Money-saving Tips for Back-to-School Shopping

Though it seems like summer has just started, it is not too soon to begin thinking about back-to-school shopping.  Beginning this task early will ensure that you are able to get organized, take advantage of coupons and sales and will allow you to spread out your spending through the summer. We have detailed some fantastic money-saving tips to help you spend less and get more for your money.   

Get Organized

The number one problem with overspending on school supplies is lack of organization.  Have you ever gone to the grocery store on an empty stomach only to come home with more than you intended?  It works the same with back-to-school shopping.  Before you head to the store, take a detailed inventory of any items from last year that will work for this year.  Have your kids sort through their clothes and shoes and determine the essentials needed to begin the year.  

Make a List

Now that you are organized, make a list and stick to it!  Most schools offer detailed supply lists of required items.  In addition to these supplies, your child will need a good backpack, lunch box and tennis shoes.  Check your inventory of items from step one and cross off anything that you already own.  Remember that the school supply list is a starting point for your child.  Depending on his age and classes, he might require a graphing calculator, PE clothing, or a specialty item for an elective class.  Add all of these items to your list.

Determine Your Budget

Back-to-school shopping can be quite expensive, so it is necessary to determine your budget before you purchase even one pencil.  Prioritize your list and estimate the cost of all of the supplies.  If the cost of the supplies is greater than your budget, you will be able to purchase top-priority items first.  Often supply lists include supplies used throughout the entire school year.  Since some of them will be used later in the year, you will be able to delay those purchases until necessary.

Shop the Sales

Beginning as early as July, major retailers begin their back-to-school sales.  In fact, some of the best deals happen when most people have not even begun to think about school shopping.  Start planning early and watch the weekly ads in your area.  You will be amazed at how much you will be able to save.

Combine Coupons with Sales

One of the great things about coupons is that they are valid even during a store sale.  Historically, manufacturers produce coupons for common school supplies throughout the summer.  Print them off or cut them from your local newspaper and then hang on to them.  When you locate a great sale, use your coupons at the same time.  This can save you hundreds of dollars, depending on what supplies are required for your child.  

Take Advantage of Tax-Free Weekend

Many states offer a tax-free weekend or tax-free shopping days specifically for back-to-school shopping.  The special often includes school supplies like pens, pencils and paper and likely also includes clothes.  Additionally, most retailers will schedule store sales, coupons and other incentives during this tax-free time.  If your state allows, this is a great time to purchase big-ticket items like computers and textbooks. Let’s be honest… most people do not want to think about back-to-school shopping during summer.  However, those months will go by much faster than you think.  Start early and plan your schedule for the summer.  You might even be done when others are just starting!

dislaimer: this post may have affiliate links. By clicking on them and purchasing through them, I may receive a small commission. These small purchases help me to continue to keep writing content and creating at Holy Craft. Thank you!

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How to shop ThredUp like a pro and save thousands on a new wardrobe

I don't think most people would be able to tell, but I buy more than 90% of my clothes used. I love shopping and buying second hand and lately, if I'm searching for an item to add to my wardrobe {last week it was a military jacket}, I head to ThredUP first. If you don't know what ThredUP is, it's an on-line thrift store where you can buy nearly new clothing for next to nothing. There are thousands of items in stock and you are bound to find something that you love.That is, if you can get past how overwhelming it all is to find what you are looking for. I've talked to a few friends about how much I love ThredUP and they say that they want to try it, but they get frustrated with how much selection there is. It's hard to narrow it all down and find what they really want. So, I created this post and am including a link code so that you can place your first $10 order and get $10 off making it FREE! I love free! 

Use this link to order and you can save $10 on your $10 purchase.

I know that I am closing in on my 40's but I still love to start looking for clothes in the juniors department. It's the first department I hit when I go to a store at the mall, I might as well start there when I shop on-line. You will have to scroll all the way to the bottom of the home page on Thred Up to find juniors written at the very bottom.

I find that my money goes further in the Juniors department too. I can find tank tops for summer for around $5 and dresses are usually under $10. Your $10 credit goes a LONG way in the juniors department. 

