Credit Monitoring vs. Credit Freezing: What’s the Difference?

If you're worried about identity theft, you've probably heard these two pieces of advice:

1. “You should freeze your credit.”

2. “You should sign up for credit monitoring.”

But what’s the difference — and do you need both?

Here’s a quick, clear breakdown to help you decide.

Credit Freeze

A credit freeze prevents anyone from opening a new credit account in your name — even if they have your Social Security number and other personal info.

Pros:

• Stops new credit applications cold

• Free and lasts indefinitely

• You can unfreeze anytime when needed

Cons:

• Doesn’t alert you to fraud already happening

• Requires unfreezing if you apply for credit

Best For: Preventing new identity theft accounts.

Credit Monitoring

Credit monitoring keeps an eye on your credit reports and alerts you to changes — like new accounts, hard inquiries, or suspicious activity.

Pros:

• Sends alerts when something changes

• Some services include identity theft insurance

• Can cover all 3 bureaus, bank accounts, even dark web scans

Cons:

• Doesn’t stop fraud — it alerts you after something happens

• Free options exist, but full coverage often costs money

Best For: Early detection of fraud, especially on existing accounts.

So Which One Do You Need?

• If you're not planning to apply for credit anytime soon: Start with a credit freeze. It’s free and powerful.

• If you want extra visibility and peace of mind: Add credit monitoring, especially if your data has already been exposed in a breach. Following are some popular credit monitoring services (and we're in no way endorsing any):

  • Aura - https://www.aura.com/

  • IdentityForce - https://transunion.identityforce.com/

  • Identity Guard - https://www.identityguard.com/

  • IdentityIQ - https://www.identityiq.com/

  • LifeLock - https://lifelock.norton.com/

  • OmniWatch - https://www.omniwatch.com/

Each one of them carries pros and cons in terms of core and unique features. What you end up picking will depend on your needs and preferences.

Bonus Tip: Get Free Monitoring First

You don’t have to pay for monitoring right away. Here are a few reputable free options to start:

• Credit Karma (TransUnion & Equifax monitoring)

• Experian (basic free plan + premium options)

• Your bank or credit card may already offer alerts

• Do It Yourself (DIY) Option - A federal law, Fair and Accurate Credit Transactions Act of 2003 (FACTA), gives consumers free access to their credit reports every 12 months from each of the three major credit reporting agencies (Equifax, Experian, TransUnion) through the official website, https://www.annualcreditreport.com/

Our Final Thought:

A credit freeze is like locking your front door. Credit monitoring is like installing a motion sensor. Use one — or both — based on your needs.