Consider yourself fortunate if you've never been the victim of a data breach or identity theft. But given the increasing number of breaches—and victims—in recent years, don't be surprised if your luck runs out at some point. If you’re considering taking action to help protect yourself, among the options are identity theft protection services and credit monitoring. So, what’s the difference? Well, it depends. When it comes to credit monitoring, you can take one of two approaches: doing it yourself or paying a company to do it for you. Identity theft protection can involve subscribing to a service.

If you choose the DIY (do-it-yourself) approach to credit monitoring, you have access to one free credit report per year from each of the three major credit reporting agencies (CRAs). If you stagger your requests—say, one every four months—you’re able to monitor your credit reports at no cost at different points over a 12-month period. Credit reports don’t include credit scores, but you may be able to obtain a free credit score through an existing credit card account. Identity theft protection services are typically offered through a monthly or annual subscription, and they may include credit file monitoring at one or more of the three CRAs and, possibly, a credit score from one or more CRA. In addition, such services can alert you when your personally identifiable information (PII), such as your Social Security number or email address, is used in ways that may not show up on your credit report. Identity theft protection services may also offer restoration services, to help victims resolve various identity theft issues. Here’s a quick overview of what can be monitored by each service. (Please note, services vary by provider.)

Some consumers concerned about monitoring their credit score use a credit monitoring service—which could be free or paid. Credit monitoring can be particularly helpful for people who have lower credit scores and are working on improving them. Credit monitoring can also be useful for those interested in a service that monitors changes to one or more of their credit reports, especially when there are credit inquiries related to applications for a new credit card account or loan. People also can use credit monitoring to signal when someone else applies for an account in their name, though credit monitoring may not scan for fraudulent credit card charges. When shopping around for a credit monitoring service, it's helpful to ask if the service tracks just one or all of your credit reports. Your credit reports, which collect all your credit data, are compiled by the three major CRAs, Experian, Equifax and TransUnion. These credit reports track your applications for new credit, your payment history and the amount of debt you have, among other things. Your three credit reports may be a little different, because not all of the financial institutions you do business with necessarily report back to all three of the major CRAs. Credit monitoring could alert you if a company checks your credit history or if a new credit card account or loan is opened in your name, among other things that directly affect your credit, according to the Federal Trade Commission (FTC). Breached companies often provide credit monitoring as a complimentary service to help the individual victims monitor their credit report. Free service plans range in what they cover. These credit monitoring plans can be offered for a year or two, and may provide credit scores and/or reports from one or all three major credit bureaus. Depending on who’s affected by the breach, the free service can cover you or you and your dependent minor children. So, it’s important to read the details before signing up for any service to know exactly what you are getting.

An identity theft protection service generally provides its customers with more than credit monitoring services. While a free credit monitoring service may point out that there is activity on your credit report, an identity theft protection service could monitor for suspicious or fraudulent activity involving your identity via bank accounts, criminal databases, and other places your Social Security number is used. Such services sometimes also help fix the problem, should your identity be stolen. An identity theft protection service may also alert consumers whose personal information is spotted on the dark web because an identity thief is selling it. You may find that these services are available to you through your bank or insurance company, often for an additional fee, or you can seek out an independent service. If your identity is stolen, it could take months or even years to unravel the mess it creates. You can take steps on your own to fix it, or you can sign up for an identity theft protection service that offers restoration help. If you become a victim of identity theft, there are many important steps to take, including filing a police report and placing an initial fraud alert on your credit by contacting one of the three main credit reporting agencies. A fraud alert tells potential lenders to reach out to you directly to verify the applicant’s identity before opening new accounts in your name, according to the FTC. After you place an initial fraud alert, the credit reporting company will explain your rights and how you can get a copy of your credit report. Placing an initial fraud alert entitles you to a free credit report from each of the three credit reporting companies.