In both the Women's and the Juniors, I always start looking in the New Arrivals. Refresh that often because new items are added at an alarming rate! You can narrow it down to something specific {say dresses} if you want and then select your size. 

Another selection you want to UNCHECK is in the drop down size menu. It checks the box "include equivalents" automatically, but I know the size I wear and if I'm looking for, say shorts or pants, I need a specific size.  I don't want to see some cute shorts in a size I know I won't be able to fit into.

Now here is where it gets good.  I always select the brand. ALWAYS!

I pretty much love everything I find at Anthropologie and Madewell. Both of those stores have several brands that they carry but the clothes all have the same type of style. In juniors I love the BP brand.

This little click on brand narrows your search down in an enormous way giving you similar style items that are still affordable but it takes you far less time to scroll through all the great selections.

If I see something I like or that I think I might like, I always add it to my cart. I don't want to be searching some shirt down later if I change my mind. It's easier to sort through your cart at the end than it is to find something you didn't save earlier. 

When an item is in your cart you can click on it and check out the details closer. I always look the items over when I'm done shopping and delete the ones I don't want or decided against. This also gives me an easy idea of how much I spent since I can see the total in my cart.

So here is the shortened condensed version for easy shopping

Start in juniors {it's cheaper!} and move on to Women'sAlways refresh new arrivalsIf you can, narrow down your search to a specific item {like dresses or tops}Select your sizeUncheck "include equivalents"Select brands you loveAdd your favorites to your cart

Hopefully this makes shopping at ThredUP that much easier. It really is my new favorite on-line shopping store but I can see how it can be overwhelming. Narrow it down as much as you can and follow this tips and you will be on your way to an inexpensive new wardrobe in no time! Stop getting overwhelmed and start saving!Don't forget, new users can use this link for $10 off their first $10 purchase. dislaimer: this post may have affiliate links. By clicking on them and purchasing through them, I may receive a small commission. These small purchases help me to continue to keep writing content and creating at Holy Craft. Thank you!

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25 free or inexpensive things you can give your mom on Mother's Day

Mother's Day is just around the corner. As a mom of three kids that are growing up far too fast, I thought that I would make a list of the top 25 free or inexpensive gifts that you can give your mom on Mother's Day. I promise you, these are all under $10 so they will fit into any budget.  

Honestly, what I had in mind when I wrote this are things that I would appreciate getting from my own kids. Long gone are the days when their teachers helped them create a sweet card or created me an art project in class. My kids are on their own now. This is the perfect list for a teenager or a young twenty something to keep in mind, so make sure you share it with them.

1. Frame a photo of you and your mom together. You can find cheap frames at the dollar store or Goodwill.2. Help your mom with a project. Set aside time to help her do something she's always wanted to do. My mom isn't the most computer savvy, so I helped her make her first photo book. Then I watched her do her second. She's since made several on her own and appreciated the hands on tutorial. 3. Create a photo book. Chatbooks are super easy and only cost $8. You are limited by the amount of pages, so it's best to keep it to a theme {grandkids, recent trip, etc...}.4. Create a gift basket with your mom's favorite candy. You don't need to go all out, just pick a few items you know she loves. Everything looks better in a basket or tied up in a cello bag.5. Spend the day with her. Let your mom pick the destination and then go along for the ride. Even if it might not be your choice for the day, do your best to act like it is.6. Cut some flowers and make an arrangement. You don't need to buy an expensive bouquet {sometimes the best flowers are those you find on the side of the road}, simply put them in a ball jar or take grocery store flowers and rewrap them in brown kraft paper.

source: wedding party

7. Your local big box store often has great plants. Simply find a pot at a thrift shop and you have a great inexpensive house plant.8. There are so many creative people out there creating free printables. Simply print and frame them at home for a handmade gift. You can find lots of free printables on my printable Pinterest board.9. If your mom is crafty, consider putting together a basket with some goodies to DIY from the craft store. Don't forget to use your 50% off coupon!10. Moms love personalized and handmade gifts. These hand stamped necklaces and bracelets cost under $5 to make and can be done in under 20  minutes. 11. Stick to a color palate or theme. For under $10 you can fill a box of sunshine like this from HappyMoneySaver.com. 

