Built-In Identity Theft Protection for Credit Cards

With the growing number of identity theft cases, it's tough not to worry about whether it could happen to you. If you've recently opened up a new credit card account - be it a major credit card or a store charge card - you're probably all too familiar with the identity theft protection subscription services that the issuers shamelessly strive to sell you.

If you're like me, you just want to make the call, activate your new card and get it over with as quickly as possible. With the busy lives we lead, it really doesn't make sense to sit on the phone for five or ten minutes simply trying to activate a credit card...especially when half of that time is spent arguing with the customer service specialist who endeavors to sway you toward the "only $11.95 a month" credit monitoring and identity theft protection package, with as many free credit reports as you want. Oh boy!

Now don't get me wrong here. Identity theft is a rapidly growing problem across the globe and it shouldn't be taken lightly. In some cases, credit monitoring services and identity theft insurance may be great assets to protecting your credit and your identity. When prompted by creditors, consumers should consider the option of adding such a service, but by no means should they feel pressured or forced into accepting these monthly subscription services.

What credit card salespeople and customer service reps fail to mention is that we as consumers and as credit card holders already possess a form of identity theft protection.

According to the Fair Credit Reporting Act, all consumers are entitled to one free credit report annually from each of the three credit bureaus, Equifax, Experian and TransUnion. Simply call 1-877-322-8228 or visit www.annualcreditreport.com to get a free copy of your credit report.

For a comprehensive credit protection plan, request a free credit report from one of the bureaus every four months so you can keep yourself in the know when it comes to your credit history and the possibility that identity theft may be happening to you.

Credit Monitoring Services

While the subscription costs tend to add up over time, the value of a credit monitoring service shouldn't be completely discounted. These services often provide weekly, if not daily, reports of credit activity. This can be quite convenient if an identity thief does happen to strike, considering most people go months on end before they realize they've been had.

If you do opt for a credit monitoring service of an identity theft protection subscription plan, read all the fine print and compare and contrast all your options. Some services may only request information from one credit bureau, while others that do work with all three credit bureaus may charge significantly higher subscription fees. Besides peace of mind, these services don't offer a whole lot that a consumer can't do by him or herself for free.

Identity Theft Insurance

Although losses due to identity theft are sometimes covered under typical homeowners insurance, identity theft insurance is also available to reimburse victims of identity theft for some of their losses. These losses may include everything from phone calls to loss of wages, notary fees, and sometimes even attorney fees if arranged in advance.

While identity theft insurance does provide some financial peace of mind, it does not repaid a consumer's damaged credit and it surely does not erase a criminal record that may be associated with a case of identity theft. In fact, this insurance may not even pay the total amount lost in wages as a consumer struggles to rebuild his or her credit and reassume identity.

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Consumers are not responsible to foot the bill for the identity thieves' purchases when it's a matter of a stolen credit card or debit card number. Consumers are also not liable for debt racked up on new accounts that thieves opened, though this kind of identity theft is much tougher to clean up and reconcile.

If you want the peace of mind and are willing to pay for it, a credit monitoring service or identity theft insurance might do the trick. Just realize that they services do not clean up the headaches or heartaches associated with identity theft. Read all the fine print, ask as many questions as come to mind and compare several offers.

For the best free identity theft protection, request your credit report three times a year at four-month intervals, once from each of the three credit bureaus. Shred all personal, legal and financial documents that you intend to discard. Avoid using your debit card for Internet purchases and be especially vigilant with all identifying information such as your social security number, driver's license number, birth date and other data.