you to changes in those reports. Discover and Mastercard cardholders can sign up for free monitoring of their Social Security numbers on the dark web.

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Set up alerts

A credit freeze or lock won't stop a crook from fiddling with your existing credit card or financial accounts. But you can often easily set up alerts to spot unusual activity in your accounts, such as large withdrawals or payments.

Get free help

If you become a victim of identity fraud, you can browse recovery steps at the Federal Trade Commission's IdentityTheft.gov site, generate a tailored remediation plan and print sample dispute letters. The Identity Theft Resource Center (www.idtheftcenter.org) posts guides to recovering from identity theft (including fixing problems that result from lost wallets and correcting misinformation on medical records), as well as links to state resources; you can also ask questions by phone, e-mail or online chat.

Credit Sesame offers its members (signing up is free) access to restoration specialists. Also check with your employer, bank or credit card issuers to see if they offer resolution assistance.

The bottom line

Protecting your credit and personal information doesn’t have to be complicated or expensive. By taking proactive steps — like freezing your credit, monitoring your accounts and using strong passwords — you can significantly reduce your risk of identity theft.

While no method is foolproof, staying vigilant and acting quickly if something seems suspicious can help safeguard your financial future.