12. Give your mom her favorite drink. It could be tea or coffee or maybe it's wine, regardless, just knowing that you know what her favorite is will be treasured.

13. Shop your mom's favorite store. Most likely you will find something in your budget {or get inspiration for something that is in your budget at another store} that she will love.

14. Write a note. Write down your favorite memory with your mom or write a line or two about what you appreciate about her. It doesn't take much and is sure to be appreciated.

15. Create a play list. If your mom is a music lover, she might enjoy the hand selected tunes you have picked for her.

16. Wash and clean her car for her. It won't cost you anything if you do it yourself and the time you spend on it will be greatly appreciated.

17. Make a journal or a notebook for her. You can use scrapbook paper or if you sew, you could cover an existing notebook. Both will cost you less than $5.

18. Make her a dinner. I cook nearly every day of the year so it's nice to have one day when I'm not expected to cook. It doesn't have to be anything fancy, but cooking for your mom would be a really sweet gesture.

19. Look around for free events in your area that you think she would like and offer to take her to one. There might be a concert in the park coming up in a few weeks, planning that with her and making the time to go would make her beyond happy.

20. Take on a project that your mom hates. Heck, you may hate it too, but doing it will make her forever grateful. 

21. Do something active together. Go on a bike ride our scout out a local hike.

22. Rent a movie and pop some popcorn and enjoy an evening together. Make sure it's her choice, not yours!

23. Set up a tripod and snap a family picture. You don't need to hire a photographer, just taking the time to be in a picture together that she can share with others will have her beaming. 

24. Visit a local attraction or museum together. Many libraries offer free admission to local museums, all you have to do is check out a pass. Some local attractions are free. Set aside the time to go with your mom.

25. Call her. Like on the phone with your voice. You may not live close enough to your mom to spend the day with her. Simply calling to let her know that you remembered is priceless.

source: Pavan Trikutam

So there you have it. 25 free or inexpensive ways to show your mom that you care this Mother's Day. Let me know if I missed any. I would love to hear from you.dislaimer: this post may have affiliate links. By clicking on them and purchasing through them, I may receive a small commission. These small purchases help me to continue to keep writing content and creating at Holy Craft. Thank you!

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19 Things You Should Always Buy at the Dollar Store or else you will pay too much

About four years ago, I wrote a post that took me about 20 minutes. It is shocking to me, because that post went viral and still remains my top post week after week on my blog. It seemed to strike a chord with my readers. I once had someone ask me why I wrote that post. He said why does it matter what you should buy at the dollar store? It's only a buck. Who cares? 

You all seem to care! It seems like even though it's only a buck, we don't want to waste our money on things that break, are sub par or just don't work. Over the years I've become a sort of dollar store expert. People are constantly asking me if the dollar store has this or that and they want my opinion.

It's been a few years since that first post, but I still frequently shop at our local dollar store.  I can't tell you how many times I am shopping the aisles at the dollar store and hear people say, man, I didn't know they had that. I should have looked here first! I keep a running list of those things that I know I can find at the dollar store that will help me from wishing I hadn't spent more on them somewhere else and now, I've complied them for you!

Through the years, I have found these 19 things to be things that you should always buy at the dollar store. If you pick up these items anywhere else you will be paying too much.

1. Spray bottles

Sure, you can find spray bottles at all your big box retail stores, but can you find them for a dollar? I use mine to store my own cleaning products {vinegar and a few drops of essential oils is one of my favorite}, my own Febreeze {half fabric softener mixed with half water}, and when my kids were little, they used to use them as squirt guns. 

2. Glow Sticks

You can find any kind of glow stick that you need at the dollar store. I know some friends who take them camping with them and put them on their kids so they don't lose them at night. I have also heard of some fun tag games that you can play with glow sticks to. If you have kids, glow sticks are fun for so many things.

3. Bubbles

It's starting to warm up a bit and I know kids of all ages love bubbles. At other retails stores, you will be paying upwards of $5 for a bottle of bubbles this size. These are great for refilling bubble blowers {this one is our favorite} and letting your kids use a squirt bottle to pop the bubbles. My youngest kid is 10 and I still stock up on bubbles.

4. Foam Core

I use foam core as a backdrop for taking pictures a lot of times. I also use it to mount pictures. You can't find it cheaper any where else if you are ever in the need for foam core.

5. Posterboard

I have three kids. They need posterboard for a lot of their projects. I always buy it at the dollar store. If you can see, it's also less than a dollar, so bonus!

6. Party Supplies

I don't care what kind of party you are having, you should always ALWAYS stop at the dollar store first to see if they have any party supplies that fit your theme. I usually can't get everything I need for a party at the dollar store, but I can get a good start on it, and I pay way less!

7. Cards

Have you priced out cards lately? It seems like an average card from Hallmark will cost you $4. You can get 8 cards at the dollar store for that price! The pickings are sometimes slim, and you will have to go through some real duds first, but it's a good place to start if you need a card for any occasion. Sometimes around holidays they bring in better cards than normal. I've found some really nice handmade looking cards for mother's day. It's worth checking here first.

8. Fabric Softener

I've only recently started using fabric softener. My mom had skin sensitivities to scented soaps so when I was growing up we didn't use it, and then when the kids were little, I used cloth diapers and I was always told that the fabric softener would break down the waterproof barrier in the diaper and no one wants that, so long story short, we have only just come around. I had no idea how much I actually liked it when my clothes smelled clean. I think the Awesome brand at the dollar store works great. I priced it out at Target and was shocked how much they charge for fabric softener. 

9. Rubber Gloves

 I use rubber gloves to wash the dishes with. These are a great deal and they work well.

10. Foil Pans

These foil pans are great if you are bringing a meal to church or to a friend who just had surgery or if you want to freeze a meal like lasagna. They come in all sizes {some are 2 for $1} and are way cheaper than buying foil pans any where else.

11. Pretzels {and other snacks}

I don't buy a lot of food at the dollar store {don't get me started on why you shouldn't buy potted meat}, but there are a few items that are a great deal.  Pretzels seem to be a lunch box staple at our house. They are far cheaper at the dollar store for the same size {or bigger} bag. I stock up on marshmallow fluff if I see it because this dip is delicious and must be made weekly. My husband also really likes the cheddar popcorn. 

12. Hand Soap

I buy these big refill bottles {because the smaller ones aren't a great deal} to refill my soap bottles in all the bathrooms at home. I also use it when I'm making my own foaming hand soap.

13. Makeup

I'm not picky about my makeup. In fact, I feel like some of the makeup I buy at the dollar store is better than the makeup I've spent much much more on at the department stores {you know, way back in my single girl days}. This liquid eyeliner is my favorite. I also use the powder and bronzer. 

14. Balloons

Helium Mylar balloons are crazy expensive at the party store. Always get them at the dollar store. You can usually find balloons for every occasion.

15. Blank T-shirts

I don't know about your dollar store, but ours has blank t-shirts. They are always a mess and you can expect to have to sort through them looking for the size you need, but if you only need one or two shirts to use for a project, this is the place to go! These blank t-shirts are great for tie dye projects or if you want to put heat transfer vinyl on them for a custom project.

16. Night Light Bulbs

For a lot of years my kids slept with a night light. They would have them on all night {duh}, and we would even travel with them. Not only have I found that they are hard to find at other stores, they are also really expensive. So if you are looking for a night light bulb, the dollar store is your place.

17. Kids Activities

I'm always surprised that I can find name brand current kids activity kits at the dollar store. These kits are great to stock up on for stuffing stockings or Easter baskets or if you are traveling. 

18. Decorative Rocks

Forgive me if this is too specific for you, but if you ever find yourself in need of decorative rocks for a project, the dollar store is your go to place. I recently used them for a centerpiece that I made. I saw the same rocks at a well known craft store for way more.

19. Felt Protectors

This is one of those products that I bought at the store and then could have smacked myself for buying them for more than five times as much. We use felt protectors on our chairs and table in our kitchen because we have hardwood floors. These are cheap. Way cheaper than you will find any where else.

So there you have it. I know this list isn't complete, which is why I want to hear from you.

I loved reading every single comment on the What Not To Buy at the Dollar Store posts and finding out what I should try and what I should avoid. I know you guys know your stuff. So share with me. What do you find cheaper at the dollar store than you can find anywhere else? 

dislaimer: this post may have affiliate links. By clicking on them and purchasing through them, I may receive a small commission. These small purchases help me to continue to keep writing content and creating at Holy Craft. Thank you!

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20 Things Frugal People Do some tips and tricks that will save you money!

I'm cheap. You can call me frugal, thrifty or a good shopper.  Perhaps even a mindful consumer. If I had to pick a word to describe my spending style, I think I would like to be considered resourceful. According to the dictionary, frugal means sparing or economical with regard to money or food. I suppose that's a good word to describe how we chose to live.  And it's one most people can relate to.

I really like to live well on less.  That's sort of my motto.  We started out married with a newborn at the ripe old age of 20 and 21, part of being frugal came out of necessity. Next year, our oldest son is starting college, and well, we are going to be going back to working with a pretty bare bones budget. However, through the years, we have found out just how far we can push our budget without really feeling like we are missing out on anything.  We really do live pretty darn well on less. 

I've written a list of 20 things that frugal people do every day to save them money.

1. They don't buy souvenirs

We like to travel. While that isn't necessarily frugal, we think that spending money on life experiences, trumps being cheap. We see value in the experience, not in the cheap crap that you buy at the gift shop walking out. So no, my kids don't have a stuffed panda from the San Diego Zoo, or mouse ears from Disneyland, but that doesn't mean that they don't still have memories from those trips.  

2. They don't eat out often

The majority of our meals are eaten at home. I pack lunches for our whole family during the day, and at night we share a meal together. Eating out just isn't cost effective for our family now that we have what amounts to four adults {my daughter is 13, my son is 17} and one child.  Even a cheap dinner with a coupon at a fast food joint will set us back easily twenty five bucks, and it's inevitable that the kids will still be hungry.

3. They shop sales and combine coupons

I rarely buy something if it isn't on sale. It's even better though if I can find something on sale and with a coupon! That's when I stock up. If my kids ask for something that's not on sale at the grocery store, they know it's almost always a no. 

4. They price match

Most stores remain competitive by price matching. This requires a little bit of research, but with the ease of smart phones, you can usually do your research in the aisle of the store. Price matching saves me not only time, but money.

5. They combine errands

Gas prices are dropping {hallelujah!} but it's still important to combine your errands. I try to hit all the stores in one area at the same time not only to save on gas, but also to save on my time. My husband always tells me that my time is worth something. 

6. They shop around

I am not loyal to one store or another. I do have some favorite stores, but if someone asked where I did the majority of my shopping I couldn't narrow it down to only one store. In a typical week, I will go to three different grocery stores hunting down their loss leaders from the ads. The same goes for big ticket items. I always shop around before I make a purchase.

7. They know their limit

Early on in our marriage, my husband and I said that if we spent more than $50 on any item, we would talk to the other person before buying that item. That's when we really didn't know each other's spending style. I rarely purchase anything over $20 without seriously questioning my purchase and my husband just rarely purchases anything.  There is usually a dollar limit in my head that I have associated with most purchases.  

8. They do the math

I'm constantly doing math when I am buying something. Is it cheaper to buy the bigger size toothpaste or the smaller one or is the cereal by ounce cheaper at the grocery store or at Costco. I recently got a new iPhone and while the cost out of pocket is dang on expensive, the math worked out over the life of the phone and with our plan to save us money in the end. {you can read this post on saving money on cell phones here}, so we purchased the phone and found our own plan.  

9. They cut out cable

It drives my husband batty when I say that we don't have cable. We actually have very basic cable with only network channels. We also have Netflix streaming and a Tivo. You can read more about it here.  On average, we pay less than $25 for our entertainment budget {including movies} each month.

10. They have a full pantry and freezer

I buy in bulk when I find a good deal. I freeze bread and lunch meat and if I find a sale on meat, I stock up. Because I cook most of our meals, I like to have food on hand so I'm not rushing around trying to figure out what to make for dinner. 

11. They are selective spenders

We often put off spending and rarely miss the item we were tempted by. The best way to not spend money is to just not buy anything. It's like telling someone who wants to lose weight that the key is diet and exercise.  The same thing is true of saving money. You want to save money, then don't spend it!

12. They do the work themselves

My husband changes the oil in our cars. I clean my own house, we do our own yard work. If we can do the work ourselves, we usually chose that route.  I do love to treat myself occasionally with a coffee from Starbucks, but I can make it at home for far cheaper and I usually do that the majority of the time.

13. They plan ahead

Failure to plan is planning to fail. The biggest financial trap I've seen people get into is not planning ahead. This could be as long term as planning for retirement but it could also mean that you are planning ahead to avoid spending money. When the kids were little and we would be out and about, I would plan our trips around nap times and meal times. I didn't want to be stuck without food on hand for the kids and be forced to eat out. Planning ahead saves you money in the long run.

14. They don't buy things at full price

As a family we buy 90% of our clothing second hand. Most of it is stocked up during garage sale season {tips on how to buy second hand clothing for the whole family}, but for those items I don't buy second hand, I never buy something full price. I rarely tempt myself by even going to the mall, but if I do, the only racks that draw my attention or are even a consideration are the sale racks. You can see this post for more specifics on how we save money on clothing. 

15. They use the library

We make good use of our local library. We rarely spend money on books. I see great value in books, though if you are only reading a book once or twice, I don't see value in the price tag. We find book titles that we are interested in and put them on hold. This sometimes requires planning {see number 13}, especially if you are leaving on a trip and need a book or two to read on vacation. We also use their free local museum passes and schedule in the free events that occur at our local library.

16. They bring it from home

I have a fully stocked fridge at home, so we pack our lunch if we are spending the day at the museum. I have reusable water bottles with me in case we get thirsty. If I have something at home that I might need, I bring it along instead of buying it. 

17. They buy quality items

I would rather pay a little bit  more to get a quality item that doesn't need to be replaced as often as a lower quality item. This means that I know the quality brands and gravitate towards those when I make a purchase. This doesn't mean that I buy the quality items full price, this only means that I know which brands are higher quality and I focus on those if I can.  For instance, when I was looking for a new bike for my youngest son at a garage sale, I had a particular brand in mind because I knew that it was a higher quality item. This same rule applies when I am shopping for used clothing. I know my brands and buy higher quality items because even after they have been handed down multiple times, the clothing is still in good shape.

18. They cook from scratch

Processed foods are more expensive. While they are more convenient, they aren't healthier and they usually cost more. I rarely, if ever, buy processed foods. 

19. They use {and reuse} what they have

It's not uncommon to find a bottle upside down in one of our cabinets. We squeeze every last drop out of the toothpaste tube and aluminum foil and ziploc bags get washed and reused. We try to make the best use out of what we have before we replace it. That sometimes means being creative and doing things a different way than we planned, but it's best to use what we have on hand rather than spend money on something we don't need.

20. They join rewards programs

Getting the best price for something is almost always on my mind. We have a rewards credit card {that we pay off each month} that gives us cash instead of points so that we can spend the money on whatever we want. I have rewards cards at nearly every store I frequent so that I can get the best prices at checkout. We make the most out of the purchases that we do make, so that our spending dollar goes further.I'm constantly learning and would love to learn from you! Perhaps you have a tip or two that I didn't add to this list. I would love to hear if you have anything to add. In the meantime, making a little change here and there can save you big change in the long run! 

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Three things you need to know about identity theft, and how to prevent it from happening to you

 Three things you need to know about identity theft, and how to prevent it from happening to you

Several months ago, my husband was the victim of identity theft.  Using his personal information, someone was able to apply for {and receive} loans, credit cards, and cell phones, among other items.  He has spent dozens of frustrating hours over the last few months trying to close the accounts, restore his credit, and prevent this from happening again. 

With the slew of well-publicized security breaches happening lately, affecting tens of millions of people, it is likely only a matter of time before this happens to you or someone you know.  My husband has offered to write a post to share with my readers about what he learned from this unfortunate situation, and how you can prevent it from happening to you.  Please read his story, and use the included links to help educate and protect yourself from identity theft.

So in the aftermath of having my identity stolen, and while still in the midst of the incredibly frustrating process of recovering my credit, Rachel asked me if I would pass on a few of my key learnings to her readers.  I agreed to do so, with the sincere hope that some of you will take the time to read through this and use the included links to lock down your credit and help prevent yourself from becoming a victim. I have also come across many helpful articles and websites throughout this process, and I included links to many of them at the end. 

With all that said, here are the three most important things that I have learned about identity theft:

#1)  Credit monitoring services (like LifeLock, ProtectMyID, Identity Guard, etc) don’t (and can’t) do anything to protect you from getting your identity stolen, nor do they keep people from using your identity to open accounts, buy goods, get loans, etc. 

A credit monitoring service will simply alert you that a creditor has pulled your report in order to verify your credit worthiness.  Depending on the speed of their system, that alert may or may not arrive before you would find out on your own - likely the same way that I did - through letters (bills, account notices, etc) from the creditors themselves.  Credit monitoring services do have agents who can help walk you through the process of cleaning up your credit, although you will have to do the majority of the work on your own, and most of the information they provide can be found for free online.  In my experience with XXXXX credit monitoring service (which I received for free due to a well-known security breach this past year, but only bothered to sign up for after my identity was stolen) the agent was very knowledgeable, but it took over a month after registering my initial complaint before the agent was assigned to me and began to work on my case.  Credit monitoring services will likely also offer various "guarantees" and "insurance policies" in the event that you become the victim of identity theft.  My advice: read the policies carefully and decide for yourself what they are worth before signing up.  

Although credit monitoring services don't actually protect your identity, what is worse, in my opinion, is that offers of free credit monitoring seems to be an easy PR move for companies eager to make a show of taking responsibility for allowing a data breach - easier, it would seem, than actually protecting your data in the first place.  ("Sorry we couldn't be bothered to do our jobs and protect the highly-sensitive personal information we have collected from you.  Here's a coupon for a service of dubious value but with an impressive sounding name.")  If this approach is cheaper and easier than staying ahead of the (admittedly increasingly sophisticated) hackers out there, then don't expect it to change anytime soon.

#2)  Placing a Fraud Alert on your credit file if you suspect your identity has been stolen is a good initial step, but not a permanent or foolproof solution. 

A fraud alert is a message placed in your credit file asking creditors to verify your identification (generally by calling you at a number you provide) before extending credit in your name, in case someone is using your information without your consent.  This is free and easy to do, and is a good first step if you suspect your identity has been stolen.  Simply go online to one of the three main credit bureaus (Experian, Equifax, or TransUnion) and fill out a form.  They will notify the other two bureaus for you.

I actually did this (based on advice I found online through the Federal Trade Commission website) soon after realizing that my identity had been stolen, and received a call within an hour from a company attempting to open an account for someone in my name.  I told them no, and based on that brief conversation, they didn't extend that person credit that they otherwise would have.  The system worked.  It also appears to be the last time (based on information that I was able to glean later from my credit report) that someone tried to open a new account in my name.  My guess is that after being turned down for credit due to the fraud alert, the person realized that the jig was up with my information, and proceeded to the next name on a list of stolen identities that they probably bought online from some hacker in Russia.

However, a fraud alert is not a cure-all solution.  It only lasts 90 days, (although it can be extended up to 7 years by providing proof of identity theft - generally in the form of a police report) and more importantly, it does not require creditors to call and verify your identification.  It is merely a request that they can comply with at their discretion.  This seems like a pretty big loophole to me, and one that I was not willing to live with long-term.

#3)  A Security Freeze (often mistakenly referred to as a “Credit Freeze”) is the best way to prevent unauthorized use of your identity to obtain credit. 

A security freeze blocks new creditors from accessing your credit report, although current creditors will still have access.  While it doesn’t actually prevent a creditor from issuing credit in your name, the inability to review your credit history (and thereby determine your credit worthiness) will cause nearly all potential creditors to deny issuing the credit.  However, the downside of a security freeze is that legitimate creditors (with whom you are genuinely trying to obtain credit) are also unable to view your credit history. 

Hopefully this likely isn’t something that you need to do very often, for a few reasons.  One, every time a "hard-inquiry" is made to your credit report, your credit score goes down.  Not by much, but it does affect your score, meaning that you are more likely to pay higher interest rates or to be turned down for credit in the future.  The second reason that you shouldn't apply for every department store credit card offered to you is that they rarely have rates and terms as good as you can find elsewhere, and the 15% you are about to save on that pair of jeans from Macy's is going to cost you more in the long run.  It just doesn't make good financial sense.  Pick a few cards (based on a combination of their fees, rates, and rewards programs) and stick with them.

However, there are times when you will need to access your credit.  In the event that you do, your credit report can be “thawed”, either temporarily or permanently, generally using a 10 digit PIN provided by the credit bureau when you apply for the freeze.  Just don’t lose the PIN, because I hear it can be very difficult (as you should hope it would be) to get your credit thawed without it. 

Depending on your situation, there may be a fee of up to $10 (from each bureau) each time you freeze or thaw your credit, so this isn’t something you want to do all the time.  However, I can tell you from experience that paying a $10 fee is much better than having your identity stolen.  It is also not necessary to thaw your credit report with all the bureaus when attempting to obtain credit, only the bureau(s) with which that particular creditor works.  So always ask before you thaw.

Because I can’t recommend enough placing a Security Freeze on your credit report, here are some links to the various credit bureau sites where you can obtain a freeze, along with some information on the process.  The three main credit bureaus that most people is familiar with - or at least have heard of - are listed, along with two others that were new to me until I started this process.  You can complete the process of adding a security freeze to your credit report through all five bureaus in less than half an hour.  Do it.  Trust me, you'll be glad you did.

Experian:  There is a $10 charge (or free if you are a victim of identity theft and mail in a copy of your police report) to place a security freeze with Experian, although I didn’t do this and still wasn’t charged.  You will likely have to correctly answer a series of “out of wallet”* questions, and then your 10 digit PIN will be given to you.  (There is also an option to create your own PIN if you prefer.)

*An "out of wallet" question is a type of question used to verify your identity that would be easily known to you, but unlikely to be found in your wallet.  Some examples of out of wallet questions are "What city were you born in?" or "What bank holds your mortgage?".

Equifax:  There is a $10 charge (or free if you are a victim of identity theft and mail in a copy of your police report) to place a security freeze with Equifax.  You will likely have to correctly answer a series of “out of wallet” questions, and then your 10 digit PIN will be given to you. 

TransUnion:  There is a $10 charge (or free if you state that you are a victim of identity theft) to place a security freeze with TransUnion.  You may have to correctly answer a series of “out of wallet” questions, and then you will be directed to create an online account with TransUnion, and establish a 6 digit PIN.

Innovis:  There is no charge to place a security freeze with Innovis.  Simply fill out an online form, and you will receive your 10 digit PIN by mail.

Clarity Services:  There is no charge to place a security freeze with Clarity Services.  You will need to download and fill out a request form, and then mail it in to them along with a copy of your driver’s license.  You will receive your 10 digit PIN by mail.

Some other notes and helpful links:

It is always a good idea to review your credit history periodically and correct any mistakes that may be on there.  You can request your freecredit report once a year from each of the three main bureaus. 

You also may want to consider opting out of “pre-screened” or “pre-approved” offers of credit or insurance.  Since thieves will occasionally steal mail from your mailbox, this can help reduce your risk, along with reducing the volume of junk mail you receive.  You can opt out for 5 years from the website, or you can opt out permanently by downloading and mailing in a form.  This one form covers offers from Experian, Equifax, TransUnion, and Innovis.  It is possible to opt back in at a later date if you change your mind.

If you have been (or think you may have been) the victim of identity theft, this website from the Federal Trade Commission is very helpful.

More information from the FTC about security freezes

Brian Krebs (an investigative reporter who covers cybercrime) discusses his experiences with identity theft, security freezes, and credit monitoring in some interesting articles with tons of great information.  If you've made it this far and still haven't had your fill of identity theft and cybercrime related information, I highly recommend reading his blog.

Phew! I know that's a lot of information! In the six months that my husband has been dealing with this, there have been a lot of interesting realizations. Some companies are easier to deal with than others and some companies don't seem to even speak internally to one another. It's a frustrating process. Protect yourself as best you can before identity theft happens to you, and if it does happen to you, I hope some of this information is helpful.

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